UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 18, 2013
FEDEX CORPORATION
(Exact name of registrant as specified in its charter)
Commission File Number 1-15829
Delaware | 62-1721435 | |
(State or other jurisdiction of incorporation) |
(IRS Employer Identification No.) |
942 South Shady Grove Road, Memphis, Tennessee | 38120 | |
(Address of principal executive offices) | (ZIP Code) |
Registrants telephone number, including area code: (901) 818-7500
FEDERAL EXPRESS CORPORATION
(Exact name of registrant as specified in its charter)
Commission File Number 1-7806
Delaware | 71-0427007 | |
(State or other jurisdiction of incorporation) |
(IRS Employer Identification No.) |
3610 Hacks Cross Road, Memphis, Tennessee | 38125 | |
(Address of principal executive offices) | (ZIP Code) |
Registrants telephone number, including area code: (901) 369-3600
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
EXPLANATORY NOTE
The information in this Report, including the exhibit, is being furnished pursuant to Item 2.02 of Form 8-K and General Instruction B.2 thereunder. Such information shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
SECTION 2. FINANCIAL INFORMATION.
Item 2.02. | Results of Operations and Financial Condition. |
Attached as Exhibit 99.1 and incorporated herein by reference is a copy of FedEx Corporations press release, dated September 18, 2013, announcing its and its wholly owned subsidiary Federal Express Corporations financial results for the fiscal quarter ended August 31, 2013.
SECTION 9. FINANCIAL STATEMENTS AND EXHIBITS.
Item 9.01. | Financial Statements and Exhibits. |
(d) | Exhibits. The following exhibit is being furnished as part of this Report. |
Exhibit |
Description | |
99.1 | Press Release of FedEx Corporation dated September 18, 2013. |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
FedEx Corporation | ||||||
Date: September 18, 2013 |
By: | /s/ HERBERT C. NAPPIER | ||||
Herbert C. Nappier | ||||||
Staff Vice President and | ||||||
Corporate Controller | ||||||
Federal Express Corporation | ||||||
Date: September 18, 2013 |
By: | /s/ J. RICK BATEMAN | ||||
J. Rick Bateman | ||||||
Vice President and | ||||||
Worldwide Controller |
3
EXHIBIT INDEX
Exhibit Number |
Description | |
99.1 | Press Release of FedEx Corporation dated September 18, 2013. |
E-1
Exhibit 99.1
FOR IMMEDIATE RELEASE
FedEx Corp. Reports Higher Year-Over-Year
First Quarter Results
FedEx Express Announces 2014 Rate Increase
MEMPHIS, Tenn., September 18, 2013 ... FedEx Corp. (NYSE: FDX) today reported earnings of $1.53 per diluted share for the first quarter ended August 31, compared to $1.45 per share last year.
Growth in overall demand for our broad global portfolio of solutions drove our improved first quarter results, said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. FedEx Express remains focused on reducing costs while facing challenging global economic conditions. Meanwhile, FedEx Ground continues to generate strong profitability on growing customer demand for its services.
First Quarter Results
FedEx Corp. reported the following consolidated results for the first quarter:
| Revenue of $11.0 billion, up 2% from $10.8 billion the previous year |
| Operating income of $795 million, up 7% from $742 million last year |
| Operating margin of 7.2%, up from 6.9% the previous year |
| Net income of $489 million, up 7% from last years $459 million |
Revenue and earnings increased during the quarter, driven by solid performance at each of the companys transportation segments. Results include significant headwinds from the net year-over-year impact from the timing lag that exists between when fuel prices change and indexed fuel surcharges automatically adjust, as well as one fewer operating day.
Outlook
FedEx reaffirmed its forecast of full-year earnings per share growth of 7% to 13% from last years adjusted results. This outlook assumes the market outlook for fuel prices, U.S. GDP growth of 2.1% and world GDP growth of 2.6%. The capital spending forecast for fiscal 2014 remains $4 billion.
- more -
1
We remain confident in our full year earnings outlook despite tepid global economic growth, said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. FedEx Express continued to execute on its profit improvement initiatives during our first quarter. We remain focused and are committed to FedEx Express achieving its $1.6 billion operating profit improvement target by the end of fiscal 2016.
2014 Rate Increases
FedEx Express will increase shipping rates by an average of 3.9% for U.S. domestic, U.S. export and U.S. import services effective January 6, 2014. The FedEx Ground and FedEx SmartPost pricing changes for 2014 will be announced later this year. FedEx Freight implemented a 4.5% general rate increase on July 1, 2013.
Details of changes that will be made to FedEx Express surcharges can be found at fedex.com/us/2014rates.
FedEx Express Segment
For the first quarter, the FedEx Express segment reported:
| Revenue of $6.61 billion, down slightly from last years $6.63 billion |
| Operating income of $236 million, up 14% from $207 million a year ago |
| Operating margin of 3.6%, up from 3.1% the previous year |
Revenue decreased due to lower fuel surcharge revenue and one fewer operating day. U.S. domestic average daily package volume increased 1% while U.S. domestic revenue per package was essentially flat, as higher rate per pound and weight per package were offset by lower fuel surcharges. FedEx international export average daily volume grew 4% during the quarter, as FedEx International Economy grew 15% while FedEx International Priority slightly declined. International export revenue per package fell 4% primarily due to lower fuel surcharges, lower rates and the demand shift to lower-yielding international services.
Operating income and margin growth were constrained by the significant net negative impact of the fuel surcharge timing lag and one fewer operating day. Despite these constraints, operating results improved due to better base U.S. business performance and lower pension expenses. The continued modernization of the companys aircraft fleet drove maintenance costs lower, partially offset by higher related depreciation expense.
- more -
2
FedEx Ground Segment
For the first quarter, the FedEx Ground segment reported:
| Revenue of $2.73 billion, up 11% from last years $2.46 billion |
| Operating income of $468 million, up 5% from $445 million a year ago |
| Operating margin of 17.1%, down from 18.1% the previous year |
FedEx Ground average daily volume grew 11% in the first quarter due to continued growth in both FedEx Home Delivery and commercial business services. Revenue per package increased 1% due to increased rates and higher residential surcharge revenue, partially offset by lower fuel surcharges. FedEx SmartPost average daily volume increased 26% primarily due to growth in e-commerce. FedEx SmartPost net revenue per package decreased 5% due to increased postage rates and lower fuel surcharges, partially offset by rate increases.
Operating income increased due to higher volume and revenue per package, partially offset by the net negative impact of fuel, increased network expansion costs and one fewer operating day. Operating margin decreased due to the net negative impact of fuel.
FedEx Freight Segment
For the first quarter, the FedEx Freight segment reported:
| Revenue of $1.42 billion, up 2% from last years $1.40 billion |
| Operating income of $91 million, up 1% from $90 million a year ago |
| Operating margin of 6.4%, unchanged from 6.4% the previous year |
Less-than-truckload (LTL) yield increased 1% due to FedEx Freight Economy and FedEx Freight Priority base yield improvement. LTL weight per shipment grew 1% due to heavier FedEx Freight Priority, while LTL average daily shipments increased 1% due to FedEx Freight Economy.
Operating income improved due to higher weight per shipment, yield and average daily shipments, overcoming the impact of one fewer operating day.
- more -
3
Corporate Overview
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $45 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the worlds most admired and trusted employers, FedEx inspires its more than 300,000 team members to remain absolutely, positively focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit news.fedex.com.
Additional information and operating data are contained in the companys annual report, Form 10-K, Form 10-Qs and first quarter fiscal 2014 Statistical Book. These materials, as well as a webcast of the earnings release conference call to be held at 8:30 a.m. EDT on September 18 are available on the companys website at investors.fedex.com. A replay of the conference call webcast will be posted on our website following the call.
Certain statements in this press release may be considered forward-looking statements, such as statements relating to managements views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate, legal challenges or changes related to FedEx Grounds owner-operators, our ability to execute on our business realignment program, new U.S. domestic or international government regulation, the impact from any terrorist activities or international conflicts, our ability to effectively operate, integrate and leverage acquired businesses, changes in fuel prices and currency exchange rates, our ability to match capacity to shifting volume levels and other factors which can be found in FedEx Corp.s and its subsidiaries press releases and filings with the SEC.
Media Contact: Jess Bunn 901-818-7463
Investor Contact: Mickey Foster 901-818-7468
Home Page: fedex.com
# # #
4
FEDEX CORP. FINANCIAL HIGHLIGHTS
First Quarter Fiscal 2014
(In millions, except earnings per share)
(Unaudited)
Three Months
Ended August 31 |
||||||||||||
2013 | 2012 | % | ||||||||||
Revenue: |
||||||||||||
FedEx Express segment |
$ | 6,605 | $ | 6,632 | | |||||||
FedEx Ground segment |
2,730 | 2,462 | 11 | % | ||||||||
FedEx Freight segment |
1,424 | 1,399 | 2 | % | ||||||||
FedEx Services segment |
375 | 389 | (4 | %) | ||||||||
Other & eliminations |
(110 | ) | (90 | ) | 22 | % | ||||||
|
|
|
|
|||||||||
Total Revenue |
11,024 | 10,792 | 2 | % | ||||||||
Operating Expenses: |
||||||||||||
Salaries and employee benefits |
4,077 | 4,103 | (1 | %) | ||||||||
Purchased transportation |
1,879 | 1,680 | 12 | % | ||||||||
Rentals and landing fees |
640 | 618 | 4 | % | ||||||||
Depreciation and amortization |
639 | 573 | 12 | % | ||||||||
Fuel |
1,104 | 1,138 | (3 | %) | ||||||||
Maintenance and repairs |
480 | 542 | (11 | %) | ||||||||
Other |
1,410 | 1,396 | 1 | % | ||||||||
|
|
|
|
|||||||||
Total Operating Expenses |
10,229 | 10,050 | 2 | % | ||||||||
Operating Income: |
||||||||||||
FedEx Express segment |
236 | 207 | 14 | % | ||||||||
FedEx Ground segment |
468 | 445 | 5 | % | ||||||||
FedEx Freight segment |
91 | 90 | 1 | % | ||||||||
|
|
|
|
|||||||||
Total Operating Income |
795 | 742 | 7 | % | ||||||||
Other Income (Expense): |
||||||||||||
Interest, net |
(27 | ) | (10 | ) | NM | |||||||
Other, net |
(2 | ) | (5 | ) | NM | |||||||
|
|
|
|
|||||||||
Total Other Income (Expense) |
(29 | ) | (15 | ) | NM | |||||||
Income Before Income Taxes |
766 | 727 | 5 | % | ||||||||
Provision for Income Taxes |
277 | 268 | 3 | % | ||||||||
|
|
|
|
|||||||||
Net Income |
$ | 489 | $ | 459 | 7 | % | ||||||
|
|
|
|
|||||||||
Diluted Earnings Per Share |
$ | 1.53 | $ | 1.45 | 6 | % | ||||||
|
|
|
|
|||||||||
Weighted Average Common and Common Equivalent Shares |
319 | 316 | 1 | % | ||||||||
Capital Expenditures |
$ | 572 | $ | 972 | (41 | %) |
5
FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS
First Quarter Fiscal 2014
(In millions)
August 31, 2013 (Unaudited) |
May 31, 2013 | |||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 5,096 | $ | 4,917 | ||||
Receivables, less allowances |
4,990 | 5,044 | ||||||
Spare parts, supplies and fuel, less allowances |
451 | 457 | ||||||
Deferred income taxes |
604 | 533 | ||||||
Prepaid expenses and other |
352 | 323 | ||||||
|
|
|
|
|||||
Total current assets |
11,493 | 11,274 | ||||||
Property and Equipment, at Cost |
38,167 | 38,109 | ||||||
Less accumulated depreciation and amortization |
19,730 | 19,625 | ||||||
|
|
|
|
|||||
Net property and equipment |
18,437 | 18,484 | ||||||
Other Long-Term Assets |
||||||||
Goodwill |
2,712 | 2,755 | ||||||
Other assets |
1,031 | 1,054 | ||||||
|
|
|
|
|||||
Total other long-term assets |
3,743 | 3,809 | ||||||
|
|
|
|
|||||
$ | 33,673 | $ | 33,567 | |||||
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS INVESTMENT |
||||||||
Current Liabilities |
||||||||
Current portion of long-term debt |
$ | 254 | $ | 251 | ||||
Accrued salaries and employee benefits |
1,366 | 1,688 | ||||||
Accounts payable |
1,879 | 1,879 | ||||||
Accrued expenses |
2,024 | 1,932 | ||||||
|
|
|
|
|||||
Total current liabilities |
5,523 | 5,750 | ||||||
Long-Term Debt, Less Current Portion |
2,739 | 2,739 | ||||||
Other Long-Term Liabilities |
||||||||
Deferred income taxes |
1,820 | 1,652 | ||||||
Pension, postretirement healthcare and other benefit obligations |
3,813 | 3,916 | ||||||
Self-insurance accruals |
996 | 987 | ||||||
Deferred lease obligations |
797 | 778 | ||||||
Deferred gains, principally related to aircraft transactions |
221 | 227 | ||||||
Other liabilities |
109 | 120 | ||||||
|
|
|
|
|||||
Total other long-term liabilities |
7,756 | 7,680 | ||||||
Commitments and Contingencies |
||||||||
Common Stockholders Investment |
||||||||
Common stock, $0.10 par value, 800 million shares authorized |
32 | 32 | ||||||
Additional paid-in capital |
2,696 | 2,668 | ||||||
Retained earnings |
18,913 | 18,519 | ||||||
Accumulated other comprehensive loss |
(3,857 | ) | (3,820 | ) | ||||
Treasury stock, at cost |
(129 | ) | (1 | ) | ||||
|
|
|
|
|||||
Total common stockholders investment |
17,655 | 17,398 | ||||||
|
|
|
|
|||||
$ | 33,673 | $ | 33,567 | |||||
|
|
|
|
6
FEDEX CORP. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
First Quarter Fiscal 2014
(In millions)
(Unaudited)
Three Months Ended August 31 |
||||||||
2013 | 2012 | |||||||
Operating Activities: |
||||||||
Net income |
$ | 489 | $ | 459 | ||||
Noncash charges: |
||||||||
Depreciation and amortization |
639 | 573 | ||||||
Other, net |
171 | 209 | ||||||
Changes in operating assets and liabilities, net |
(370 | ) | (338 | ) | ||||
|
|
|
|
|||||
Net cash provided by operating activities |
929 | 903 | ||||||
Investing Activities: |
||||||||
Capital expenditures |
(572 | ) | (972 | ) | ||||
Business acquisitions, net of cash acquired |
| (483 | ) | |||||
Proceeds from asset dispositions and other |
10 | 12 | ||||||
|
|
|
|
|||||
Net cash used in investing activities |
(562 | ) | (1,443 | ) | ||||
Financing Activities: |
||||||||
Principal payments on debt |
| (301 | ) | |||||
Proceeds from debt issuance |
| 991 | ||||||
Dividends paid |
(48 | ) | (44 | ) | ||||
Purchase of treasury stock |
(278 | ) | (246 | ) | ||||
Other, net |
145 | 25 | ||||||
|
|
|
|
|||||
Net cash (used in) provided by financing activities |
(181 | ) | 425 | |||||
|
|
|
|
|||||
Effect of exchange rate changes on cash |
(7 | ) | 15 | |||||
|
|
|
|
|||||
Net increase (decrease) in cash and cash equivalents |
179 | (100 | ) | |||||
Cash and cash equivalents at beginning of period |
4,917 | 2,843 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ | 5,096 | $ | 2,743 | ||||
|
|
|
|
7
FEDEX EXPRESS SEGMENT FINANCIAL HIGHLIGHTS
First Quarter Fiscal 2014
(Dollars in millions)
(Unaudited)
Three Months Ended | ||||||||||||
August 31 | ||||||||||||
2013 | 2012 | % | ||||||||||
Revenues: |
||||||||||||
Package Revenue: |
||||||||||||
U.S. Overnight Box |
$ | 1,584 | $ | 1,604 | (1 | %) | ||||||
U.S. Overnight Envelope |
419 | 430 | (3 | %) | ||||||||
|
|
|
|
|||||||||
Total U.S. Overnight |
2,003 | 2,034 | (2 | %) | ||||||||
U.S. Deferred |
729 | 702 | 4 | % | ||||||||
|
|
|
|
|||||||||
Total U.S. Package Revenue |
2,732 | 2,736 | | |||||||||
|
|
|
|
|||||||||
International Priority |
1,576 | 1,661 | (5 | %) | ||||||||
International Economy |
532 | 487 | 9 | % | ||||||||
|
|
|
|
|||||||||
Total International Export Package |
2,108 | 2,148 | (2 | %) | ||||||||
International Domestic1 |
345 | 309 | 12 | % | ||||||||
|
|
|
|
|||||||||
Total Package Revenue |
5,185 | 5,193 | | |||||||||
Freight Revenue: |
||||||||||||
U.S. |
624 | 610 | 2 | % | ||||||||
International Priority |
388 | 439 | (12 | %) | ||||||||
International Airfreight |
54 | 74 | (27 | %) | ||||||||
|
|
|
|
|||||||||
Total Freight Revenue |
1,066 | 1,123 | (5 | %) | ||||||||
Other Revenue2 |
354 | 316 | 12 | % | ||||||||
|
|
|
|
|||||||||
Total Express Revenue |
$ | 6,605 | $ | 6,632 | | |||||||
Operating Expenses: |
||||||||||||
Salaries and employee benefits |
2,440 | 2,473 | (1 | %) | ||||||||
Purchased transportation |
608 | 537 | 13 | % | ||||||||
Rentals and landing fees |
421 | 415 | 1 | % | ||||||||
Depreciation and amortization |
369 | 323 | 14 | % | ||||||||
Fuel |
956 | 986 | (3 | %) | ||||||||
Maintenance and repairs |
307 | 372 | (17 | %) | ||||||||
Intercompany charges |
495 | 537 | (8 | %) | ||||||||
Other |
773 | 782 | (1 | %) | ||||||||
|
|
|
|
|||||||||
Total Operating Expenses |
6,369 | 6,425 | (1 | %) | ||||||||
|
|
|
|
|||||||||
Operating Income |
$ | 236 | $ | 207 | 14 | % | ||||||
|
|
|
|
|||||||||
Operating Margin |
3.6 | % | 3.1 | % | 0.5 | pts |
1 - | International Domestic includes international intra-country express operations, including acquisitions in Poland (June 2012), France (July 2012) and Brazil (July 2012). |
2 - | Includes FedEx Trade Networks and FedEx SupplyChain Systems. |
8
FEDEX EXPRESS SEGMENT OPERATING HIGHLIGHTS
First Quarter Fiscal 2014
(Unaudited)
Three Months Ended | ||||||||||||
August 31 | ||||||||||||
2013 | 2012 | % | ||||||||||
PACKAGE STATISTICS1 |
||||||||||||
Average Daily Package Volume (000s): |
||||||||||||
U.S. Overnight Box |
1,112 | 1,092 | 2 | % | ||||||||
U.S. Overnight Envelope |
563 | 575 | (2 | %) | ||||||||
|
|
|
|
|||||||||
Total U.S. Overnight Package |
1,675 | 1,667 | | |||||||||
U.S. Deferred |
790 | 762 | 4 | % | ||||||||
|
|
|
|
|||||||||
Total U.S. Domestic Package |
2,465 | 2,429 | 1 | % | ||||||||
|
|
|
|
|||||||||
International Priority |
406 | 408 | | |||||||||
International Economy |
165 | 143 | 15 | % | ||||||||
|
|
|
|
|||||||||
Total International Export Package |
571 | 551 | 4 | % | ||||||||
International Domestic2 |
789 | 681 | 16 | % | ||||||||
|
|
|
|
|||||||||
Total Average Daily Packages |
3,825 | 3,661 | 4 | % | ||||||||
|
|
|
|
|||||||||
Yield (Revenue Per Package): |
||||||||||||
U.S. Overnight Box |
$ | 22.27 | $ | 22.59 | (1 | %) | ||||||
U.S. Overnight Envelope |
11.61 | 11.51 | 1 | % | ||||||||
|
|
|
|
|||||||||
U.S. Overnight Composite |
18.68 | 18.77 | | |||||||||
U.S. Deferred |
14.42 | 14.17 | 2 | % | ||||||||
|
|
|
|
|||||||||
U.S. Domestic Composite |
17.32 | 17.33 | | |||||||||
|
|
|
|
|||||||||
International Priority |
60.65 | 62.68 | (3 | %) | ||||||||
International Economy |
50.41 | 52.17 | (3 | %) | ||||||||
|
|
|
|
|||||||||
Total International Export Composite |
57.70 | 59.94 | (4 | %) | ||||||||
International Domestic2 |
6.84 | 7.00 | (2 | %) | ||||||||
|
|
|
|
|||||||||
Composite Package Yield |
$ | 21.18 | $ | 21.82 | (3 | %) | ||||||
|
|
|
|
|||||||||
FREIGHT STATISTICS |
||||||||||||
Average Daily Freight Pounds (000s): |
||||||||||||
U.S. |
7,423 | 7,077 | 5 | % | ||||||||
International Priority |
2,862 | 3,184 | (10 | %) | ||||||||
International Airfreight |
850 | 1,104 | (23 | %) | ||||||||
|
|
|
|
|||||||||
Total Avg Daily Freight Pounds |
11,135 | 11,365 | (2 | %) | ||||||||
|
|
|
|
|||||||||
Revenue Per Freight Pound: |
||||||||||||
U.S. |
$ | 1.31 | $ | 1.33 | (2 | %) | ||||||
International Priority |
2.12 | 2.12 | | |||||||||
International Airfreight |
0.99 | 1.03 | (4 | %) | ||||||||
|
|
|
|
|||||||||
Composite Freight Yield |
$ | 1.50 | $ | 1.52 | (1 | %) | ||||||
|
|
|
|
|||||||||
Operating Weekdays |
64 | 65 | (2 | %) |
1 - | Package and freight statistics include only the operations of FedEx Express. |
2 - | International Domestic includes international intra-country express operations, including acquisitions in Poland (June 2012), France (July 2012) and Brazil (July 2012). |
9
FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
First Quarter Fiscal 2014
(Dollars in millions)
(Unaudited)
Three Months Ended | ||||||||||||
August 31 | ||||||||||||
2013 | 2012 | % | ||||||||||
FINANCIAL HIGHLIGHTS |
||||||||||||
Revenues: |
||||||||||||
FedEx Ground |
$ | 2,506 | $ | 2,273 | 10 | % | ||||||
FedEx SmartPost |
224 | 189 | 19 | % | ||||||||
|
|
|
|
|||||||||
Total Revenues |
2,730 | 2,462 | 11 | % | ||||||||
Operating Expenses: |
||||||||||||
Salaries and employee benefits |
414 | 377 | 10 | % | ||||||||
Purchased transportation |
1,064 | 946 | 12 | % | ||||||||
Rentals |
92 | 74 | 24 | % | ||||||||
Depreciation and amortization |
111 | 103 | 8 | % | ||||||||
Fuel |
3 | 3 | | |||||||||
Maintenance and repairs |
53 | 46 | 15 | % | ||||||||
Intercompany charges |
285 | 262 | 9 | % | ||||||||
Other |
240 | 206 | 17 | % | ||||||||
|
|
|
|
|||||||||
Total Operating Expenses |
2,262 | 2,017 | 12 | % | ||||||||
|
|
|
|
|||||||||
Operating Income |
$ | 468 | $ | 445 | 5 | % | ||||||
|
|
|
|
|||||||||
Operating Margin |
17.1 | % | 18.1 | % | (1.0 | pts) | ||||||
OPERATING STATISTICS |
||||||||||||
Operating Weekdays |
64 | 65 | (2 | %) | ||||||||
Average Daily Package Volume (000s) |
||||||||||||
FedEx Ground |
4,313 | 3,898 | 11 | % | ||||||||
FedEx SmartPost |
2,092 | 1,664 | 26 | % | ||||||||
Yield (Revenue Per Package) |
||||||||||||
FedEx Ground |
$ | 9.05 | $ | 8.94 | 1 | % | ||||||
FedEx SmartPost |
$ | 1.67 | $ | 1.75 | (5 | %) |
10
FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
First Quarter Fiscal 2014
(Dollars in millions)
(Unaudited)
Three Months Ended August 31 |
||||||||||||
2013 | 2012 | % | ||||||||||
FINANCIAL HIGHLIGHTS |
||||||||||||
Revenue |
$ | 1,424 | $ | 1,399 | 2 | % | ||||||
Operating Expenses: |
||||||||||||
Salaries and employee benefits |
598 | 599 | | |||||||||
Purchased transportation |
234 | 226 | 4 | % | ||||||||
Rentals |
32 | 29 | 10 | % | ||||||||
Depreciation and amortization |
57 | 53 | 8 | % | ||||||||
Fuel |
145 | 148 | (2 | %) | ||||||||
Maintenance and repairs |
46 | 48 | (4 | %) | ||||||||
Intercompany charges |
121 | 111 | 9 | % | ||||||||
Other |
100 | 95 | 5 | % | ||||||||
|
|
|
|
|||||||||
Total Operating Expenses |
1,333 | 1,309 | 2 | % | ||||||||
|
|
|
|
|||||||||
Operating Income |
$ | 91 | $ | 90 | 1 | % | ||||||
|
|
|
|
|||||||||
Operating Margin |
6.4 | % | 6.4 | % | | |||||||
OPERATING STATISTICS |
||||||||||||
LTL Operating Weekdays |
64 | 65 | (2 | %) | ||||||||
Average Daily LTL Shipments (000s) |
||||||||||||
Priority |
61.1 | 61.4 | | |||||||||
Economy |
27.6 | 26.6 | 4 | % | ||||||||
|
|
|
|
|||||||||
Total Average Daily LTL Shipments |
88.7 | 88.0 | 1 | % | ||||||||
Weight Per LTL Shipment (lbs) |
||||||||||||
Priority |
1,244 | 1,215 | 2 | % | ||||||||
Economy |
993 | 999 | (1 | %) | ||||||||
|
|
|
|
|||||||||
Composite Weight Per LTL Shipment |
1,166 | 1,150 | 1 | % | ||||||||
LTL Yield (Revenue/CWT) |
||||||||||||
Priority |
$ | 17.88 | $ | 17.73 | 1 | % | ||||||
Economy |
25.84 | 25.33 | 2 | % | ||||||||
|
|
|
|
|||||||||
Composite LTL Yield |
$ | 19.99 | $ | 19.72 | 1 | % |
11