FedEx logistics company (NYSE: FDX) disclosed cash figures for the 4th quarter of the 2021 financial year:
- revenue increased by thirty percent, up to $22.6 billion;
- operating profit increased by 279%, up to 1.8 billion, and adjusted operating profit by 117%, up to 2 billion;
- unblemished profit including non-cash items amounted to 1.9 billion, and adjusted unblemished earnings increased by 105%, up to 1.4 billion.
And oh so ended for FedEx 2021 cash year.:
- revenue increased by twenty-one percent, up to $84 billion;
- operating profit increased by 142%, up to 5.9 billion, and adjusted operating profit by eighty-eight per cent, up to 6.2 billion;
- net profit quadrupled, up to 5.2 billion, and adjusted net income increased by eighty-six percent, up to 4.9 billion.
FedEx Express, FedEx Ground and FedEx Freight are the main operating segments of the company. All of them 5:
- FedEx Express - fast worldwide delivery, main business sector.
- FedEx Ground - Economical Shipping in the US and Canada. Clients - companies and residents of private homes.
- FedEx Freight - delivery of small parcels by trucks.
- FedEx Services - a set of support services for other companies.
- The rest is various office and logistics services. This also includes spending, that are not related to the main operational work.
FedEx Express's fourth-quarter operating income more than doubled: increased the size of interstate and domestic shipments. Sector operating margin up 260 basis points, since the company has optimized its delivery network.
Quarterly revenue in the FedEx Ground segment added 27%: companies are using FedEx services more often, and the cost of services increased by 14%. Operating margin up 310 basis points on higher revenues and lower transportation costs. The operating profit was also negatively affected by the labor shortage..
FedEx Freight's operating margin doubled in the fourth quarter, with 8 to 16%: the average daily volume of parcels increased by 30%, and the cost of services added 6%.
In fiscal 2021, the company's operating cash flow doubled from 5 up to 10 billion dollars. Next year, FedEx plans to increase its capital expenditures from 5,9 up to 7.2 billion. The company can use the remaining money to increase dividends and pay off debt..
After the report, FedEx shares fell by 4%, from 303.7 to 290,4 $. According to analysts, the company's securities in the following 12 months can grow by 16%, to 336 $.
Revenue in the fourth quarter, million dollars
| 2020 | 2021 | The change | |
|---|---|---|---|
| FedEx Express | 8560 | 11 275 | 31,7% |
| FedEx Ground | 6394 | 8132 | 27,2% |
| FedEx Freight | 1615 | 2235 | 38,4% |
| FedEx Services | 7 | 8 | 14,3% |
| Rest | 782 | 915 | 17% |
| Total | 17 358 | 22 565 | 30% |
FedEx Express
2020
8560
2021
11 275
The change
31,7%
FedEx Ground
2020
6394
2021
8132
The change
27,2%
FedEx Freight
2020
1615
2021
2235
The change
38,4%
FedEx Services
2020
7
2021
8
The change
14,3%
Rest
2020
782
2021
915
The change
17%
Total
2020
17 358
2021
22 565
The change
30%
Revenue for the year, million dollars
| 2020 | 2021 | The change | |
|---|---|---|---|
| FedEx Express | 35 513 | 42 078 | 18,5% |
| FedEx Ground | 22 733 | 30 496 | 34,1% |
| FedEx Freight | 7102 | 7833 | 10,3% |
| FedEx Services | 22 | 32 | 45,5% |
| Rest | 3847 | 3520 | −8,5% |
| Total | 69 217 | 83 959 | 21,3% |
FedEx Express
2020
35 513
2021
42 078
The change
18,5%
FedEx Ground
2020
22 733
2021
30 496
The change
34,1%
FedEx Freight
2020
7102
2021
7833
The change
10,3%
FedEx Services
2020
22
2021
32
The change
45,5%
Rest
2020
3847
2021
3520
The change
−8,5%
Total
2020
69 217
2021
83 959
The change
21,3%
