FedEx Corp. Reports Fourth Quarter and Full-Year Earnings

“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 Frederick W. Smith, FedEx Corp. chairman and chief executive officer. “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.”

Fourth quarter operating results benefited from higher base rates, increased volume and the favorable net impact of fuel at each transportation segment. Accelerated wage increases for certain hourly employees partially offset these benefits.

Fourth quarter net results include a $255 million net tax benefit ($0.94 per diluted share) from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express and a $133 million tax benefit ($0.49 per diluted share) from foreign tax credits associated with distributions to the U.S. from the company’s offshore operations.

Full-year net results include tax benefits of $2.1 billion ($7.71 per diluted share) attributable to:
•A $1.6 billion benefit from the Tax Cuts and Jobs Act (TCJA), which has three primary components:
◦A provisional benefit of $1.15 billion ($4.22 per diluted share) from the remeasurement of the company’s net U.S. deferred tax liability for lower tax rates;
◦A benefit of approximately $200 million ($0.75 per diluted share) from an incremental pension contribution made in the third quarter and deductible against the company’s prior year taxes at 35%; and
◦A benefit of approximately $265 million ($0.97 per diluted share) attributable to the phase-in of the reduced tax rate applied to the company’s earnings.
•A net benefit of $255 million ($0.94 per diluted share) from corporate structuring transactions as part of the ongoing integration of FedEx Express and TNT Express; and
•A benefit of $225 million ($0.83 per diluted share) from foreign tax credits associated with distributions to the U.S. from the company’s offshore operations.

Capital spending for fiscal 2018 was $5.7 billion.

For the year, the company repurchased 4.3 million shares of FedEx common stock for approximately $1 billion.
more detail at: http://investors.fedex.com/news-and-events/investor-news/news-release-details/2018/FedEx-Corp-Reports-2018-Fourth-Quarter-and–Full-Year-Earnings/default.aspx

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