Cyberattack lowers FedEx's first quarter results

For the first quarter of fiscal year 2018, FedEx has reported revenue of US$15.3bn, compared to US$14.7bn in the first quarter of fiscal 2017. Operating income was US$1.12bn, compared to US$1.26bn the previous year and operating margin was 7.3% compared to 8.6% in the first quarter of fiscal year 2017. Net income was US$596m, compared to US$715m a year ago. Financial results during the quarter benefited from higher base rates at each of FedEx’s transportation segments, which was more than offset by reduced revenue and increased expenses resulting from the TNT Express cyberattack, TNT Express integration expenses, higher costs at FedEx Ground, a higher tax rate, and the impact from Hurricane Harvey. Results also benefited from lower incentive compensation accruals. The company is lowering its fiscal 2018 forecast due to the estimated full-year impacts of the TNT Express cyberattack.