FedEx says it expects to benefit from the US tax reforms that were passed late December by the Senate.

The move will reduce corporate taxes to 21 per cent from the current rate of 35 per cent. There also will be lower taxes on overseas profits.

 

FedEx plans to use any savings from the tax reforms to grow the business, fund its pension plan, increase dividends, continue its stock re-purchase plan and invest in acquisitions.

 

“This tax reform bill could go a long way to make US-based corporations more competitive globally,” said FedEx chief financial officer Alan Graf.