FedEx revenue grew to $15 billion in the third quarter of the 2017 fiscal year, with growth in all business segments while net income was up to $562 million.
Revenue was up from $12.7 billion and net income was up from $507 million, despite the operating margin falling to 6.8 per cent to $1 billion due to fuel costs, one fewer operating days at FedEx Express and FedEx Ground, and network expansion for the latter. It says these were partially offset by yield growth in all transportation segments.
FedEx Corp chairman and chief executive officer, Frederick Smith says: “Our worldwide FedEx team delivered an outstanding peak season. Even with our highest volumes ever, we achieved record service levels.”
“We are confident our strategic investments to expand our global scope and portfolio of solutions position FedEx for greater long-term profitable growth as we adapt to meet the evolving needs of our customers.”
FedEx is expecting that integrating TNT Express will help growth, and executive vice president and chief financial officer, Alan Graf says: “During the next three years, the benefits of the TNT Express integration, fleet modernisation, yield management, e-commerce growth and investments in network capabilities and efficiency will drive significant earnings growth.”