<\/p>\n
FedEx Delivered Fourth Quarter Fiscal 2023 Revenue of $21.9 Billion, Diluted EPS of $6.05, and Adjusted Diluted EPS of $4.94<\/b><\/p>\n
Ended Fiscal 2023 with Revenue of $90.2 Billion, Diluted EPS of $15.48, <\/i>and Adjusted Diluted EPS of $14.96<\/i><\/p>\n
Returned $2.7 Billion to Stockholders Through Stock Repurchases <\/i>and Dividends During Fiscal 2023<\/i><\/p>\n
Introduces Fiscal 2024 Outlook, Including $1.8 Billion of DRIVE Cost Savings<\/i><\/p>\n
| \n \n\u00a0<\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Fiscal 2023<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n Fiscal 2022<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n As Reported \n\u00a0<\/p>\n<\/td>\n Adjusted \n\u00a0<\/p>\n<\/td>\n As Reported \n\u00a0<\/p>\n<\/td>\n Adjusted \nRevenue<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$21.9 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$21.9 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$24.4 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$24.4 billion<\/p>\n<\/td>\n<\/tr>\n \nOperating income<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$1.50 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$1.77 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$1.92 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$2.23 billion<\/p>\n<\/td>\n<\/tr>\n \nOperating margin<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6.9%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n8.1%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7.9%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n9.2%<\/p>\n<\/td>\n<\/tr>\n \nNet income<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$1.54 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$1.25 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$558 million<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$1.80 billion<\/p>\n<\/td>\n<\/tr>\n \nDiluted EPS<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$6.05<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$4.94<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$2.13<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$6.87<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nThis year\u2019s and last year\u2019s quarterly and full-year consolidated results have been adjusted for:<\/p>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Fiscal 2023<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Fiscal 2022<\/b><\/p>\n<\/td>\n<\/tr>\n Impact per diluted share<\/i><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Fourth \n\u00a0<\/p>\n<\/td>\n Full \n\u00a0<\/p>\n<\/td>\n Fourth \n\u00a0<\/p>\n<\/td>\n Full \nMark-to-market (MTM) retirement plans accounting adjustments<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n($1.94<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n($1.92<\/p>\n<\/td>\n \n)<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$3.83<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$4.49<\/p>\n<\/td>\n \nGoodwill and other asset impairment charges<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.38<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.38<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nBusiness optimization costs<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.28<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.81<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nFedEx Ground legal matters<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.10<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.10<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.61<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.60<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nBusiness realignment costs<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.06<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.11<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.18<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.80<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n \nTNT Express integration expenses<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u2014<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.12<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n0.39<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\u201cThe solid close to the fiscal year demonstrates the significant progress Team FedEx has made in advancing our global transformation while adapting to the dynamic demand environment,\u201d said Raj Subramaniam, FedEx Corp. president and chief executive officer. \u201cFedEx is becoming a more flexible, efficient and data-driven organization as we significantly lower our cost structure, drive enhanced profitability, and deliver outstanding service for our customers.\u201d<\/p>\n Fourth Quarter Results<\/span><\/b><\/p>\n \nFourth quarter results demonstrate continued momentum across the business. Operating margins for the quarter were the strongest of the fiscal year as the company demonstrated strong expense management and executed DRIVE initiatives. The quarter\u2019s results were negatively affected by continued demand weakness and cost inflation, partially offset by cost-reduction actions and U.S. domestic package yield improvement.<\/p>\n \nFedEx Express operating results declined due to lower global volumes, partially offset by decreased expenses and higher U.S. domestic yields. FedEx Express continues to implement volume-related and structural cost-reduction actions, including further reductions in flight hours and the early retirement of certain aircraft and related assets, to mitigate the negative effect of ongoing demand weakness.<\/p>\n \nFedEx Ground operating results improved primarily due to higher revenue per package and cost-reduction actions. These factors were partially offset by lower package volume, higher infrastructure costs and increased other operating expenses.<\/p>\n \nFedEx Freight operating results declined primarily due to decreased shipments and lower weight per shipment, partially offset by improved revenue quality. FedEx Freight remains focused on cost discipline, supported by a fourth round of furloughs to match staffing with demand and network optimization from the planned permanent closure of 29 facilities.<\/p>\n \nFourth quarter results also include a noncash impairment charge of $70 million ($0.21 per diluted share) from the decision to permanently retire from service 18 aircraft and 34 related engines to align with the plans of FedEx Express to modernize its air fleet, improve its global network and better align air network capacity with current and anticipated demand. The quarter’s results also include $47 million ($0.17 per diluted share) of goodwill and other asset impairment charges related to the ShopRunner acquisition.<\/p>\n \nFourth quarter results include a tax expense of $46 million ($0.18 per diluted share) from a revaluation of certain foreign tax assets. Last year’s fourth quarter net income included a tax benefit of $46 million ($0.18 per diluted share) related to revisions of prior year estimates for actual tax return results.<\/p>\n Full-Year Results<\/span><\/b><\/p>\n \nFor the full fiscal year, FedEx Corp. reported the following consolidated results (adjusted measures exclude the items listed above for the applicable fiscal year):<\/p>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Fiscal 2023<\/b><\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n Fiscal 2022<\/b><\/p>\n<\/td>\n<\/tr>\n \n\u00a0<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n As Reported \n\u00a0<\/p>\n<\/td>\n Adjusted \n\u00a0<\/p>\n<\/td>\n As Reported \n\u00a0<\/p>\n<\/td>\n Adjusted \nRevenue<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$90.2 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$90.2 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$93.5 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$93.5 billion<\/p>\n<\/td>\n<\/tr>\n \nOperating income<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$4.91 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$5.37 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$6.25 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$6.87 billion<\/p>\n<\/td>\n<\/tr>\n \nOperating margin<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n5.4%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6.0%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n6.7%<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n7.3%<\/p>\n<\/td>\n<\/tr>\n \nNet income<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$3.97 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$3.84 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$3.83 billion<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$5.50 billion<\/p>\n<\/td>\n<\/tr>\n \nDiluted EPS<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$15.48<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$14.96<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$14.33<\/p>\n<\/td>\n \n\u00a0<\/p>\n<\/td>\n \n$20.61<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \nCapital spending for fiscal 2023 was $6.2 billion.<\/p>\n Transformation Progress<\/span><\/b><\/p>\n \nToday, FedEx announced an important step in its transformation journey. All FedEx Ground operations and personnel in Canada will transition to Federal Express Canada starting in April 2024. This transition will be seamless to customers, who can expect the same outstanding service they receive today. The new streamlined structure will position the company to more efficiently address future growth opportunities in the Canadian market.<\/p>\n \nFedEx is also making solid progress with Network 2.0, as the company has now announced optimization plans to streamline pickup-and-delivery operations across networks in 20 markets. In some of these markets, contracted service providers will be handling the pickup and delivery of ground and express packages. In others, pickup and delivery will be handled exclusively by employee couriers. Each market is unique and will be optimized based on a number of factors, including volume fluctuations, customer demand, facility footprints, and more. Both the employee courier and the contracted service provider models will continue to play critical roles within the U.S. operations network and for the overall success of the company strategy.<\/p>\n Capital Returns<\/span><\/b><\/p>\n \nDuring fiscal 2023, FedEx returned approximately $2.7 billion to stockholders through the combination of $1.5 billion of stock repurchases and $1.2 billion of dividend payments. Total repurchases during fiscal 2023 were over 9 million shares or 4% of the shares outstanding at the beginning of the year. As of May 31, 2023, $2.6 billion remained under the existing share repurchase authorization.<\/p>\n \nFor fiscal 2024, FedEx expects to repurchase $2.0 billion of FedEx common stock and previously announced a 10% increase ($0.44 per share) in the annual dividend rate on its common stock to $5.04 per share.<\/p>\n Outlook<\/span><\/b><\/p>\n \nFedEx is unable to forecast the fiscal 2024 mark-to-market (MTM) retirement plans accounting adjustments. As a result, FedEx is unable to provide a fiscal 2024 earnings per share or effective tax rate (ETR) outlook on a GAAP basis and is relying on the exemption provided by Item 10(e)(1)(i)(B) of Regulation S-K. It is reasonably possible that the fiscal 2024 MTM retirement plans accounting adjustments could have a material effect on fiscal 2024 consolidated financial results and ETR.<\/p>\n \nFor fiscal 2024, FedEx is forecasting:<\/p>\n \nThese forecasts assume the company’s current economic forecast and fuel price expectations, successful completion of the planned stock repurchases, and no additional adverse geopolitical developments. FedEx\u2019s ETR and earnings per share forecasts are based on current law and related regulations and guidance.<\/p>\n \n\u201cIn fiscal 2023, we delivered the early benefits of FedEx\u2019s cost and efficiency initiatives, powered by our DRIVE program,\u201d said Michael C. Lenz, FedEx Corp. executive vice president and chief financial officer. \u201cWe\u2019re approaching fiscal 2024 with the same level of intensity, maintaining a continued focus on improving profitability to position the company for success in what remains a challenging demand environment.\u201d<\/p>\n Corporate Overview<\/span><\/b><\/p>\n \nFedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $90 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally as one FedEx. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its 530,000 employees to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com\/about<\/a>.<\/p>\n \nAdditional information and operating data are contained in the company\u2019s annual report, Form 10-K, Form 10-Qs, Form 8-Ks and Statistical Books. These materials, as well as a webcast of the earnings release conference call to be held at 5:00 p.m. EDT on June 20, are available on the company\u2019s website at investors.fedex.com<\/a>. A replay of the conference call webcast will be posted on our website following the call.<\/p>\n |