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FedEx posts quarterly US$70 million net loss despite 7.3pc revenue rise

US EXPRESS delivery giant FedEx Corp posted a quarterly net loss to US$70 million year on year, narrowing the previous year's net loss of $895 million. This year, quarterly revenues came in a $13 billion, up 7.3 per cent.

But full year profit came in at $1.82 billion up 73.3 per cent year on year, drawn on revenues of $50.4 billion, up 6.1 per cent.

The company said it was unable to provide guidance that included the results of the TNT takeover or the change in pension accounting.

"I was a little disappointed to see their guidance does not incorporate TNT," said Logan Purk, an analyst at Edward Jones. "The implication is their guidance would come down for the year if it included TNT."

The TNT acquisition, which closed May 25, gives FedEx an extensive ground delivery network in Europe. That makes it a stronger competitor to market leaders UPS and DHL, said Bloomberg.

FedEx expects capital spending related to the integration of TNT at $100 million this fiscal year, with total integration costs of $200 million in the same period, chief financial officer Alan Graf said on a conference call with investors and analysts.

While the purchase will boost earnings in fiscal 2018, Mr Graf declined to say whether it would dilute profits this year.

FedEx also reported adjusted fiscal fourth quarter earnings of $3.30, topping the average estimate of $3.28. Including TNT costs and pension accounting changes, FedEx had a net loss of $70 million, or 26 cents a share, for the quarter.