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About FedEx
FedEx Archives: 1999 Press Releases
( BW)(TN-FDX-CORP)(FDX) FDX Corp. Reports Second Quarter EarningsBusiness Editors MEMPHIS, Tenn.--(BUSINESS WIRE)--Dec. 16, 1999--FDX Corporation (NYSE: FDX), parent of Federal Express Corp. (FedEx) and RPS, Inc. (RPS), today reported earnings of $0.57 per diluted share for the quarter ended November 30, compared to $0.61 per share last year. FDX Corp. reported the following consolidated results for the second quarter:
"FDX underperformed its potential in the quarter principally due to higher fuel prices, which negatively impacted operating income by $55 million, and low U.S. domestic growth at FedEx," said Executive Vice President and Chief Financial Officer Alan B. Graf, Jr. "Our revised fuel forecast indicates that fuel prices could negatively impact expenses in FY00 by over $200 million compared to FY99. This includes the effects of hedging actions which limit our exposure to higher fuel prices." "While we are pleased with the 13% volume growth in our FedEx International Priority(R) service," said Graf, "we have not achieved the level of U.S. domestic growth that we expected. In an effort to improve our U.S. domestic growth, the FedEx sales force is being realigned. Changes will include a greater emphasis on small and medium sized customers as well as modifications to the sales compensation incentive program to target higher-yielding box growth. We have also reduced planned capital expenditures by $200 million and will continue to execute cost containment and productivity enhancement programs which are partially offsetting the effects of higher fuel costs and lower U.S. domestic growth." Strong growth in the other operating companies during the quarter was a result of fine performances at Roberts Express and Viking Freight coupled with the addition of Caribbean Transportation Services to the FDX Logistics organization in September. Since the company announced its share repurchase program in September, 8.9 million shares of the 15 million shares authorized for repurchase have been acquired. FedEx For the second quarter, FedEx reported:
Operating income from the sale of FedEx aircraft noise reduction kits was $14 million compared to $28 million in last year's second quarter. Total worldwide average daily package volume grew 4% over last year's second quarter and revenue per package increased 3%. RPS For the second quarter, RPS reported:
Average daily package volume at RPS increased more than 5% and revenue per package improved 3%. 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)
Second Quarter Fiscal 2000
(In millions, except earnings per share)
Three Months Ended Six Months Ended
November 30 November 30
--------------------------
1999 1998 1999 1998
---- ---- ---- ----
Revenue:
FedEx $3,736 $3,482 $7,323 $6,899
RPS 521 481 997 922
Other 313 246 570 471
---- ---- ---- ----
Total Revenue 4,570 4,209 8,890 8,292
Operating Expenses:
FedEx 3,525 3,231 6,903 6,429
RPS 455 420 881 812
Other 285 221 518 430
---- ---- ---- ----
Total Operating Expenses 4,265 3,872 8,302 7,671
Operating Income:
FedEx 211 251 420 470
RPS 66 61 116 110
Other 28 25 52 41
--- --- --- ---
Total Operating Income 305 337 588 621
Other Income (Expense):
Interest, net (27) (25) (47) (50)
Other, net 5 0 5 (3)
-- -- -- ---
Total Other Income (Expense) (22) (25) (42) (53)
---- ---- ---- ----
-
Pretax Income 283 312 546 568
-
Provision for Income Taxes 112 129 216 236
---- ---- ---- ---
Net Income $171 $183 $330 $332
===== ===== ===== ====
Basic Earnings Per Share $0.58 $0.62 $1.12 $1.13
====== ====== ====== =====
Common Shares 293 295 296 295
Diluted Earnings Per Share $0.57 $0.61 $1.10 $1.11
====== ====== ====== =====
Common and Common Equivalent Shares 298 298 301 298
FDX CORPORATION OPERATING HIGHLIGHTS
(Unaudited; Current year data is preliminary)
Second Quarter Fiscal 2000
Three Months Ended Six Months Ended
November 30 November 30
-------------- --------------
1999 1998 1999 1998
---- ---- ---- ----
FEDEX
Operating Weekdays 63 63 128 129
AVG DAILY VOLUME / POUNDS
Average Daily Package Volume:
U.S. Overnight 2,010,864 1,954,210 1,981,513 1,916,467
U.S. Deferred 913,058 894,757 875,521 864,009
International Priority 322,814 284,970 309,638 274,808
--------- --------- --------- ---------
Total Average Daily Packages 3,246,736 3,133,937 3,166,672 3,055,284
========= ========= ========= =========
Average Daily Freight Pounds
(000s):
U.S 5,072 4,480 4,810 4,199
International 2,574 2,719 2,539 2,669
--------- --------- --------- ---------
Total Avg Daily Freight
Pounds 7,646 7,199 7,349 6,868
========= ========= ========= =========
YIELD
Revenue Per Package:
U.S. Overnight $ 14.56 $ 14.44 $ 14.50 $ 14.38
U.S. Deferred 10.22 9.89 10.24 9.89
International Priority 43.31 42.45 42.88 41.96
--------- --------- --------- ---------
Composite Package Yield $ 16.20 $ 15.69 $ 16.09 $ 15.59
========= ========= ========= =========
Revenue Per Freight Pound:
U.S $ 0.45 $ 0.38 $ 0.45 $ 0.38
International 0.78 0.81 0.78 0.79
--------- --------- --------- ---------
Composite Freight Yield $ 0.56 $ 0.54 $ 0.56 $ 0.54
========= ========= ========= =========
RPS
Operating Weekdays 62 62 125 126
Average Daily Package Volume 1,541,271 1,463,808 1,452,500 1,386,052
Yield $ 5.45 $ 5.30 $ 5.49 $ 5.28
FEDERAL EXPRESS CORPORATION FINANCIAL HIGHLIGHTS
(Unaudited; Current year data is preliminary)
Second Quarter Fiscal 2000
(In millions)
Three Months Ended Six Months Ended
November 30 November 30
----------------------------
FINANCIAL RESULTS 1999 1998 1999 1998
----------------- ----- ----- ----- ----
Revenues $3,736 $3,482 $7,323 $6,899
Operating Expenses:
Salaries and benefits 1,640 1,542 3,249 3,082
Rentals and landing fees 365 328 712 642
Depreciation and amortization 245 221 487 442
Fuel 217 151 398 297
Maintenance and repairs 258 218 497 447
Other 800 771 1,560 1,519
---- ---- ------ -----
3,525 3,231 6,903 6,429
------ ------ ------ -----
Operating Income 211 251 420 470
Other Income (Expense):
Interest, net (19) (21) (38) (43)
Other, net 4 (2) 3 (6)
-- --- -- ---
(15) (23) (35) (49)
---- ---- ---- ----
Pretax Income 196 228 385 421
Provision for Income Taxes 77 94 152 175
--- --- ---- ---
Net Income $119 $134 $233 $246
===== ===== ===== ====
--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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