FedEx reported improved earnings for the first quarter of its fiscal 2019 year, with a revenue of $17.1 billion versus $15.3 billion a year ago.
Its operating income was also up, from $971 million to $1.07 billion, according to GAAP figures.
The company cited higher volumes, increased yields and more favourable fuel costs. It also reiterated the impact of the TNT Express NotPetya cyberattack on last year’s results, as well as the acceleration of wage increases for hourly employees at the end of the last fiscal year due to the Tax Cuts and Jobs Act (TCJA)—all of which deducted about $170 million from the year’s totals.
“FedEx delivered higher first-quarter earnings driven by solid execution of our business plan and a strong U.S. economy,” said FedEx CEO and chairman Fred Smith. “We are very optimistic about our prospects for profitable growth and remain confident we will reach our goal to improve FedEx Express operating income by $1.2 billion to $1.5 billion in fiscal 2020 versus fiscal 2017.
FedEx’s targets for fiscal 2019 include revenue growth of 9%, an operating margin of 7.9% (8.5% excluding TNT Express), and capital spending of $5.6 billion.