Parcel delivery and trucking company FedEx Corp. on Tuesday reported it turned its finances around dramatically in the most recent quarter as it also wrapped up its fiscal year.
It reported fiscal fourth quarter net income of $1.02 billion, or $3.75 per share, compared to a loss of $70 million a year earlier, or 26 cents per share. Revenue increased to $15.7 billion from $13 billion.
Operating results benefited from higher base rates, increased package volume, and the inclusion of TNT Express results, according to the Tennessee-based company.
“Net income and earnings per share reflect tax benefits of $104 million, or 37 cents per diluted share, related to the implementation of new foreign currency tax regulations, the adoption of a new accounting standard for share-based payments, and certain transactions related to the TNT Express integration,” FedEx said in a statement.
For fiscal 2017, FedEx reported net income skyrocketed to $3 billion, or $11.07 per share, compared to $1.82 billion, or $6.51 per share, during its 2016 fiscal fourth quarter. Revenue for fiscal 2017 surged to $60.3 billion from $50.4 billion a year earlier.
Despite the better overall results, the FedEx Freight Segment saw operating income fall by 3% to $133 million in the fiscal fourth quarter as revenue increased 6% to $1.7 billion.
“Revenue increased due to higher base rates and fuel surcharges. Average daily shipments were flat as the company focuses on improving revenue quality,” FedEx said. “Operating results decreased slightly as higher salaries and wages and increased information technology expenses offset the benefit from higher base rates.”
The FedEx Express Segment saw operating income improve 14% to $863 million. Revenue climbed 7% to $7.18 billion, primarily due to increased package volume, driven by international export growth of 5%, and higher base rates, according to the company.
The company’s TNT Express segment reported operating income of $26 million on revenue of $1.91 billion.
The FedEx Ground segment saw operating income move up by 7% to $702 million while revenue increased 9% to $4.68 billion.
Looking ahead to the 2018 fiscal year that recently got underway, FedEx said it was unable to provide any forecast due to pension-related adjustments. However, adjusted earnings before these expenses are expected to between $12.45 to $13.25 per share. That compares to fiscal 2017 adjusted earnings of $12.30 per share and $10.80 per share for fiscal 2016.