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FedEx Archives: 2000 Press Releases

( BW)(TN-FEDEX-CORP)(FDX) FedEx Corp. Reports Higher Second Quarter Earnings; Holiday Volume Showing Impact of Slowing U.S. Economy

    Business Editors

    MEMPHIS, Tenn.--(BUSINESS WIRE)--Dec. 14, 2000--FedEx Corporation (NYSE: FDX) announced today that it expects to post earnings of $0.67 per diluted share for the second quarter ended November 30, up 18% from $0.57 per share last year. As previously announced, the company will release a full earnings report at 7:00 a.m. CST on Dec. 20 and conduct its quarterly earnings conference call at 9:30 a.m. CST.
    "FedEx Corp. delivered solid increases in operating and net income in the second quarter," said Alan B. Graf, Jr., chief financial officer for FedEx Corp. "The increases were driven by strong package yield improvements at FedEx Express, as well as volume and yield growth at FedEx Ground. Both companies continue to do an exceptional job of increasing productivity and reducing expenses."
    For the third quarter, which started in December, FedEx is experiencing a softening in volumes due to the slowdown of the U.S. economy and recent severe weather conditions. As a result, U.S. domestic growth rates at FedEx Express and FedEx Ground are expected to be flat to slightly down for December 2000.
    "The fastest growing part of the business remains FedEx International Priority shipments for the second quarter, and we expect our international priority shipments to grow 10-12 percent in the fiscal third quarter," said Graf. "However, we are seeing some softening in our Asian outbound volumes. Even with this slowing, we strongly believe that FedEx continues to grow market share in the fast-growing Asian markets and remains the leader in international express transportation of exports from the United States."
    FedEx will continue to impose strong cost controls as well as defer some capital expenditures until business conditions warrant further expansion. The company's fuel surcharges and hedging programs are helping to mitigate the effects of high fuel prices.
    "As for fiscal 2001 earnings estimates, we now believe that earnings per share will be in the range of $2.50 to $2.60 for fiscal 2001 compared to $2.32 for fiscal 2000," Graf said. "This scenario depends on a soft economic landing."
    With annual revenues of $19 billion, FedEx Corp. is the premier global provider of transportation, logistics, e-commerce and supply chain management services. The company offers integrated business solutions through a network of subsidiaries operating independently, including: FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Logistics, an integrated logistics, technology and transportation-solution company; FedEx Custom Critical, the world's largest provider of expedited time-critical shipments; and FedEx Trade Networks, a provider of customs brokerage, consulting, information technology and trade facilitation solutions. More than 2.5 million customers are connected electronically through the FedEx information network and approximately two-thirds of its U.S. domestic transactions are now handled on-line.

    Certain statements in this press release may be considered forward-looking statements, such as statements relating to management's views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic and competitive conditions in the markets we serve, matching capacity to volume levels and other factors which can be found in FedEx Corp.'s and its subsidiaries' press releases and filings with the SEC.

    --30--kh/na*

    CONTACT: FedEx Corp., Memphis
             Media Contact: William G. Margaritis, 901/818-7090
             Investor Contact: James H. Clippard, 901/818-7468
             Worldwide Web Home Page: www.fedex.com

    KEYWORD: TENNESSEE
    INDUSTRY KEYWORD: AIRLINES TRANSPORTATION E-COMMERCE