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About FedEx
FedEx Archives: 1997 Press Releases
( BW)(FEDERAL-EXPRESS)(FDX) Federal Express Corporation third quarter fiscal 1997 financial resultsBusiness Editors MEMPHIS, Tenn.--(BUSINESS WIRE)--March 13, 1997--Federal Express Corporation today reported net income for the quarter ended February 28 of $63.0 million, or $0.54 per share, compared to net income of $27.2 million, or $0.24 per share in last year's third quarter. Revenues for the quarter rose 15 percent to $2,906.8 million from $2,535.5 million a year ago. Operating income was $132.9 million compared to $78.0 million, and pretax income was $109.5 million compared to $52.7 million a year ago. Commenting on the quarter's results, Executive Vice President and Chief Financial Officer Alan B. Graf, Jr. said, "We are pleased with the results for the quarter. Double-digit growth in our worldwide express package volume continued with average daily volume up 13 percent in the U.S. and 18 percent for International Priority(R) (IP). We also benefited from winter weather that wasn't nearly as severe as last year." International operating income for the third quarter was $33.8 million on international segment revenues of $791.0 million. In last year's third quarter, the international segment reported an operating loss of $12.7 million on revenues of $661.1 million. "In our international operations, we did a good job of increasing our international load factors by selling more non-express airfreight at rates comparable to last year's third quarter," said Graf. The company's U.S. domestic operating income for the quarter was $99.1 million on revenues of $2,115.8 million, compared to an operating income of $90.7 million on revenues of $1,874.4 million in last year's third quarter. Graf continued, "U.S. domestic yield per package increased 0.5 percent year-over-year, including the temporary two percent fuel surcharge implemented February 3, 1997. At the same time, cost per package edged up 0.2 percent for the quarter primarily due to continued higher fuel costs and maintenance expenses." This quarter, as well as last year's third quarter, benefited for two months from the expiration of a federal excise tax on the transportation of property by air. This relieved Federal Express of its obligation to pay the tax for that period. Federal Express is the world's largest express transportation company, providing fast and reliable services for more than 2.8 million items in 211 countries each working day. The company has 41,000 drop-off locations, employs approximately 127,000 people and operates more than 575 aircraft, 38,000 vehicles and 550,000 PowerShip(R) and FedEx Ship(TM) automated systems in its integrated global network. Federal Express reported revenues of $10.3 billion for its fiscal year ended May 31, 1996. -0- *T
CONTACT: Federal Express Corp., Memphis
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