FedEx forecasts higher profit for FY 2018 after good fourth quarter

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FedEx beat analyst estimates in its fourth quarter, making gains in all sectors. FedEx Express saw sales rise 6.9%, to $7.18bn, while its ground business rose 9.1% and freight went up 5.7%. Net income for the group was $1.02bn in Q4 – compared with a loss of $70m a year earlier. Revenues were up 21.2% to $15.73bn. The company said the integration of TNT was on track – and this is the last quarter in which the results will be reported separately. FedEx is currently integrating five more TNT networks – the US, Canada, Japan, Spain and the UAE.

Capital spending in full-year 2018 is expected to be $5.9bn, which will include aircraft deliveries to support the modernisation programme. The company noted that its 777 flights from Liege to Memphis, connecting the two hubs, had been successful and improved transit times.