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Tax break sends FedEx profit up 268pc to US$2.07 billion as sales rise 10pc
来源： 编辑：编辑部 发布：2018/03/22 10:40:36
MEMPHIS based FedEx Corp's fiscal third quarter net profit rocketed 268 per cent year on year to US$2.07 billion, drawn on revenues of $16.5 billion, up 10 per cent - with much credit going to the Trump administration's tax cut.
Net results include a tax benefit of $1.53 billion attributable to US President Donald Trump's Tax Cut and Jobs Act, said the company statement accompanying the results.
"We expect strong operating performance in each of our transportation segments in the fourth quarter,?said company chairman and CEO Frederick Smith.
“Execution of our long-term growth strategies, customer demand for the unique value of our broad portfolio of solutions and healthy growth in the global economy are driving our performance,?he said.
Operating results benefited from higher base rates, increased volume at FedEx Ground and FedEx Freight, and a favourable net impact from fuel.
Results were negatively affected by significantly higher variable compensation accruals, increased peak-related costs at FedEx Express and the impact of adverse weather.
"The [tax cut] act has three primary components: A provisional benefit of $1.15 billion from the remeasurement of the company’s net US deferred tax liability for lower tax rates;
"A benefit of $200 million from an incremental pension contribution made in February and deductible against the company’s prior year taxes at 35 per cent and a benefit of $170 million attributable to the phase-in of the reduced tax rate applied to the company’s year-to-date earnings," said the FedEx statement.
Revenue increased due to improved base rates, currency exchange rates and higher fuel surcharges, despite a lingering impact from the June cyberattack affecting TNT Express.
Total package volume declined one per cent, as lower international domestic and US domestic volumes offset international export package volume growth of one per cent.
Average daily freight pounds increased three per cent on higher volume in both international and US freight services.
With annual revenues of $64 billion, FedEx Corp offers integrated business applications through operating companies competing collectively and managed collaboratively and employs 425,000.
Net results include a tax benefit of $1.53 billion attributable to US President Donald Trump's Tax Cut and Jobs Act, said the company statement accompanying the results.
"We expect strong operating performance in each of our transportation segments in the fourth quarter,?said company chairman and CEO Frederick Smith.
“Execution of our long-term growth strategies, customer demand for the unique value of our broad portfolio of solutions and healthy growth in the global economy are driving our performance,?he said.
Operating results benefited from higher base rates, increased volume at FedEx Ground and FedEx Freight, and a favourable net impact from fuel.
Results were negatively affected by significantly higher variable compensation accruals, increased peak-related costs at FedEx Express and the impact of adverse weather.
"The [tax cut] act has three primary components: A provisional benefit of $1.15 billion from the remeasurement of the company’s net US deferred tax liability for lower tax rates;
"A benefit of $200 million from an incremental pension contribution made in February and deductible against the company’s prior year taxes at 35 per cent and a benefit of $170 million attributable to the phase-in of the reduced tax rate applied to the company’s year-to-date earnings," said the FedEx statement.
Revenue increased due to improved base rates, currency exchange rates and higher fuel surcharges, despite a lingering impact from the June cyberattack affecting TNT Express.
Total package volume declined one per cent, as lower international domestic and US domestic volumes offset international export package volume growth of one per cent.
Average daily freight pounds increased three per cent on higher volume in both international and US freight services.
With annual revenues of $64 billion, FedEx Corp offers integrated business applications through operating companies competing collectively and managed collaboratively and employs 425,000.