FedEx has announced its financial results for its fourth quarter and the full fiscal year ended May 31, 2015, reporting rising revenues alongside underlying growth in operating income, though the year included high transformation costs.
FedEx reported Q4 revenue of $12.1bn, an increase of 2.54% year-on-year. The company also recorded underlying operating income of $1.28bn, an increase of 4.92% year-on-year. Accordingly FedEx’s operating margin stood at 10.58%. However when the results include transformation costs related to changes in pensions accounting, aircraft impairments, a legal reserve increase and changes in segment reporting then FedEx recorded a loss of $1.32bn and a margin loss of -10.91%.
In terms of the full year results FedEx saw revenues rise by 4.17% to $47.5bn. The company also recorded adjusted operating income of $4.26bn and reported operating income of $1.87bn. The reported figure represents a decline of 51.05% year-on-year. According to the reported result FedEx’s full year operating margin stood at 3.94%.
The company stated that adjusted operating results increased sharply during the year due to higher volumes and base yields in all three transportation segments, benefits from the company’s profit improvement programme initiatives and a favourable net fuel impact. This was partially offset by increased incentive compensation and higher aircraft maintenance expense.
“Fiscal 2015 was a transformative year for FedEx with outstanding financial results driving expanded long-term value for shareowners,” said Frederick Smith, FedEx’s Chairman, President and Chief Executive Officer. “Significant acquisitions announced in the year promise to strengthen our portfolio of services and change what’s possible for customers. I am very proud of the FedEx team for its accomplishments and look forward to a successful fiscal 2016.”
More to follow.
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