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About FedEx
FedEx Archives: 2000 Press Releases
( BW)(TN-FEDEX-CORP)(FDX) FedEx Corp. Reports Higher First Quarter Earnings, Earnings Per Share Increases 12%, IP Revenue up 20%Business Editors MEMPHIS, Tenn.--(BUSINESS WIRE)--Sept. 19, 2000--FedEx Corporation (NYSE:FDX) today reported earnings increased to $0.58 per diluted share for the quarter ended August 31, up 12% from $0.52 per share last year. FedEx Corp. reported the following consolidated results for the first quarter:
"Our solid first quarter financial results can be attributed to three very positive trends: first, increased volume growth in most areas of our business; second, improved revenue per package at FedEx Express; and, third, a continued focus on reducing costs and increasing workforce productivity while providing convenient customer solutions," said Executive Vice President and Chief Financial Officer Alan B. Graf, Jr. Revenue from FedEx International Priority(R) (IP) shipments continued to grow at the fastest pace, exceeding 20% for the third consecutive quarter. "We have recently made further enhancements to our unparalleled international network, due to increased demand from customers for reduced transit times, later customer pickups and earlier deliveries," said Graf. "These enhancements, which include improved connectivity between Europe and Asia, connection of the Scandinavian countries to the FedEx EuroOne network and two additional flights between the U.S. and our hub at Charles de Gaulle airport in Paris, France, significantly improve service to our customers without materially increasing costs. "U.S. domestic revenue increased in part due to our new bundling and branding strategies gaining traction," said Graf. "Average daily volume growth rates for FedEx Express' U.S. domestic overnight box and U.S. domestic deferred services increased more than 4% each, while FedEx Ground's growth rate of over 6% was the best in over a year. In addition to the volume growth in these services, our yield strategy continues to be effective. Our total yield or revenue per package at FedEx Express increased a strong 6%. "Our consolidated FedEx sales force received additional training to cross-sell express and ground services during the quarter," said Graf. "This `customer-solutions' approach was evident when FedEx Home Delivery and FedEx Express successfully delivered 250,000 Harry Potter books for Amazon.com on the first day of release with a 99.97% service level. The introduction of new e-commerce services--including FedEx eCommerce Builder, Global Trade Manager and FedEx Ship Manager--has also given our sales force new tools to help all customers, particularly small- and medium-sized companies, access new markets and manage their businesses more efficiently." "Fuel remains a concern, as higher fuel prices increased fuel expense by approximately $55 million compared to last year's first quarter," said Graf. "However, we believe that fuel surcharges and hedging activity will continue to mitigate fuel risk. Management continues to scrutinize the capital and expense needs of each operation, and we maintain our belief that fiscal 2001 will be a record year for sales, profit and cash flow." FedEx Express For the first quarter, FedEx Express reported: -- Revenue of $3.9 billion, up 9% from last year's $3.6 billion -- Operating income of $258 million, up 23% from $209 million a year ago Operating income from the sale of aircraft noise reduction kits was less than $1 million compared to $15 million in last year's first quarter. FedEx Ground For the first quarter, FedEx Ground reported: -- Revenue of $543 million, up 14% from last year's $476 million -- Operating income of $43 million, down 15% from $51 million a year ago FedEx Ground's results benefited from three additional shipping days in this year's first quarter. Operating income included $12 million of losses associated with the operation and expansion of the company's FedEx Home Delivery service as well as additional expenses associated with rebranding. Tax Rate The company's effective tax rate of 38.5% in the quarter compares with a rate of 39.5% during last year's first quarter. The company does not anticipate significant changes to this rate for the foreseeable future. Corporate Overview 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. Additional information and operating data is contained in the company's FY2000 annual report and Form 10-K and first quarter FY2001 Statistical Book. These materials, as well as a Webcast of the earnings release conference call to be held at 10:30 a.m. EDT on September 19, are available on the company's Web site at www.fedex.com/us/investorrelations. A replay of the conference call Webcast will be posted on our Web site following the call and will remain available for approximately two weeks. 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.
FEDEX CORP. FINANCIAL HIGHLIGHTS
(Unaudited)
First Quarter Fiscal 2001
(In millions, except earnings per share)
Three Months Ended
August 31
------------------
2000 1999
---- ----
Revenue:
FedEx Express $3,916 $3,587
FedEx Ground 543 476
Other 320 257
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Total Revenue 4,779 4,320
Operating Expenses:
Salaries and employee benefits 1,995 1,831
Purchased transportation 435 390
Rentals and landing fees 390 367
Depreciation and amortization 303 277
Fuel 250 185
Maintenance and repairs 310 255
Other 785 731
------- -------
Total Operating Expenses 4,468 4,036
Operating Income:
FedEx Express 258 209
FedEx Ground 43 51
Other 10 24
------- -------
Total Operating Income 311 284
Other Income (Expense):
Interest, net (33) (21)
Other, net (4) --
------- -------
Total Other Income (Expense) (37) (21)
------- -------
Pretax Income 274 263
Provision for Income Taxes 105 104
------- -------
Net Income $169 $159
======= =======
Basic Earnings Per Share $0.59 $0.53
======= =======
Weighted Average Common Shares 285 298
Diluted Earnings Per Share $0.58 $0.52
======= =======
Weighted Average Common and
Common Equivalent Shares 289 304
Cash Earnings Per Share(1) $1.63 $1.44
EBITDA(2) $610 $561
Capital Expenditures, Incl. Equivalent Capital(3) $341 $601
1 - Cash earnings per share is net income plus depreciation and
amortization per diluted share.
2 - EBITDA is earnings before interest, taxes, depreciation and
amortization.
3 - Equivalent capital represents the amount of capital the
company would have expended to purchase certain assets, principally
aircraft, had their use not been obtained through operating leases.
FEDEX CORP. OPERATING HIGHLIGHTS
(Unaudited)
First Quarter Fiscal 2001
Three Months Ended
August 31
------------------
FEDEX EXPRESS 2000 1999
------------- ---- ----
Operating Weekdays 65 65
AVG DAILY VOLUME / POUNDS
Average Daily Package Volume:
U.S. Overnight Box(1) 1,254,158 1,204,800
U.S. Overnight Envelope(2) 757,751 748,265
U.S. Deferred 876,381 839,140
International Priority 337,720 296,866
--------- ---------
Total Average Daily Packages 3,226,010 3,089,071
========= =========
Average Daily Freight Pounds (000s):
U.S 4,369 4,555
International 2,312 2,505
--------- ---------
Total Avg Daily Freight Pounds 6,681 7,060
========= =========
YIELD
Revenue Per Package:
U.S. Overnight Box(1) $18.15 $17.62
U.S. Overnight Envelope(2) 9.59 9.31
U.S. Deferred 10.85 10.25
International Priority 44.80 42.42
--------- ---------
Composite Package Yield $16.95 $15.99
========= =========
Revenue Per Freight Pound:
U.S $0.57 $0.44
International 0.76 0.78
--------- ---------
Composite Freight Yield $0.64 $0.56
========= =========
FEDEX GROUND
Operating Weekdays 66 63
Average Daily Package Volume 1,451,518 1,365,138
Yield $5.67 $5.53
FEDEX CORP
Average Full-Time Equivalents (FTEs) 168,651 157,781
1 - The U.S. Overnight Box category includes packages exceeding 8
ounces in weight.
2 - The U.S. Overnight Envelope category includes envelopes
weighing 8 ounces or less.
FEDEX CORP. CONSOLIDATED BALANCE SHEET
First Quarter Fiscal 2001
(In millions)
Aug. 31, 2000
(Unaudited) May 31, 2000
------------- ------------
ASSETS
Current Assets:
Cash and cash equivalents $ 177 $ 68
Other current assets 3,232 3,217
------- -------
Total Current Assets 3,409 3,285
Net Property and Equipment 7,117 7,083
Other Assets 1,232 1,159
------- -------
$11,758 $11,527
======= =======
LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current Liabilities:
Short-term debt plus the current
portion of long-term debt $ 23 $ 7
Other current liabilities 2,814 2,884
------- -------
Total Current Liabilities 2,837 2,891
Long-Term Debt, Less Current Portion 1,895 1,776
Deferred Income Taxes and Other Liabilities 2,064 2,075
Total Common Stockholders' Investment 4,962 4,785
======= =======
$11,758 $11,527
======= =======
FEDEX EXPRESS FINANCIAL HIGHLIGHTS
(Unaudited)
First Quarter Fiscal 2001
(In millions, except FTEs)
Three Months Ended
August 31, 2000
---------------
Revenue $3,916
Operating Expenses:
Salaries and employee benefits 1,595
Purchased transportation 150
Rentals and landing fees 344
Depreciation and amortization 197
Fuel 241
Maintenance and repairs 268
Intercompany charges 327
Other 536
---
Total Operating Expenses 3,658
Operating Income $258
EBITDA $453
Average Full-Time Equivalents (000s) 124
FEDEX GROUND FINANCIAL HIGHLIGHTS
(Unaudited)
First Quarter Fiscal 2001
(In millions)
Three Months Ended
August 31, 2000
---------------
Revenue $543
Operating Expenses:
Salaries and employee benefits 108
Purchased transportation 218
Rentals and landing fees 14
Depreciation and amortization 24
Fuel 1
Maintenance and repairs 16
Intercompany charges 53
Other 66
--
Total Operating Expenses 500
Operating Income $43
EBITDA $67
--30--SL/na*
CONTACT: FedEx Corporation, Memphis
Media Contact: Shirlee Clark, 901/818-7463
or
Investor Contact: Jim Clippard, 901/818-7468
Worldwide Web Home Page: www.fedex.com
KEYWORD: TENNESSEE INTERNATIONAL EUROPE ASIA PACIFIC
INDUSTRY KEYWORD: AIRLINES TRAVEL CONFERENCE CALLS EARNINGS
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