FedEx Corporation has reported earnings of $0.92 per diluted
share for the quarter ended 31 May 2003 compared to $0.78
per diluted share reported last year.
reported the following consolidated results for the fourth
Revenue of $5.83 billion, up 8 per cent from $5.42 billion
the previous year.
Operating income of $492 million, up 18 per cent from
$416 million a year ago.
Net income of $280 million, up 19 per cent from last
year''s $236 million.
total average daily package volume at FedEx Express and
FedEx Ground grew a combined 5 per cent year over year
for the quarter, due to continued strong growth at Ground
and in international express shipments.
the full fiscal year, FedEx reported earnings of $2.74
per diluted share. Last year''s reported earnings were
$2.34 per diluted share including a non-cash charge from
an accounting change of $0.05. Additional consolidated
results for the fiscal year were:
Revenue of $22.5 billion, up 9 per cent from $20.6 billion
the previous year.
Operating income of $1.47 billion, up 11 per cent from
$1.32 billion a year ago.
Net income of $830 million, up 17 per cent from last
year''s $710 million.
achieved record earnings during the year, as the company
advanced its strategy of being a full service transportation
company with the broadest choices in the industry,"
says Frederick W Smith, chairman, president and chief
executive officer. "Our strategy execution enabled
the company to improve its revenue, earnings and returns
during the year, posting a strong performance despite
challenging economic conditions."
return on invested capital improved in fiscal 2003, as
earnings continued to increase and the company''s capital
intensity declined," says Alan B Graf Jr, executive
vice-president and chief financial officer. "We believe
that our efforts, combined with an improving economy,
will provide FedEx improved profitability and cash flow."
spending in fiscal 2003 was $1.5 billion, marking the
fifth consecutive year of reduced capital expenditures.
The company generated solid positive cash flow during
the year despite over $1 billion in pension contributions.
The company also repurchased 3.275 million shares of FedEx
stock at a cost of $186 million, disbursed $60 million
in cash dividends, and increased its cash level by $207
million during 2003. A total of 3.375 million shares remain
under the existing share repurchase authorisation.
company recently announced that it would offer two new
programmes at FedEx Express during fiscal 2004 to enable
the company to continue resizing its US organisation and
improve profitability. The first programme will be a voluntary
retirement option with an enhanced pension package to
certain groups of employees, aged 50 or older. The second
programme will offer voluntary severance incentives to
eligible employees. Both programmes are limited to salaried
US staff and some management employees at FedEx Express.
on employee acceptance rates, the pre-tax charge for these
programmes is estimated to be in a range of $230 million
to $290 million in fiscal 2004, with most of the charge
to be incurred in the first half of the fiscal year. Approximately
one-third of the pre-tax charge will be cash, with the
remainder of the charge relating primarily to pension
and post-retirement healthcare liabilities.
estimated savings from these programmes are expected to
be $100 million to $130 million in fiscal 2004, primarily
in the second half of the fiscal year. The resulting net
cost of these programmes in fiscal 2004 is expected to
be $130 million to $160 million. In fiscal 2005 and beyond,
the estimated annual savings from these programmes are
expected to be $150 million to $190 million.