Memphis courier FedEx reports $1.25 billion in profit as business deliveries soar



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Memphis courier FedEx reports $1.25 billion in profit as business deliveries soar

On Tuesday, the Memphis, Tennessee-based American multinational courier service provider FedEx Corp., had reported net earnings of $1.25 billion over its first fiscal quarter of the year that ended on Aug. 31, as consumers were reportedly avoiding stores and relying heavily on online shopping amid a pandemic outbreak at large.

Apart from that, the 49-year-old parcel carrier had said at its quarterly earnings’ report that the delivery giant had brought in roughly $19.3 billion in revenues over its first fiscal quarter that ended on Aug. 31 as beforementioned, which in effect had made the Memphis-based parcel service provider one of the few companies which were being benefitted from the pandemic outbreak.

Nonetheless, since the pandemic had shuttered down a number of big-league retailers alongside businesses and home deliveries had always been less profitable for FedEx, FedEx operational profits over the three months between July and August had largely been capped due to a slowdown in business activities.

Apart from that, as a swathe of US retailers, mostly brick-and-mortar businesses, had been facing off a sheer uncertainty regarding the duration of the pandemic outbreak, the Memphis, Tennessee-based company had not disclosed its full-year profit outlook for 2020.

FedEx posts quarterly profit as business demand improves

Besides, according to FedEx Corp.’s earnings’ report for the quarter that ended on Aug.

31, the company’s revenues at its core Express segment rose by $9.65 billion, up from a sum of $8.95 billion on a year-on-year basis, while the parcel service provider’s Ground service had reported $7.04 billion in revenues compared to a revenue of $5.18 billion at the same time a year earlier.

Concomitantly, the American multinational courier service provider had also added that it was going to raise its shipping rates by 4.9 per cent for its Express, Ground and Home services as early as from January 2021, while it had heightened up its Freight shipping charge between 4.9% to 5.9%.

Meanwhile, referring to an uptick in business demands, FedEx Chief Financial Officer (CFO) Alan B. Graf said in a post-earnings’ call with the reporters, “While business demand improved in the first quarter, continued uncertainties cloud our ability to forecast full-year earnings.