The American giant of messaging and logistics FedEx has closed its last fiscal year, ended May 31, with a net profit of 4.43 billion dollars (3.9 billion euros), which represents an advance of 8.3% compared to the result registered a year earlier.
During this period, the North American company reached revenues of 94.7 billion dollars (83.4 billion euros), 7.7% above the turnover of the previous twelve months. Operating profit stood at 5.46 billion dollars (4.8 billion euros), which implies a year-on-year increase of 4.6%.
FedEx's total costs increased by 8%, to 89.257 billion dollars (78.6 billion euros). The largest expense item corresponded to labor costs, followed by transportation disbursements and leases.
By business areas, the Express division generated revenues of 82.273 billion dollars (72.440 billion euros), 9% more than in the previous year. The freight business, for its part, earned 8.795 billion dollars (7.740 billion euros), which represents a decrease of 1%, while the other items unit accounted for 3.652 billion dollars (3.215 billion euros), 2% less.
Looking ahead to the fiscal year that began on June 1, FedEx anticipates that its revenues will grow by around 11% and forecasts earnings per share in a range of between 16.55 and 17.75 dollars (14.58 to 15.63 euros).
"The FedEx team achieved an impressive close to a solid fiscal year, providing excellent service to our customers and successfully executing our transformation initiatives. Our profitable growth strategy is paying off. We are building momentum across our global industrial network, driving structural improvements, and achieving wins in high-value, high-growth markets," said FedEx President and CEO Raj Subramaniam.
"With the successful spin-off of FedEx Freight, we begin this new phase positioned to grow, while further optimizing our network, reducing our operating costs, creating significant long-term value, and driving strong free cash flow," he added.