Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : FedEx (FDX) -- Ignore unavailable to you. Want to Upgrade?

To: Darryl Olson who wrote (198)	9/24/1998 9:12:00 AM
From: pvz	Read Replies (1) \| Respond to of 524

Thursday September 24, 8:01 am Eastern Time Company Press Release FDX Corp. Reports First Quarter Earnings MEMPHIS, Tenn.--(BUSINESS WIRE)--Sept. 24, 1998--FDX Corp. (NYSE:FDX - news), parent of Federal Express Corp. (FedEx) and RPS, Inc. (RPS), today reported that earnings for the quarter ended August 31 were $1.00 per diluted share, compared to $0.86 per share last year (or $1.11 per share if the benefit of approximately $0.25 resulting from last year's UPS strike was included). Revenues for the quarter were $4.1 billion, 6% higher than last year's $3.9 billion. Operating income was $284 million compared to $304 million and net income was $149 million compared to $165 million a year ago. The results for last year include business generated by the UPS strike. Adjusting for this effect, this year's quarterly revenue and operating income would have increased 10% and 15%, respectively. ''These solid financial results prove that FDX is benefiting from its diversified portfolio of transportation companies,'' said Chairman, President and Chief Executive Officer Frederick W. Smith. ''The combined U.S. domestic growth for FedEx and RPS coupled with the successful implementation of yield management actions, productivity enhancements and stringent cost reduction initiatives more than offset the impact of the difficult international business environment.'' The company reported that FedEx's total revenues for the quarter were $3.4 billion, 4% higher than last year's $3.3 billion. Operating income for the quarter was $219 million compared to $264 million and net income was $113 million compared to $143 million a year ago. FedEx's first quarter U.S. domestic revenue was $2.5 billion compared to $2.4 billion last year, and operating income was $205 million compared to $241 million a year ago. Excluding the impact of the additional volume from the 12 operating days of the UPS strike (approximately $150 million in revenue and $50 million in operating income), U.S. domestic revenue and operating income increased 10% and 7%, respectively. Sales of FedEx's aircraft noise reduction kits contributed $29 million to first quarter U.S. domestic operating income compared to $36 million in last year's first quarter. FedEx's international operations remained profitable, despite weak international conditions, as fuel price declines, cost controls and price increases partially offset reduced International Priority(R) (IP) growth rates, currency exchange impacts, the effect of increased network capacity initiated in September 1997 and declining airfreight demand and yields. International revenue for the first quarter increased to $920 million from $867 million last year, while international operating income was $14 million compared to $23 million a year ago. RPS's revenues for the quarter were $441 million, up 23% from last year's $359 million. On a per day basis, revenue increased 11% after adjusting for six additional shipping days in this year's first quarter. Operating income for the quarter was $49 million, 41% higher than last year's $34 million. Operating income improved 28% over last year's first quarter after adjusting for the shipping day difference. Last year's first quarter revenue and operating income included approximately $21 million and $6 million, respectively, related to the UPS strike. Viking Freight, Inc.'s revenues for the quarter were $95 million compared to $103 million in last year's first quarter. First quarter operating income improved to $7 million compared to an operating loss of $5 million a year ago. The prior period included the results of Central Freight Lines, Inc., Spartan Express, Inc. and Coles Express, Inc., each of which were sold or shut down. ''We are addressing the impact of difficult international economic conditions by aggressively managing costs and reducing capital expenditures until conditions warrant additional investment,'' said Smith. ''We remain confident that FDX's business strategy is correct.''