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About FedEx
FedEx Archives: 1999 Press Releases
( BW)(TN-FDX-CORP)(FDX) FDX Corp. Reports Record Fourth Quarter Revenue and Earnings; Net Income Increases 30%Business Editors MEMPHIS, Tenn.--(BUSINESS WIRE)--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:
"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:
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(R) (IP) service grew 10% year-over-year, the highest quarterly IP growth rate this year," said Graf. "In the U.S., FedEx Priority Overnight(R) and FedEx Standard Overnight(R) 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. Corporate Overview FDX Corp., a $17 billion holding company, provides comprehensive transportation, logistics, e-commerce 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; Viking Freight Inc., a less-than-truckload carrier operating principally in the western U.S.; Roberts Express Inc., a critical-shipment carrier; and FDX Global Logistics Inc., a contract logistics provider.
FDX CORPORATION FINANCIAL HIGHLIGHTS
(Unaudited; Current year data is preliminary)
Fourth Quarter Fiscal 1999
(In millions, except earnings per share)
FedEx FYTD &
Three Months Ended Caliber
May 31 Twelve Months Period
------------------ Ended May 25,
1999 1998 May 31, 1999 1997 -
----- ----- ------------ May 31,
1998
-------
Revenue:
FedEx U.S. Domestic $2,641 $2,502 $10,171 $9,665
FedEx International 1,008 924 3,808 3,589
RPS 501 437 1,878 1,711
Viking 95 89 370 382
Other 138 126 546 526
---- ---- ---- ---
Total Revenue 4,383 4,078 16,773 15,873
Operating Expenses:
FedEx U.S. Domestic 2,393 2,263 9,388 8,913
FedEx International 950 902 3,720 3,505
RPS 430 391 1,647 1,540
Viking 89 83 346 354
Other 131 117 509 550
---- ---- ---- ---
Total Operating
Expenses 3,993 3,756 15,610 14,862
----- ----- ------ ------
Operating Income (Loss):
FedEx U.S. Domestic 249 239 783 753
FedEx International 58 21 88 84
RPS 71 47 231 171
Viking 7 6 25 28
Other 5 9 36 (25)
-- -- --- ----
Total Operating
Income 390 322 1,163 1,011
Other Income (Expense):
Interest, net (23) (29) (98) (124)
Other, net 5 1 (4) 13
-- -- --- --
Total Other Income
(Expense) (18) (28) (102) (111)
---- ---- ---- ----
Pretax Income 372 294 1,061 900
Provision for Income Taxes 151 123 430 402
---- ---- ---- ---
Income from Continuing
Operations $221 $171 $631 $498
==== ==== ==== ====
Income from Discontinued
Operations, Net of Income
Taxes - - - 5
-- -- -- --
Net Income $221 $171 $631 $503
==== ==== ===== ====
Basic Earnings Per Share:
Continuing operations $0.74 $0.58 $2.13 $1.70
Discontinued operations - - - 0.02
-- -- -- ----
Net Basic Earnings
Per Share $0.74 $0.58 $2.13 $1.72
===== ===== ===== =====
Common Shares 298 294 296 293
Diluted Earnings Per Share:
Continuing operations $0.73 $0.57 $2.10 $1.67
Discontinued operations - - - 0.02
-- -- -- ----
Net Diluted Earnings
Per Share $0.73 $0.57 $2.10 $1.69
===== ===== ===== =====
Common and Common Equivalent
Shares 304 299 301 298
FDX CORPORATION OPERATING HIGHLIGHTS
(Unaudited; Current year data is preliminary)
Fourth Quarter Fiscal 1999
FedEx FYTD &
Three Months Twelve Months Caliber Period
Ended May 31 Ended May 31 May 25, 1997 -
1999 1998 1999 May 31, 1998
-------------- ------------- -------------
FEDEX
Operating Weekdays 65 64 256 254
AVERAGE DAILY EXPRESS VOLUME
Priority Overnight 1,332,018 1,295,566 1,306,138 1,253,640
Standard Overnight 671,115 645,091 651,403 632,222
2Day/Express Saver 883,526 872,820 893,569 871,548
1Day/2Day/3Day
Freight 11,366 10,027 11,004 9,194
------ ------ ------ -----
Total U.S.A.
Express Volume 2,898,025 2,823,504 2,862,114 2,766,604
International
Priority 297,363 271,152 281,664 259,395
------- ------- ------- -------
Total Avg Daily
Express Volume 3,195,388 3,094,656 3,143,778 3,025,999
========= ========= ========= =========
YIELD PER EXPRESS PACKAGE
Priority Overnight $15.41 $15.31 $15.31 $15.24
Standard Overnight 12.45 12.33 12.40 12.19
2Day/Express Saver 10.19 9.89 9.93 9.84
1Day/2Day/3Day
Freight 168.33 145.20 156.14 144.36
------ ------ ------ ------
Total U.S.A.
Express Yield $13.73 $13.42 $13.51 $13.27
International
Priority 41.45 41.10 41.87 41.45
----- ----- ------ -----
Total Composite
Yield $16.31 $15.84 $16.05 $15.69
====== ====== ====== ======
Avg Pounds per
Express Package 8.9 8.6 8.9 8.5
Avg Revenue per
Express Pound $1.83 $1.85 $1.80 $1.84
INT'L AIRFREIGHT (IXF/ATA)
Millions of Pounds 165.8 176.4 674.1 703.6
Revenue per Pound $0.78 $0.80 $0.79 $0.85
RPS
Operating Weekdays 65 64 253 256
Average Daily Volume 1,404,406 1,321,394 1,385,379 1,326,189
Composite Yield $5.49 $5.17 $5.36 $5.04
VIKING
Operating Weekdays 65 64 253 256
Shipments Per Day 12,191 12,023 12,461 13,287
Revenue/CWT $10.33 $9.61 $10.00 $9.28
FEDERAL EXPRESS CORPORATION FINANCIAL HIGHLIGHTS
(Unaudited; Current year data is preliminary)
Fourth Quarter Fiscal 1999
(In millions)
Three Months Ended Twelve Months Ended
May 31 May 31
------------------ -------------------
FINANCIAL RESULTS 1999 1998 1999 1998
----------------- ---- ---- ---- ----
Revenues $ 3,649 $ 3,426 $ 13,979 $ 13,255
Operating Expenses:
Salaries and benefits 1,596 1,508 6,225 5,832
Rentals and landing fees 333 309 1,318 1,221
Depreciation and
amortization 237 219 912 845
Fuel 152 167 594 709
Maintenance and repairs 222 214 888 808
Other 803 748 3,171 2,989
Merger Expenses -- -- -- 14
-------- -------- -------- --------
3,343 3,165 13,108 12,418
-------- -------- -------- --------
Operating Income 306 261 871 837
Other Income (Expense):
Interest, net (21) (26) (86) (110)
Other, net (1) (0) (14) 8
-------- -------- -------- --------
(22) (26) (100) (102)
-------- -------- -------- --------
Pretax Income 284 235 771 735
Provision for Income Taxes 115 99 312 314
-------- -------- -------- --------
Net Income $ 169 $ 136 $ 459 $ 421
======== ======== ======== ========
--30--AR/na*
CONTACT: FDX Corp., Memphis
Media Contact: Shirlee Clark, 901/395-3463
or
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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