FedEx Corp. reported higher Q1 earningsStaff Writer | September 21, 2016
FedEx Corp. reported earnings of $2.65 per diluted share ($2.90 per diluted share on an adjusted basis) for the first quarter ended August 31.
FedEx Corp. $2.65 per diluted share
During the quarter, the company incurred TNT Express integration and Outlook restructuring program costs of $68 million ($45 million, net of tax, or $0.17 per diluted share).
In addition, the company incurred $28 million ($21 million, net of tax, or $0.08 per diluted share) of intangible asset amortization expense for TNT Express.
“The integration of TNT Express is proceeding smoothly, and the level of team members’ engagement is outstanding,” said Frederick W. Smith, FedEx Corp. chairman, president and CEO.
“Managing our operating companies as a portfolio of customer solutions helped FedEx achieve strong financial and operating results in the quarter, especially given the global economy’s continued low growth.”
FedEx is unable to forecast the fiscal 2017 year-end mark-to-market pension accounting adjustments.
As a result, the company is unable to provide unadjusted earnings guidance. Adjusted earnings for fiscal 2017 are projected to be $10.85 to $11.35 per diluted share before year-end mark-to-market pension accounting adjustments. This forecast includes TNT Express results and assumes moderate economic growth.
Excluding TNT Express-related integration and Outlook restructuring program costs and TNT Express intangible asset amortization, FedEx forecasts fiscal 2017 earnings of $11.85 to $12.35 per diluted share. The capital spending forecast for the fiscal year, which includes TNT Express, remains $5.6 billion ■