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About FedEx
FedEx Archives: 1999 Press Releases
( BW)(TN-FDX-CORP)(FDX) FDX Corp. Reports First Quarter EarningsBusiness Editors MEMPHIS, Tenn.--(BUSINESS WIRE)--Sept. 16, 1999--FDX Corporation (NYSE:FDX) today reported earnings of $0.52 per diluted share for the quarter ended August 31, compared to $0.50 per share last year. FDX Corp., parent of Federal Express Corp. (FedEx) and RPS, Inc. (RPS), reported the following consolidated results for the first quarter:
"Year-over-year comparisons were difficult in the first quarter primarily due to higher fuel costs and declining hushkit sales with higher fuel prices negatively impacting operating income in the quarter by $27 million," said Executive Vice President and Chief Financial Officer Alan B. Graf, Jr. "U.S. domestic average daily package volume at FedEx and RPS grew 3% and 4%, respectively, both below expectations for the quarter. U.S. domestic revenue per package for FedEx grew 2% over the same period last year while RPS's increased 5%. FedEx International Priority(R) service showed strong average daily volume growth of 12% and revenue per package growth of 2%. "To offset the slower U.S. domestic volume trends and higher fuel prices, management at FedEx and RPS have taken actions to align their cost structures more closely with the lower growth rates," said Graf. "These actions include more stringent cost controls and productivity enhancement programs. Even so, if current trends continue, fuel prices alone could negatively impact operating income in FY00 by more than $150 million compared to FY99. If lower U.S. domestic growth also continues, we anticipate that earnings for the second quarter and the full fiscal year may fall below current consensus analyst expectations, and FDX may not achieve a double-digit operating income growth rate for the year." FedEx For the first quarter, FedEx reported the following:
Operating income from the sale of FedEx aircraft noise reduction kits was $15 million compared to $29 million in last year's first quarter. Total worldwide average daily package volume grew 4% over last year's first quarter and revenue per package increased more than 3%. RPS For the first quarter, RPS reported the following:
On a per-day basis, operating income at RPS was up 6% year over year. Tax Rate The company's effective tax rate of 39.5% in the quarter compares with a rate of 41.5% during last year's first quarter. 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., North America's second largest 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 FDX 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; U.S. and international economic conditions; technology developments that impact demand for the company's services; 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 2000
(In millions, except earnings per share)
Three Months Ended
August 31
-----------------------------
1999 1998
---- ----
Revenue:
FedEx $ 3,587 $ 3,417
RPS 476 441
Other 257 224
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Total Revenue 4,320 4,082
Operating Income:
FedEx 209 219
RPS 51 49
Other 24 16
------- -------
Total Operating Income 284 284
Other Income (Expense):
Interest, net (21) (25)
Other, net -- (4)
------- -------
Total Other Income (Expense) (21) (29)
------- -------
Pretax Income 263 255
Provision for Income Taxes 104 106
------- -------
Net Income $ 159 $ 149
======= =======
Basic Earnings Per Share $ 0.53 $ 0.51
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Common Shares 298 295
Diluted Earnings Per Share $ 0.52 $ 0.50
======= =======
Common and Common Equivalent Shares 304 299
FDX CORPORATION OPERATING HIGHLIGHTS
(Unaudited; Current year data is preliminary)
First Quarter Fiscal 2000
Three Months Ended
August 31
----------------------
1999 1998
---- ----
FEDEX
Operating Weekdays 65 66
AVG DAILY VOLUME / POUNDS
Average Daily Package Volume:
U.S. Overnight 1,953,065 1,880,439
U.S. Deferred 839,140 834,658
International Priority 296,866 265,108
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Total Average Daily Packages 3,089,071 2,980,205
========= =========
Average Daily Freight Pounds (000s):
U.S 4,555 3,930
International 2,505 2,620
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Total Avg Daily Freight Pounds 7,060 6,550
===== =====
YIELD
Revenue Per Package:
U.S. Overnight $ 14.44 $ 14.33
U.S. Deferred 10.25 9.88
International Priority 42.42 41.45
----- -----
Composite Package Yield $ 15.99 $ 15.50
===== =====
Revenue Per Freight Pound:
U.S $ 0.44 $ 0.39
International 0.78 0.77
---- ----
Composite Freight Yield $ 0.56 $ 0.54
==== ====
RPS
Operating Weekdays 63 64
Average Daily Package Volume 1,365,138 1,310,726
Yield $ 5.53 $ 5.25
FEDERAL EXPRESS CORPORATION FINANCIAL HIGHLIGHTS
(Unaudited; Current year data is preliminary)
First Quarter Fiscal 2000
(In millions)
Three Months Ended
August 31
----------------------
FINANCIAL RESULTS 1999 1998 % Change
----------------- ----- ----- --------
Revenues $3,587 $3,417
Operating Expenses:
Salaries and employee benefits 1,609 1,541
Rentals and landing fees 347 313
Depreciation and amortization 242 220
Fuel 181 147
Maintenance and repairs 238 229
Other 761 748
------ ------
3,378 3,198
------ ------
Operating Income 209 219
Other Income (Expense):
Interest, net (19) (22)
Other, net (1) (4)
------ ------
(20) (26)
------ ------
Pretax Income 189 193
Provision for Income Taxes 75 80
------ ------
Net Income $114 $113
====== ======
--30--AR/na*
CONTACT: Federal Express Corp., Memphis
Media Contact:
Shirlee Clark, 901/818-7463
or
Investor Contact:
Jim Clippard, 901/818-7468
Worldwide Web Home Page: www.fdxcorp.com
KEYWORD: TENNESSEE
INDUSTRY KEYWORD: TRANSPORTATION TRAVEL/AIRLINES EARNINGS
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