U.S. parcels delivery company FedEx has reported a net loss of $895m for the three months to the end of May, missing analysts' expectations, blaming the strong U.S. dollar and rising pension costs.
Over the same period of 2014, the firm made a profit of $780m.
Shares of FedEx, up 5% this year, fell 1.1% in premarket trading.
The strong US dollar and rising pension costs weighed on FedEx's bottom line, as the company estimates. These offset a modest rise in domestic package volumes of 2%.
However, the firm expects better results in the future.
"We expect strong earnings growth in fiscal 2016 as we continue to focus on improving performance and successfully executing our profit improvement initiatives," said Alan Graf, FedEx's chief financial officer.
The company's outlook does not include any costs associated with its acquisition of Dutch package delivery firm TNT Express.
In April FedEx announced plans to buy its Dutch rival for €4.4bn ($4.8bn), as it looks to expand its European operations.
The company announced that it has raised the mandatory retirement age for its
board from 72 to 75, effective immediately. FedEx’s chief executive and
chairman, Frederick W. Smith, turns 71 in August.
Another board member, James Barksdale, turned 72 this year, the company said.
“This change is consistent with the market trend of increasing the mandatory retirement age for board members,” said David P. Steiner, the company’s lead independent director.
