FedEx Q2 FY2018 earnings rise 11.7%

The parcel giant reported a net income of $755 million for the second quarter of its fiscal 2018 year, compared to $700 million during the same period last year, on revenues that jumped 9.4 percent year-over-year to $16.3 billion.    FedEx Corp. saw earnings of $2.84 per diluted share ($3.18 per diluted share on an adjusted basis) for its second quarter ended Nov. 30, compared to earnings of $2.59 per diluted share ($2.77 per diluted share on an adjusted basis) a year ago, the express delivery service company reported Dec. 19.
   Revenue was reported at $16.3 billion during the quarter, compared to $14.9 billion the same period last year, while net income was a reported $755 million, compared to $700 million during the same period last year.
   The earnings were affected, FedEx said, by the late June cyberattack on TNT Express, the Netherlands-based FedEx subsidiary that was significantly affected by the Petya global cyberattack that crippled computer systems in Europe, Asia and the U.S.
   “Both as-reported and adjusted fiscal 2018 earnings reflect the estimated negative impact of the June 27 cyberattack affecting TNT Express ($0.31 per diluted share),” FedEx said in a statement, adding that both this year’s and last year’s quarterly consolidated earnings have been adjusted for TNT Express integration expenses of $0.33 and $0.18 per diluted share, respectively.
   FedEx’s operating income increased due to higher base rates and increased volume at each transportation segment, partially offset by reduced revenue resulting from the aforementioned TNT Express cyberattack and higher TNT Express integration expenses, the company said.
   Results also reflect a tax benefit of about $80 million ($0.29 per diluted share) from foreign tax credits associated with a dividend paid from foreign operations, and a favorable net impact from fuel, FedEx explained in a statement.
   “Strategic execution by the FedEx team and a stronger global economy drove improved financial results, and we are well positioned for profitable, long-term growth,” FedEx Corp. chairman and CEO Frederick W. Smith said. “We are on track for another record holiday-shipping season.”