FedEx Corp. reported earnings of US$3.75 per diluted share (US$4.25 per diluted share on an adjusted basis) for the fourth quarter ended May 31, compared to a loss of US$0.26 per diluted share (earnings of US$3.30 per diluted share on an adjusted basis) a year ago.
This year’s and last year’s quarterly consolidated earnings have been adjusted for:
| Impact per diluted share | Fourth Quarter |
|
| Fiscal 2017 | Fiscal 2016 | |
| Mark-to-market (“MTM”) pension accounting adjustments | ($0.02) | $3.47 |
| TNT Express integration expenses | 0.32 | — |
| FedEx Trade Networks legal matters | 0.09 | — |
| TNT Express intangible asset amortization | 0.06 | — |
| FedEx Ground legal matters | 0.05 | 0.02 |
| TNT Express expenses and operating results from the date of acquisition | — | 0.34 |
| Tax impact – legal entity restructuring for TNT integration | — | (0.28) |
“Strong fourth quarter results completed a record fiscal 2017,” said Frederick W. Smith, FedEx Corp. chairman and chief executive officer. “We enter fiscal 2018 confident FedEx Corp. will continue to deliver outstanding value and opportunities for shareowners, customers, and team members for years to come.”
Fourth quarter results
FedEx Corp. reported the following consolidated results for the fourth quarter (adjusted measures exclude the items listed above for the applicable fiscal year):
| Fiscal 2017 | Fiscal 2016 | |||
| As Reported (GAAP) |
Adjusted (non-GAAP) |
As Reported (GAAP) |
Adjusted (non-GAAP) |
|
| Revenue | $15.7 billion | $15.7 billion | $13.0 billion | $13.0 billion |
| Operating income (loss) | $1.58 billion | $1.76 billion | ($68 million) | $1.51 billion |
| Operating margin | 10.1% | 11.2% | (0.5%) | 11.7% |
| Net income (loss) | $1.02 billion | $1.15 billion | ($70 million) | $897 million |
| Diluted EPS | $3.75 | $4.25 | ($0.26) | $3.30 |
Operating results benefited from higher base rates, increased package volume and the inclusion of TNT Express results. Net income and earnings per share reflect tax benefits of US$104 million, or US$0.37 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.
