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About FedEx
FedEx Archives: 1998 Press Releases
( BW)(FDX-CORPORATION)(FDX) FDX Corp. Reports First Quarter EarningsBusiness Editors MEMPHIS, Tenn.--(BUSINESS WIRE)--Sept. 24, 1998--FDX Corp. (NYSE:FDX), parent of Federal Express Corp. (FedEx) and RPS, Inc. (RPS), today reported that earnings for the quarter ended August 31 were $1.00 per diluted share, compared to $0.86 per share last year (or $1.11 per share if the benefit of approximately $0.25 resulting from last year's UPS strike was included). Revenues for the quarter were $4.1 billion, 6% higher than last year's $3.9 billion. Operating income was $284 million compared to $304 million and net income was $149 million compared to $165 million a year ago. The results for last year include business generated by the UPS strike. Adjusting for this effect, this year's quarterly revenue and operating income would have increased 10% and 15%, respectively. "These solid financial results prove that FDX is benefiting from its diversified portfolio of transportation companies," said Chairman, President and Chief Executive Officer Frederick W. Smith. "The combined U.S. domestic growth for FedEx and RPS coupled with the successful implementation of yield management actions, productivity enhancements and stringent cost reduction initiatives more than offset the impact of the difficult international business environment." The company reported that FedEx's total revenues for the quarter were $3.4 billion, 4% higher than last year's $3.3 billion. Operating income for the quarter was $219 million compared to $264 million and net income was $113 million compared to $143 million a year ago. FedEx's first quarter U.S. domestic revenue was $2.5 billion compared to $2.4 billion last year, and operating income was $205 million compared to $241 million a year ago. Excluding the impact of the additional volume from the 12 operating days of the UPS strike (approximately $150 million in revenue and $50 million in operating income), U.S. domestic revenue and operating income increased 10% and 7%, respectively. Sales of FedEx's aircraft noise reduction kits contributed $29 million to first quarter U.S. domestic operating income compared to $36 million in last year's first quarter. FedEx's international operations remained profitable, despite weak international conditions, as fuel price declines, cost controls and price increases partially offset reduced International Priority(R) (IP) growth rates, currency exchange impacts, the effect of increased network capacity initiated in September 1997 and declining airfreight demand and yields. International revenue for the first quarter increased to $920 million from $867 million last year, while international operating income was $14 million compared to $23 million a year ago. RPS's revenues for the quarter were $441 million, up 23% from last year's $359 million. On a per day basis, revenue increased 11% after adjusting for six additional shipping days in this year's first quarter. Operating income for the quarter was $49 million, 41% higher than last year's $34 million. Operating income improved 28% over last year's first quarter after adjusting for the shipping day difference. Last year's first quarter revenue and operating income included approximately $21 million and $6 million, respectively, related to the UPS strike. Viking Freight, Inc.'s revenues for the quarter were $95 million compared to $103 million in last year's first quarter. First quarter operating income improved to $7 million compared to an operating loss of $5 million a year ago. The prior period included the results of Central Freight Lines, Inc., Spartan Express, Inc. and Coles Express, Inc., each of which were sold or shut down. "We are addressing the impact of difficult international economic conditions by aggressively managing costs and reducing capital expenditures until conditions warrant additional investment," said Smith. "We remain confident that FDX's business strategy is correct." FDX Corp., a $16 billion holding company, provides comprehensive transportation, logistics and supply chain management solutions. FDX Corp. principal operating subsidiaries are Federal Express Corp., the world's largest express transportation company; RPS, Inc., a business-to-business ground small package carrier; Roberts Express, Inc., a critical-shipment carrier; Viking Freight, Inc., a less-than-truckload carrier operating principally in the western U.S.; and Caliber Logistics, Inc., a contract logistics provider. This press release contains forward-looking statements and information relating to future financial performance or business expectations. The forward-looking statements are subject to risks and uncertainties, including those identified below, which could cause actual results to differ materially from historical results or those set forth in the forward-looking statements. Such factors, among others, that may cause such a difference include: the ability to control package yield, volume growth and costs; matching aircraft, vehicle and sort capacity additions or deletions to customer volume levels; fuel costs; regulatory changes; and other factors that are identified in FDX Corp.'s and its subsidiaries' press releases and filings with the Securities and Exchange Commission, including Annual Reports, Form 10-Ks and Form 10-Qs.
FDX CORPORATION FINANCIAL HIGHLIGHTS
(Unaudited; Current year data is preliminary)
First Quarter Fiscal 1999
(In millions, except earnings per share)
FedEx Q1 &
Three Months Caliber Period
Ended May 25, 1997 -
Aug. 31, 1998 Aug. 16, 1997
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Revenue:
FedEx U.S. Domestic $2,497 $2,430
FedEx International 920 867
RPS 441 359
Viking 95 103
Other 129 108
--- ---
Total Revenue 4,082 3,867
Operating Expenses:
FedEx U.S. Domestic 2,292 2,189
FedEx International 906 844
RPS 392 325
Viking 88 108
Other 120 97
--- --
Total Operating Expenses 3,798 3,563
----- -----
Operating Income (Loss):
FedEx U.S. Domestic 205 241
FedEx International 14 23
RPS 49 34
Viking 7 (5)
Other 9 11
-- --
Total Operating Income 284 304
Other Income (Expense):
Interest, net (25) (30)
Other, net (4) 11
--- --
Total Other Income (Expense) (29) (19)
---- ----
Pretax Income 255 285
Provision for Income Taxes 106 120
--- ---
Net Income $149 $165
==== ====
Basic Earnings Per Share $1.01 $1.13
===== =====
Common Shares 147.434 146.337
Diluted Earnings Per Share $1.00 $1.11
===== =====
Common and Common Equivalent Shares 149.371 148.709
FDX CORPORATION OPERATING HIGHLIGHTS
(Unaudited; Current year data is preliminary)
First Quarter Fiscal 1999
FedEx Q1 &
Three Months Caliber Period
Ended May 25, 1997 -
Aug. 31, 1998 Aug. 16, 1997
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FEDEX
Operating Weekdays 66 64
AVERAGE DAILY EXPRESS VOLUME
Priority Overnight 1,261,442 1,228,089
Standard Overnight 618,997 629,998
2Day/Express Saver 834,658 826,091
Overnight/2Day/Express Saver Freight 10,035 7,930
------ -----
Total U.S.A. Express Volume 2,725,132 2,692,108
International Priority 265,108 246,478
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Total Avg Daily Express Volume 2,990,240 2,938,586
========= =========
YIELD PER EXPRESS PACKAGE
Priority Overnight $15.30 $15.41
Standard Overnight 12.35 12.17
2Day/Express Saver 9.88 10.59
Overnight/2Day/Express Saver Freight 151.02 144.64
------ ------
Total U.S.A. Express Yield $13.47 $13.55
International Priority 41.45 41.56
----- -----
Total Composite Yield $15.95 $15.90
====== ======
Avg Pounds per Express Package 8.8 8.3
Avg Revenue per Express Pound $1.81 $1.92
INT'L AIRFREIGHT (IXF/ATA)
Millions of Pounds 173.0 169.7
Revenue per Pound $0.77 $0.89
RPS
Operating Weekdays 64 58
Average Daily Volume 1,310,726 1,231,415
Composite Yield $5.25 $5.00
VIKING
Operating Weekdays 65 58
Shipments Per Day 12,751 16,983
Revenue/CWT $9.64 $8.69
FEDERAL EXPRESS CORPORATION FINANCIAL HIGHLIGHTS
(Unaudited; Current year data is preliminary)
First Quarter Fiscal 1999
(In millions)
Three Months Ended
August 31
-------------------
FINANCIAL RESULTS 1998 1997
----------------- ---- ----
Revenues $3,417 $3,297
Operating Expenses:
Salaries and benefits 1,541 1,451
Rentals and landing fees 313 274
Depreciation and amortization 220 202
Fuel 147 174
Maintenance and repairs 230 198
Other 747 734
--- ---
3,198 3,033
----- -----
Operating Income 219 264
Other Income (Expense):
Interest, net (22) (26)
Other, net (4) 9
--- -
(26) (17)
---- ----
Pretax Income 193 247
Provision for Income Taxes 80 104
--- ---
Net Income $113 $143
==== ====
--30--AR/na*
CONTACT: FDX Corp., Memphis
Media Contact: Shirlee Clark, 901/395-3463
Investor Contact: Jim Clippard, 901/395-3468
Worldwide Web Home Page: www.fdxcorp.com
KEYWORD: TENNESSEE
INDUSTRY KEYWORD: TRANSPORTATION TRAVEL/AIRLINES EARNINGS
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