FDX Corp. Reports First Quarter Earnings
MEMPHIS, Tenn.--(BUSINESS WIRE)--Sept. 16, 1999--FDX Corporation (NYSE:FDX - news) today reported earnings of $0.52 per diluted share for the quarter ended August 31, compared to $0.50 per share last year.
FDX Corp., parent of Federal Express Corp. (FedEx) and RPS, Inc. (RPS), reported the following consolidated results for the first quarter:
• Revenue of $4.3 billion, up 6% from $4.1 billion the previous year
-- Operating income of $284 million, level with a year ago
-- Net income of $159 million, up from last year's $149 million
''Year-over-year comparisons were difficult in the first quarter primarily due to higher fuel costs and declining hushkit sales with higher fuel prices negatively impacting operating income in the quarter by $27 million,'' said Executive Vice President and Chief Financial Officer Alan B. Graf, Jr. ''U.S. domestic average daily package volume at FedEx and RPS grew 3% and 4%, respectively, both below expectations for the quarter. U.S. domestic revenue per package for FedEx grew 2% over the same period last year while RPS's increased 5%. FedEx International Priority® service showed strong average daily volume growth of 12% and revenue per package growth of 2%.
''To offset the slower U.S. domestic volume trends and higher fuel prices, management at FedEx and RPS have taken actions to align their cost structures more closely with the lower growth rates,'' said Graf. ''These actions include more stringent cost controls and productivity enhancement programs. Even so, if current trends continue, fuel prices alone could negatively impact operating income in FY00 by more than $150 million compared to FY99. If lower U.S. domestic growth also continues, we anticipate that earnings for the second quarter and the full fiscal year may fall below current consensus analyst expectations, and FDX may not achieve a double-digit operating income growth rate for the year.''
FedEx
For the first quarter, FedEx reported the following:
-- Revenue of $3.6 billion, up 5% from last year's $3.4 billion
• Operating income of $209 million, compared to $219 million a year ago
Operating income from the sale of FedEx aircraft noise reduction kits was $15 million compared to $29 million in last year's first quarter. Total worldwide average daily package volume grew 4% over last year's first quarter and revenue per package increased more than 3%.
RPS
For the first quarter, RPS reported the following:
-- Revenue of $476 million, up 8% from last year's $441 million
-- Operating income of $51 million, up from $49 million a year ago
On a per-day basis, operating income at RPS was up 6% year over year.
Tax Rate
The company's effective tax rate of 39.5% in the quarter compares with a rate of 41.5% during last year's first quarter.
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. |
