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It
said that the loss, compared with a year-earlier profit of $780
million, included a non-cash pretax charge of $2.2 billion due
to a move to mark-to-market accounting, announced last week, for
employee pensions.
It added that unfavorable exchange rates due to the strong
dollar also weighed on earnings at its most profitable
international segment.
In pre-market trading FedEx shares were down 1.5 percent at
$178.36.
FedEx also gave a profit range for the current year that broadly
met analyst expectations but said that outlook does not include
any costs related to its planned acquisition of TNT Express.
The Memphis-based company reported an adjusted net profit for
the fiscal fourth quarter ending May 31 of $753 million or $2.66
per share, unchanged from $753 million or $2.54 per share a year
earlier.
Analysts had expected earnings per share of $2.68 for the
quarter.
In the fiscal fourth quarter, the net loss was $3.16 per share
compared with $2.62 per share a year earlier.
The company reported revenue for the quarter of $12.1 billion
versus $11.8 billion a year earlier. Analysts had expected
revenue of $12.3 billion.
FedEx said that for the fiscal year 2016 it expects earnings in
the range of $10.60 to $11.10 per share. Analysts have forecast
full-year earnings of $10.88.
FedEx announced in April that it had agreed to buy Dutch package
delivery firm TNT for $4.8 billion. The deal is awaiting
approval by European regulators and the company said the cost of
the deal is not included in its earnings outlook.
European regulators blocked a 2013 takeover of TNT by FedEx's
main rival United Parcel Service Inc due to concerns it would
stifle competition, but analysts say that the combined size of
FedEx and TNT in Europe would not threaten competition.
(Reporting By Nick Carey Editing by W Simon)
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