Press Releases
Earnings Per Share Increases 16%
TAIPEI, July 14, 2000--FedEx Corporation
(NYSE:FDX) reported record earnings of $0.85 per diluted
share for the quarter ended May 31, up 16% from $0.73 per
share last year.
Fourth Quarter Results
FedEx Corp. reported the following consolidated
results for the fourth quarter:
- Revenue of $4.9 billion, up 11% from $4.4 billion the
previous year
- Operating income of $426 million, up 9% from $390 million
a year ago
- Net income of $245 million, up 11% from last year's $221
million
Full Year Results
For the full fiscal year, FedEx Corp. reported
earnings of $2.32 per diluted share, up 10% from $2.10 per
share last year which included $91 million of strike contingency
costs.
Additional consolidated results for the fiscal
year:
- Revenue of $18.3 billion, up 9% from $16.8 billion the
previous year
- Operating income of $1.22 billion, up 5% from $1.16 billion
a year ago
- Net income of $688 million, up 9% from last year's $631
million
"Our unparalleled global express network
is delivering very strong growth, particularly in Asian and
European markets," said Frederick W. Smith, Chairman, President
and CEO. "Revenue from our premium FedEx International Priority(R)
service grew 21% in the fourth quarter and 18% for the full
year.
"FedEx is well positioned for continued growth,
as businesses large and small are increasingly relying upon
us to streamline their supply chain and reduce inventory
costs through innovative transportation, logistics and information
solutions," said Smith.
Alan B. Graf, Jr., Executive Vice President
and Chief Financial Officer commented, "In the fourth quarter,
the average daily volume growth rate improved at FedEx Express,
with growth in U.S. domestic express traffic reaching its
highest level in more than a year. Fuel prices resulted in
$84 million in additional expense during the quarter and
$273 million for the full fiscal year. The increase in fuel
expense in the fourth quarter was offset by revenue generated
by fuel surcharges at FedEx Express, which increased from
3% to 4% in April.
"In fiscal 2001 we expect to improve growth
and profitability largely through new initiatives that are
allowing us to offer the entire spectrum of FedEx services
through a single point of access. We also intend to better
serve small and medium sized businesses by giving them more
choices and easy-to-use, information-rich solutions to meet
all their shipping needs--from express to more economical
ground-based transportation. While there will be increased
expenses resulting from the new initiatives, particularly
in the first quarter, we anticipate another record year for
sales and profit as well as improving returns and cash flow."
The company completed its 15 million share
repurchase program during the fourth quarter.
FedEx Express
For the fourth quarter, FedEx Express reported:
- Revenue of $4.0 billion, up 9% from last year's $3.6
billion
- Operating income of $336 million, up 10% from $306 million
a year ago
International Priority average daily volume
grew 14% during the quarter, while total average daily package
volume grew 5%. Operating income from the sale of aircraft
noise reduction kits was $10 million compared to $16 million
in last year's fourth quarter. Other income included a gain
of $12 million from the insurance settlement on an MD11 aircraft
destroyed in an accident in October.
FedEx Ground
For the fourth quarter, FedEx Ground reported:
- Revenue of $549 million, up 10% from last year's $501
million
- Operating income of $70 million, down slightly from $71
million a year ago
Average daily volume grew more than 3% during the quarter.
Operating income included $11 million of losses associated
with the first quarter of operations of the company's FedEx
Home Delivery service. The company expects to incur losses
of about $50 million in fiscal 2001 including the acceleration
of the expansion of Home Delivery. The faster rollout will
enable Home Delivery service coverage of about 80% of the
U.S. population by September 2001.
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