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December 21, 2020FedEx Corporation has reported the following consolidated results for the quarter ended November 30 (adjusted measures exclude the items listed below for the applicable fiscal year):
| Fiscal 2021 | Fiscal 2020 | |||
| As Reported (GAAP) |
Adjusted (non-GAAP) |
As Reported (GAAP) |
Adjusted (non-GAAP) |
|
| Revenue | $20.6 billion | $20.6 billion | $17.3 billion | $17.3 billion |
| Operating income | $1.47 billion | $1.51 billion | $554 million | $684 million |
| Operating margin | 7.1% | 7.4% | 3.2% | 3.9% |
| Net income | $1.23 billion | $1.30 billion | $560 million | $660 million |
| Diluted EPS | $4.55 | $4.83 | $2.13 | $2.51 |
This year’s and last year’s quarterly consolidated results have been adjusted for:
| Impact per diluted share
|
Fiscal 2021 | Fiscal 2020 |
| Mark-to-market TNT Express retirement plan accounting adjustment |
$0.15 | — |
| TNT Express integration expenses | 0.13 | 0.19 |
| Aircraft impairment charges | — | 0.19 |
“My sincere appreciation goes out to our nearly 600,000 team members around the world who go above and beyond to keep the world moving during this ongoing pandemic and unprecedented peak season. Our strong revenue and earnings growth during the quarter is a reflection of their continued hard work and commitment to our customers,” said Frederick W. Smith, FedEx Corp. chairman and chief executive officer. “These results demonstrate the unparalleled strength of our global express network, the breadth of our e-commerce capabilities, and the dedication of our people.”
Operating results increased due to volume growth in FedEx International Priority and U.S. domestic residential package services and pricing initiatives across all transportation segments. These factors were partially offset by costs to support strong demand and to expand services, variable compensation expense, and COVID-19-related costs, including expenses incurred to ensure the safety of FedEx team members and customers as well as the costs of network contingencies, including additional personnel to support operations through the pandemic.
Net income includes a pretax non cash loss of $52 million ($41 million, net of tax, or $0.15 per diluted share) associated with amending a TNT Express European pension plan to harmonize retirement benefits. Net income also includes a tax benefit of $191 million ($0.71 per diluted share) primarily related to favorable guidance issued by the Internal Revenue Service during the quarter. Last year’s results included a tax benefit of $133 million ($0.51 per diluted share) from the recognition of certain foreign tax loss carry forwards.
Outlook
FedEx is not providing an earnings forecast for fiscal 2021. The capital spending forecast for the year remains $5.1 billion.
“The benefits of the investments across our business over the past several years are reflected in our strong second quarter results,” said Michael C. Lenz, FedEx Corp. executive vice president and chief financial officer. “While the overall environment remains uncertain, we expect earnings growth in the second half of fiscal 2021 driven by the anticipated heightened demand for our services as we continue to execute on our strategic priorities.”
