US courier company, FedEx, has forecast an increase in earnings, with gains from the acquisition of TNT Express.
FedEx has revealed an adjusted revenue of €14.9 billion for fiscal year 2018 compared to €13.6 billion in FY2017.
“I am proud of the financial and operational results FedEx delivered in fiscal 2018 and extend well-deserved congratulations to our more than 425,000 team members worldwide for their continued dedication to the Purple Promise, which simply states, ‘I will make every FedEx experience outstanding’,” said FedEx Chairman and CEO, Frederick Smith.
“It was a year of opportunities and challenges – anticipated and unexpected – and FedEx emerged more competitive than ever. In all my years at FedEx, I have never been so optimistic and so sure of our strategy and our ability to deliver an exciting future,” he said.
Fourth quarter operating results reportedly benefited from higher base rates, increased volume and the favourable net impact of fuel at each transportation segment. Accelerated wage increases for certain hourly employees partially offset these benefits.
According to FedEx, Q4 net results include a €220.3 million net tax benefit (€0.81 per diluted share) from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express and a €114.9 million tax benefit (€0.42 per diluted share) from foreign tax credits associated with distributions to the U.S. from the company’s offshore operations.