Press Releases
Net Income Increases 30%
MEMPHIS, Tenn., June 30, 1999 ... FDX Corporation (NYSE: FDX) today
reported record earnings of $0.73 per diluted share for the quarter
ended May 31, up 28% from $0.57 per share last year.
FDX Fourth Quarter Results
FDX Corp., parent of Federal Express Corp. (FedEx) and RPS, Inc.
(RPS), reported the following consolidated results for the fourth
quarter:
- Revenue of $4.4 billion, up 7% from $4.1 billion the previous
year
- Operating income of $390 million, up 21% from $322 million a
year ago
- Net income of $221 million, up 30% from last year's $171 million
"FDX Corp. is successfully executing its business strategy by leveraging
the collective strength of its diverse global network and by offering
unique e-commerce and supply chain management solutions to the marketplace,"
said Chairman, President and Chief Executive Officer Frederick W.
Smith. "As businesses increasingly source and sell products in a
rapid, just-in-time manner, new markets are being created around
the world and FDX is an integral part of this dynamic trend."
FDX Full Year Results
For the full fiscal year, FDX Corp. reported earnings of $2.10
per diluted share, up 24% from $1.69 per share last year.
FDX Corp. also reported the following consolidated results for
the fiscal year:
- Revenue of $16.8 billion, up 6% from $15.9 billion the previous
year
- Operating income of $1.2 billion, up from $1.0 billion a year
ago
- Net income of $631 million, up 26% from last year's $503 million
Excluding this year's $91 million cost of contingency plans related
to the FedEx pilot negotiations and last year's $88 million merger
expenses related to the Caliber acquisition, diluted earnings for
the year were $2.28 per share, up 17% from $1.95 per share a year
ago.
"The fourth quarter caps a record year at both FedEx and RPS,"
said Executive Vice President and Chief Financial Officer Alan B.
Graf, Jr. "Profitability is improving as a result of our operating
and revenue-generating strategies. By operating each of the FDX
subsidiaries independently to compete in distinct market segments,
we bring the most appropriate services and cost structure to each
customer segment to maximize service levels and profitability. In
addition, we are marketing and selling a complete set of services
across our various customer bases to generate additional revenue
and higher margins, utilizing world-class information and technology
systems."
FedEx
For the fourth quarter, FedEx reported revenue of $3.6 billion,
up from last year's $3.4 billion. Operating income was $306 million,
up 17% from $261 million a year ago.
FedEx U.S. domestic revenue grew to $2.6 billion for the quarter,
up from $2.5 billion last year. FedEx U.S. domestic operating income
was $249 million, up from $239 million a year ago. Operating income
from the sale of FedEx aircraft noise reduction kits was $16 million
compared to $30 million in last year's fourth quarter.
International revenue increased to $1.0 billion for the quarter,
up 9% from last year. International operating income was $58 million,
up 168% from $21 million a year ago.
"FedEx's premium International Priority® (IP) service grew 10%
year-over-year, the highest quarterly IP growth rate this year,"
said Graf. "In the U.S., FedEx Priority Overnight® and FedEx Standard
Overnight® box volume grew a combined 6% year-over-year, continuing
to exceed the growth of lower-yielding deferred services. Stringent
cost controls, lower fuel prices, productivity gains and improved
service levels all helped FedEx post record U.S. domestic results
and significantly improved international earnings."
RPS
For the fourth quarter, RPS reported revenue of $501 million, up
15% from last year's $437 million and operating income of $71 million,
up 53% from $47 million a year ago.
Revenue per package increased 6% year-over-year during the quarter,
while average daily volume also grew 6%. Strong revenue growth,
effective cost controls and improved service levels enabled RPS
to report a record 14% operating margin.
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