(New York) The American letter and parcel delivery group Fedex published on Thursday a net profit for the third quarter of its staggered financial year, better than expected by analysts, despite a “difficult” context in terms of demand.
“Fedex delivers a new quarter with an improvement in its profitability in an environment that remains difficult regarding demand,” commented Raj Subramaniam, boss of the group, quoted in a press release.
“We are making real progress in our transformation process, while strengthening the value of our offering and improving the experience for customers,” he added, saying he had “never been more confident about our future as we build a more flexible, efficient and intelligent grid.”
The group’s activity fell over the quarter, ended February 29, to reach 21.7 billion dollars compared to 22.2 billion a year earlier. This is a little below the consensus (21.95 billion).
On the other hand, it did a little better with its net profit: 879 million dollars, compared to 874 million expected. Compared to the third quarter of the previous financial year, net profit increased by 14%.
Reported per share and excluding exceptional items – a benchmark for the markets – it comes out to $3.89 compared to $3.43 expected by the consensus.
In electronic trading after the New York Stock Exchange closed, Fedex shares jumped 13.04% around 4:45 p.m.
In its press release, the Memphis (Tennessee) group insists on the improvement in its operating profit and margin despite the slide in its turnover, affirming that this was in particular thanks to the implementation of its Drive business plan.
This program should result in a permanent cost reduction of $1.8 billion by the end of 2024.
For its entire financial year, the group expects a decline of less than -5% in its turnover and a like-for-like net profit per share of $15.65 to $16.65 (excluding accounting adjustments linked to retirement scheme), compared to 15.35 to 16.85 dollars previously forecast.
Very dependent on trade and the dynamism of the economy, the results and forecasts of messaging groups are often considered as leading indicators of the economic situation.