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Press Releases
HONG KONG, March 22, 1999 - FDX Corporation recently reported earnings
increased to US$0.52 per diluted share for the quarter ended February
28, up from US$0.12 per share last year. Excluding this year's cost
of contingency plans related to the FedEx pilot negotiations and
last year's merger expenses related to the Caliber acquisition,
diluted earnings for the quarter were US$0.87 per share, up from
US$0.65 per share a year ago.
FDX Corp., parent of Federal Express Corp. (FedEx) and RPS, Inc.
(RPS), reported the following consolidated results for the third
quarter:
- Revenue of US$4.1 billion, up 3% from US$4.0 billion the previous
year
- Operating income of US$152 million, up 59% from US$95 million
a year ago
- Net income of US$78 million, up from last year's US$18 million
"FDX Corp. is benefiting from the accelerated move to fast-cycle
production and distribution methods, the growth in electronic commerce
and supply chain reengineering," said Chairman, President and Chief
Executive Officer Frederick W. Smith. "Our customer base, which
includes a significant number of high growth, high value-added companies,
is increasingly relying upon FDX to be their preferred source for
global transportation, technology and logistics solutions."
"Given the continued strength of FDX's operating performance and
management's assessment of future prospects, the FDX Board of Directors
has authorized a stock split effected in the form of a stock dividend
payable at the rate of one share for each share outstanding," said
Smith.
The Record Date for the stock distribution will be April 15, 1999,
with a Payment Date on May 6, 1999.
FedEx
For the third quarter, FedEx reported revenue of US$3.4 billion,
up from last year's US$3.2 billion. Operating income was US$95 million
compared to US$98 million a year ago. Operating income totaled US$176
million excluding US$81 million of pilot contingency costs, up 57%
compared to US$112 million last year excluding US$14 million of
merger expenses.
FedEx U.S. domestic revenue grew to US$2.5 billion for the quarter,
up from US$2.4 billion last year. FedEx U.S. domestic operating
income was US$112 million, up 7% from US$105 million a year ago.
Excluding this year's U.S. domestic segment contingency plan cost
of approximately US$52 million and last year's US$14 million merger
cost, U.S. domestic operating income was US$164 million, up 38%
year-over-year. Income from the sale of FedEx aircraft noise reduction
kits, which is included in operating income, was US$24 million compared
to US$26 million a year ago.
International revenue increased to US$917 million for the quarter,
up 7% from US$859 million last year. The international operating
loss was US$17 million compared to a US$7 million loss a year ago.
Excluding the approximate US$29 million international segment cost
of contingency plans, FedEx earned US$12 million in its international
operations in the quarter. FedEx International Priority®
grew 10% year-over-year, up from first and second quarter growth
rates. In addition to this growth, improvements were realized from
fuel price declines and cost controls. However, continued weakness
in freight pounds and yields offset these improvements.
"FedEx's renewed emphasis on selling and marketing higher-yielding
overnight express services is clearly benefiting the bottom line,"
said FDX Corp. Executive Vice President and Chief Financial Officer
Alan B. Graf, Jr. "FedEx Priority Overnight® and
FedEx Standard Overnight® box volume growth increased
8% over last year's third quarter, continuing to outpace the growth
of lower-yielding deferred services. Additionally, stringent cost
controls, lower fuel prices, productivity gains and improved service
levels are resulting in improved earnings."
RPS
For the third quarter, RPS reported revenue of US$455 million,
compared to last year's US$496 million and operating income of US$50
million, up from US$36 million a year ago.
Revenue increased 11% on a per-day basis while operating income
improved 68% on a per day basis. Year-over-year comparisons are
affected by 13 fewer shipping days in this year's third quarter
and the inclusion of part of RPS's peak volume period during last
year's third quarter. Revenue per package grew a strong 8.9% year
over year during the quarter.
FDX Corp. Tax Rate
The Company's quarterly and year-to-date effective tax rates are
lower than the prior comparable periods, primarily due to the combination
of stronger than expected year-to-date results from international
operations and lower worldwide income taxes on foreign earnings.
The tax rate change increased third quarter and year-to-date earnings
per share by US$0.05.
FDX Corp., a US$16 billion holding company, provides comprehensive
transportation, logistics and supply chain management solutions.
FDX Corp.'s principal operating subsidiaries are Federal Express
Corp., the world's largest express transportation company; RPS,
Inc., a business-to-business ground small package carrier; Viking
Freight, Inc., a less-than-truckload carrier operating principally
in the western U.S.; Roberts Express, Inc., a critical-shipment
carrier; and FDX Global Logistics, Inc., a contract logistics provider.
Certain statements in this press release may be considered forward-looking
statements about management's views with respect to future events
and financial performance, which are subject to risks and uncertainties.
Actual results may differ from those identified in the forward-looking
statements because of important factors such as economic and competitive
conditions in the express markets, matching capacity to volume levels
and other factors which can be found in FDX Corp.'s and its subsidiaries'
press releases and filings with the SEC, including Annual Reports,
Form 10-Ks and Form 10-Qs.
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