FedEx has reduced its losses in the fourth quarter of 2016 to $70 million as it celebrates “a historic year of significant accomplishments”.
The company reduced its losses from $895 million in the same period of 2015, while revenue increased from $12.1 billion to $13 billion. FedEx says results were helped by programme initiatives at FedEx Express and volume growth at FedEx Ground while an additional operating day and fuel costs also helped.
For the 2016 fiscal year, FedEx saw revenue increase to $50.4 billion and net income was up to $1.8 billion helped by programme initiatives at FedEx Express, e-commerce growth and fuel costs.
FedEx chairman, Frederick Smith says: “Fiscal 2016 was a successful year for FedEx in many ways, of particular note was our corporate operating margin improvement. Our May 25 acquisition of TNT Express capped a historic year of significant accomplishments that benefited shareowners, team members and customers, and strongly positions FedEx for long-term profitable growth.”
During the fourth quarter, FedEx Express revenue increased marginally to $6.72 billion while operating income was up 27 per cent to $757 million.
FedEx Ground saw revenue rise by 20 per cent to $4.3 billion and operating income was up nine per cent to $656 million due to higher volumes and increased revenue per package.
FedEx Freight saw revenue increase by two per cent to $1.6 billion and operating income stay at $137 million, as increased salaries and employee benefits offset higher revenue and improved efficiency.