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FedEx Archives: 1997 Press Releases

( BW)(FEDERAL-EXPRESS)(FDX) Federal Express Corporation fiscal 1997 and fourth quarter financial results

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--June 30, 1997--Federal Express Corp. today announced that net income for the quarter ended May 31 was $132.6 million, a 15% increase over last year's fourth quarter net income of $115.4 million. Earnings per share rose to $1.14 per share from $1.01 per share last year.
Revenues for the quarter were $3,068.3 million, 12% higher than last year's $2,737.7 million. Operating income increased to $251.3 million from $225.7 million, and pretax income rose to $230.6 million from $202.5 million a year ago.
"We closed the year with record quarterly earnings that were bolstered by strong performance in our international segment," said Executive Vice President and Chief Financial Officer Alan B. Graf, Jr. "Fourth quarter international operating profit increased 60% year-over-year, primarily due to continued healthy growth in our premium International Priority(R) (IP) service. IP volume rose 19% in the quarter, marking four consecutive years of double-digit growth for this express service."
International operating income for the fourth quarter was $59.4 million on international segment revenues of $854.9 million. In last year's fourth quarter, the international segment reported operating income of $37.2 million on revenues of $745.3 million.
The company's U.S. domestic operating income was $191.9 million on revenues of $2,213.4 million, compared to operating income of $188.5 million on revenues of $1,992.4 million in last year's fourth quarter.
"In the U.S., package volumes increased 10% year-over-year in the fourth quarter," said Graf. "This strong volume growth was accompanied by a 1.1% rise in our underlying revenue per package -- excluding any benefit from the excise tax expiration in last year's fourth quarter and the fuel surcharge in this year's fourth quarter. At the same time, U.S. cost per package rose 2.4%, primarily due to increased fuel and contract trucking expenses."
Compared to last year's fourth quarter, sales of aircraft noise-reduction kits contributed an incremental $14 million to the company's operating income.
FISCAL YEAR RESULTS For the full fiscal year, revenues were $11,519.8 million, a 12% increase over last year's $10,273.6 million. Fiscal 1997 net income was $361.2 million or $3.12 per share. Fiscal 1996 net income was $307.8 million or $2.69 per share.
Fiscal 1997 operating income for the company's international segment was $141.0 million on international revenues of $3,197.7 million compared to international operating income of $81.6 million in fiscal 1996 on revenues of $2,807.3 million.
U.S. domestic operating income for the year was $558.0 million on U.S. domestic revenues of $8,322.1 million compared to U.S. domestic operating income of $542.2 million in fiscal 1996 on revenues of $7,466.3 million.
"Our high performance team of employees around the world deserves credit for successfully delivering another year of improved earnings for our stockholders," said Graf. "We achieved a 16% increase in earnings per share while strategically investing in our integrated global network. Our fiscal 1997 results clearly demonstrate that FedEx's corporate vision is accurately focused."
Federal Express is the world's largest express transportation company, providing fast and reliable services for more than 2.8 million items in 212 countries each working day. The company employs approximately 130,000 people, has nearly 43,000 drop-off locations and operates more than 580 aircraft and 38,000 vehicles in its integrated global network. FedEx maintains electronic connections with more than 650,000 users via FedEx PowerShip(R), FedEx Ship(R) and FedEx interNetShip(SM). Federal Express reported revenues of $11.5 billion for its fiscal year ended May 31, 1997.
-0- *T FEDERAL EXPRESS CORPORATION FINANCIAL HIGHLIGHTS (Unaudited; Current year data is preliminary) Fourth Quarter Fiscal 1997 (In millions, except earnings per share and operating data) Three Months Ended Twelve Months Ended May 31, May 31, 1997 1996 1997 1996
FINANCIAL RESULTS Revenues $ 3,068.3 $ 2,737.7 $ 11,519.8 $ 10,273.6 Operating Expenses: Salaries and benefits 1,318.1 1,186.9 5,095.5 4,620.0 Rentals and landing fees 272.3 248.0 1,070.7 959.0 Depreciation and amortization 200.5 184.5 777.4 719.6 Fuel 173.0 158.6 690.4 578.6 Maintenance and repairs 178.0 177.3 724.4 617.7 Other 675.1 556.7 2,462.4 2,154.9 ------------ ------------ ------------ ------------ 2,817.0 2,512.0 10,820.8 9,649.8 Operating Income 251.3 225.7 699.0 623.8 Other Income (Expense): Interest, net (24.6) (22.7) (90.6) (95.6) Other, net 3.9 (0.5) 19.8 11.8 ------------ ------------ ------------ ------------ (20.7) (23.2) (70.8) (83.8) Pretax Income 230.6 202.5 628.2 540.0 Provision for Income Taxes 98.0 87.1 267.0 232.2 Net Income $ 132.6 $ 115.4 $ 361.2 $ 307.8 Earnings Per Share $ 1.14 $ 1.01 $ 3.12 $ 2.69 Common and Common Equivalent Shares 116,649 114,691 115,641 114,276 OPERATING DATA Operating Weekdays 64 65 254 256 AVERAGE DAILY EXPRESS VOLUME Priority Overnight(R) 1,223,070 1,118,285 1,178,822 1,067,352 Standard Overnight(R) 635,818 643,486 629,828 606,860 2Day(SM) 690,040 559,897 675,501 567,781 Overnight Freight(R)/ 2Day Freight(SM) 6,838 3,919 5,469 3,470 Total U.S.A. Express Volume 2,555,766 2,325,587 2,489,620 2,245,463 International Priority(R) 244,935 206,049 226,274 192,199 Total Average Daily Express Volume 2,800,701 2,531,636 2,715,894 2,437,662 YIELD PER EXPRESS PACKAGE Priority Overnight(R) $15.08 $15.27 $14.98 $15.26 Standard Overnight(R) 11.34 10.64 10.99 10.41 2Day(SM) 9.68 9.78 9.45 9.39 Overnight Freight(R)/ 2Day Freight(SM) 145.36 144.29 149.54 148.73 Total U.S.A. Express Yield $13.04 $12.89 $12.77 $12.67 International Priority(R) 40.75 40.43 40.91 40.58 Total Composite Yield $15.46 $15.13 $15.11 $14.87 Avg. Pounds per Express Package 7.5 6.4 7.2 6.4 Avg. Revenue per Express Pound $ 2.06 $ 2.36 $ 2.11 $ 2.31 INTERNATIONAL AIRFREIGHT (IXF/ATA) Millions of Pounds 167.1 143.2 645.7 548.9 Revenue per Pound $0.93 $0.93 $0.94 $1.01 *T --30--KH/na* EB/na MD/na CONTACT: Federal Express Corp., Memphis Greg Rossiter (Media), 901/395-4440 Shirlee Clark (Media), 901/395-3463 Becky Halvorson, (Investor), 901/395-3468 or Worldwide Web Home Page: http://www.fedex.com KEYWORD: TENNESSEE INDUSTRY KEYWORD: TRANSPORTATION EARNINGS URL: http://www.fedex.com REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or 800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473 Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: http://www.businesswire.com