Form 8-K

Exhibit 99.1

FOR IMMEDIATE RELEASE

FedEx Corp. Reports Higher Fourth Quarter Earnings
Strong Earnings Growth Expected in Fiscal 2012

MEMPHIS, Tenn., June 22, 2011 ... FedEx Corp. (NYSE: FDX) today reported earnings of $1.75 per diluted share for the fourth quarter ended May 31, compared to $1.33 per diluted share a year ago, a year-over-year increase of 32%.

“During fiscal 2011, an improved economy, strong customer demand and decisive actions to grow our business led to increased volumes and yields across all transportation segments,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “With this positive momentum, moderate economic growth and subsiding cost headwinds, FedEx is well positioned to deliver strong earnings growth in fiscal 2012.”

Fourth Quarter Results

FedEx Corp. reported the following consolidated results for the fourth quarter:

	•		Revenue of $10.55 billion, up 12% from $9.43 billion the previous year

	•		Operating income of $888 million, up 28% from $696 million last year

	•		Operating margin of 8.4%, up from 7.4% the previous year

	•		Net income of $558 million, up 33% from last year’s $419 million

Revenue and earnings increased due to continued strong yield improvement in all transportation segments and volume growth of ground and international express shipments. FedEx Freight’s return to profitability also improved operating results.

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Full Year Results

FedEx Corp. reported the following consolidated results for the full year:

	•		Revenue of $39.3 billion, up 13% from $34.7 billion the previous year

	•		Operating income of $2.38 billion, up 19% from $2.00 billion last year

	•		Net income of $1.45 billion, up 23% from last year’s $1.18 billion

	•		Adjusted earnings per share of $4.90, up from $3.76 per share a year ago (Fiscal 2011 earnings per share exclude the impact of certain one–time costs—see table)

Capital spending for fiscal 2011 was $3.4 billion, of which $2.0 billion was for investments in aircraft and related equipment.

Outlook

FedEx projects earnings to be $1.40 to $1.60 per diluted share in the first quarter and $6.35 to $6.85 per diluted share for fiscal 2012. This guidance assumes the current market outlook for fuel prices and continued moderate growth in the global economy. The company reported earnings of $1.20 per diluted share in last year’s first quarter. The capital spending forecast for fiscal 2012 is $4.2 billion, which includes the delivery of aircraft as well as progress payments toward future aircraft deliveries, along with investments in facilities, vehicles and information technology in support of the company’s global growth strategy. The company will benefit from the tax expensing/accelerated depreciation provisions included in the Tax Relief Act of 2010 passed last December.

“Our actions to improve yields continue to drive revenue and earnings growth across our transportation segments,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “FedEx Ground maintained its exceptional performance this quarter, increasing volume, yields and margins, while FedEx Freight returned to profitability. Even with higher planned capital spending in fiscal 2012, margins, cash flows and returns are expected to improve year over year.”

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FedEx Express Segment

For the fourth quarter, the FedEx Express segment reported:

	•		Revenue of $6.63 billion, up 13% from last year’s $5.88 billion

	•		Operating income of $429 million, up 4% from $413 million a year ago

	•		Operating margin of 6.5%, down from 7.0% the previous year

FedEx International Priority^® (IP) average daily package volume increased 6%, led by exports from Asia. IP revenue per package grew 8% due to higher fuel surcharges, the favorable impact of exchange rates, improved weight per package and yield management actions. IP freight pounds increased 13% with revenue per pound up 6% due to higher fuel surcharges and the favorable impact of exchange rates. In total, IP package and freight revenue increased 15% and pounds increased 9% year-over-year. U.S. domestic revenue per package grew 10% due to higher fuel surcharges, yield management actions and increased weight per package, with slightly lower U.S. domestic average daily package volume.

Operating income improvements were driven by strong yield growth, particularly in U.S. domestic package services, and by volume growth in IP package and freight services. Results were negatively impacted by increased retirement plan expenses and the reinstatement of certain compensation programs.

FedEx Ground Segment

For the fourth quarter, the FedEx Ground segment reported:

	•		Revenue of $2.26 billion, up 15% from last year’s $1.96 billion

	•		Operating income of $417 million, up 31% from $319 million a year ago

	•		Operating margin of 18.4%, up from 16.3% the previous year

FedEx Ground average daily package volume grew 6% in the fourth quarter driven by increases in the business-to-business market and the FedEx Home Delivery service. Revenue per package increased 7% primarily due to yield management actions and higher fuel surcharges. FedEx SmartPost average daily volume increased 24% due to growth in e-commerce and gains in market share. FedEx SmartPost revenue per package increased 8% primarily due to growth in higher-yielding services and increased fuel surcharges.

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Operating income and margin increased primarily due to higher package yield and volume.

FedEx Freight Segment

For the fourth quarter, the FedEx Freight segment reported:

	•		Revenue of $1.31 billion, up 6% from last year’s $1.23 billion

	•		Operating income of $42 million, up from an operating loss of $36 million a year ago

	•		Operating margin of 3.2%, compared with (2.9%) the previous year

Less-than-truckload (LTL) yield increased 13% primarily due to yield management actions and higher LTL fuel surcharges. LTL average daily shipments decreased 8% as a result of the yield management actions.

The segment returned to profitability in the quarter due primarily to the higher LTL yield. Last year’s results included an $18 million impairment charge related to the goodwill associated with the acquisition of Watkins Motor Lines. Strong yield growth and efficiencies resulting from the January 30, 2011 combination of the FedEx Freight and FedEx National LTL operations are expected to drive a substantial improvement in operating results in fiscal 2012. The net cash effect of the combination was immaterial, as cash proceeds of $88 million from asset sales offset severance and other cash outlays.

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 $39 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 290,000 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 company’s annual report, Form 10-K, Form 10-Qs and fourth quarter fiscal 2011

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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 June 22 are available on the company’s Web site at www.fedex.com/us/investorrelations. A replay of the conference call Webcast will be posted on our Web site following the call.

Certain statements in this press release may be considered forward-looking statements, such as statements relating to management’s 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 Ground’s owner-operators, 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

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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES

The company believes that meaningful analysis of our financial performance requires an understanding of the factors underlying that performance and our judgments about the likelihood that particular factors will repeat. Excluding a reserve associated with a legal matter in the second quarter and the costs of the combination of FedEx Freight and FedEx National LTL operations from our full-year earnings, net of applicable incentive compensation impacts, will allow more accurate comparisons to prior periods of operating performance for fiscal 2011. As required by SEC rules, the table below presents a reconciliation of our presented non-GAAP measure to the most directly comparable GAAP measure.


	FY 2011 Diluted
	Earnings Per Share

Non-GAAP Measure	$	4.90

FedEx Freight Combination Costs		(0.26	)

ATA Legal Reserve, Net		(0.07	)


GAAP Measure	$	4.57

* * *

FEDEX CORP. FINANCIAL HIGHLIGHTS

Fourth Quarter Fiscal 2011
(In millions, except earnings per share and FTEs)
(Unaudited)


	Three Months Ended									Twelve Months Ended
	May 31									May 31
	2011			2010			%			2011			2010			%
Revenue:
FedEx Express segment	$	6,628		$	5,877			13	%	$	24,581		$	21,555			14	%
FedEx Ground segment		2,263			1,962			15	%		8,485			7,439			14	%
FedEx Freight segment		1,309			1,231			6	%		4,911			4,321			14	%
FedEx Services segment		438			448			(2	%)		1,684			1,770			(5	%)
Other & eliminations		(86	)		(90	)		4	%		(357	)		(351	)		(2	%)

Total Revenue		10,552			9,428			12	%		39,304			34,734			13	%

Operating Expenses:
Salaries and employee benefits		3,866			3,677			5	%		15,276			14,027			9	%
Purchased transportation		1,511			1,299			16	%		5,674			4,728			20	%
Rentals and landing fees		612			595			3	%		2,462			2,359			4	%
Depreciation and amortization		499			488			2	%		1,973			1,958			1	%
Fuel		1,277			886			44	%		4,151			3,106			34	%
Maintenance and repairs		509			500			2	%		1,979			1,715			15	%
Impairment and other charges		1			18		NM				89			18		NM
Other		1,389			1,269			9	%		5,322			4,825			10	%

Total Operating Expenses		9,664			8,732			11	%		36,926			32,736			13	%

Operating Income (Loss):
FedEx Express segment		429			413			4	%		1,228			1,127			9	%
FedEx Ground segment		417			319			31	%		1,325			1,024			29	%
FedEx Freight segment		42			(36	)		217	%		(175	)		(153	)		(14	%)

Total Operating Income		888			696			28	%		2,378			1,998			19	%

Other Income (Expense):
Interest, net		(12	)		(19	)		(37	%)		(77	)		(71	)		8	%
Other, net		(11	)		(5	)		120	%		(36	)		(33	)		9	%

Total Other Income (Expense)		(23	)		(24	)		(4	%)		(113	)		(104	)		9	%

Pretax Income		865			672			29	%		2,265			1,894			20	%

Provision for Income Taxes		307			253			21	%		813			710			15	%


Net Income	$	558		$	419			33	%	$	1,452		$	1,184			23	%


Diluted Earnings Per Share	$	1.75		$	1.33			32	%	$	4.57		$	3.76			22	%


Weighted Average Diluted Common and Common Equivalent Shares		318			316			1	%		317			314			1	%

Capital Expenditures	$	731		$	835			(12	%)	$	3,434		$	2,816			22	%

Average Full-Time Equivalents (000s)		257			248			4	%		256			245			4	%

FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS

Fourth Quarter Fiscal 2011
(In millions)
(Current period is unaudited)


	May 31, 2011			May 31, 2010
ASSETS
Current Assets
Cash and cash equivalents	$	2,328		$	1,952
Receivables, less allowances		4,581			4,163
Spare parts, supplies and fuel, less allowances		437			389
Deferred income taxes		610			529
Prepaid expenses and other		329			251

Total current assets		8,285			7,284

Property and Equipment, at Cost		33,686			31,302
Less accumulated depreciation and amortization		18,143			16,917

Net property and equipment		15,543			14,385

Other Long-Term Assets
Goodwill		2,326			2,200
Other assets		1,231			1,033

Total other long-term assets		3,557			3,233


	$	27,385		$	24,902


LIABILITIES AND STOCKHOLDERS’ INVESTMENT

Current Liabilities
Current portion of long-term debt	$	18		$	262
Accrued salaries and employee benefits		1,268			1,146
Accounts payable		1,702			1,522
Accrued expenses		1,894			1,715

Total current liabilities		4,882			4,645

Long-Term Debt, Less Current Portion		1,667			1,668

Other Long-Term Liabilities
Deferred income taxes		1,336			891
Pension, postretirement healthcare and other benefit obligations		2,124			1,705
Self-insurance accruals		977			960
Deferred lease obligations		779			804
Deferred gains, principally related to aircraft transactions		246			267
Other liabilities		154			151

Total other long-term liabilities		5,616			4,778

Commitments and Contingencies

Common Stockholders’ Investment
Common stock, $0.10 par value, 800 million shares authorized		32			31
Additional paid-in capital		2,484			2,261
Retained earnings		15,266			13,966
Accumulated other comprehensive loss		(2,550	)		(2,440	)
Treasury stock, at cost		(12	)		(7	)

Total common stockholders’ investment		15,220			13,811


	$	27,385		$	24,902

FEDEX CORP. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS

Fourth Quarter Fiscal 2011
(In millions)
(Current period is unaudited)


	Year Ended
	May 31
	2011			2010

Operating Activities:
Net income	$	1,452		$	1,184
Noncash charges:
Depreciation and amortization		1,973			1,958
Other, net		948			574
Changes in operating assets and liabilities, net		(332	)		(578	)


Cash provided by operating activities		4,041			3,138

Investing Activities:
Capital expenditures		(3,434	)		(2,816	)
Business acquisitions, net of cash acquired		(96	)		—
Proceeds from asset dispositions and other		111			35


Cash used in investing activities		(3,419	)		(2,781	)

Financing Activities:
Principal payments on debt		(262	)		(653	)
Dividends paid		(151	)		(138	)
Other, net		126			99


Cash used in financing activities		(287	)		(692	)


Effect of exchange rate changes on cash		41			(5	)


Net increase (decrease) in cash and cash equivalents		376			(340	)

Cash and cash equivalents at beginning of period		1,952			2,292

Cash and cash equivalents at end of period	$	2,328		$	1,952

FEDEX EXPRESS SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2011
(Dollars in millions)
(Unaudited)


	Three Months Ended									Twelve Months Ended
	May 31									May 31
	2011			2010			%			2011			2010			%
FINANCIAL HIGHLIGHTS

Revenue	$	6,628		$	5,877			13	%	$	24,581		$	21,555			14	%

Operating Expenses:
Salaries and employee benefits		2,351			2,187			7	%		9,183			8,402			9	%
Purchased transportation		430			347			24	%		1,573			1,177			34	%
Rentals and landing fees		418			399			5	%		1,672			1,577			6	%
Depreciation and amortization		272			259			5	%		1,059			1,016			4	%
Fuel		1,099			748			47	%		3,553			2,651			34	%
Maintenance and repairs		351			342			3	%		1,353			1,131			20	%
Intercompany charges		520			504			3	%		2,043			1,940			5	%
Other¹		758			678			12	%		2,917			2,534			15	%

Total Operating Expenses		6,199			5,464			13	%		23,353			20,428			14	%


Operating Income	$	429		$	413			4	%	$	1,228		$	1,127			9	%


Operating Margin		6.5	%		7.0	%	(0.5		pts)		5.0	%		5.2	%	(0.2		pts)

OPERATING STATISTICS

Operating Weekdays		65			65			—			255			255			—

AVG DAILY VOLUME / POUNDS
Average Daily Package Volume (000s):

U.S. Overnight Box		1,158			1,156			0	%		1,184			1,157			2	%
U.S. Overnight Envelope		626			632			(1	%)		627			614			2	%
U.S. Deferred		833			843			(1	%)		873			867			1	%

Total U.S. Domestic Package		2,617			2,631			(1	%)		2,684			2,638			2	%
International Priority		593			560			6	%		575			523			10	%
International Domestic		373			323			15	%		348			318			9	%

Total Average Daily Packages		3,583			3,514			2	%		3,607			3,479			4	%


Average Daily Freight Pounds (000s):

U.S.		7,027			6,916			2	%		7,340			7,141			3	%
International Priority		3,261			2,889			13	%		3,184			2,544			25	%
International Airfreight		1,195			1,198			(0	%)		1,235			1,222			1	%

Total Avg Daily Freight Pounds		11,483			11,003			4	%		11,759			10,907			8	%


YIELD
Revenue Per Package:

U.S. Overnight Box	$	21.72		$	19.77			10	%	$	20.29		$	19.00			7	%
U.S. Overnight Envelope		11.37			10.64			7	%		10.86			10.47			4	%
U.S. Deferred		13.56			12.23			11	%		12.60			11.70			8	%

Total U.S. Domestic Package		16.65			15.16			10	%		15.59			14.61			7	%
International Priority		58.96			54.45			8	%		56.08			53.10			6	%
International Domestic		7.51			7.22			4	%		7.38			7.14			3	%

Composite Package Yield	$	22.69		$	20.69			10	%	$	21.25		$	19.72			8	%


Revenue Per Freight Pound:

U.S.	$	1.25		$	1.15			9	%	$	1.17		$	1.09			7	%
International Priority		2.21			2.09			6	%		2.12			2.01			5	%
International Airfreight		0.96			0.85			13	%		0.90			0.81			11	%

Composite Freight Yield	$	1.49		$	1.36			10	%	$	1.40		$	1.27			10	%


Average Full-Time Equivalents (000s)		135			129			5	%		133			128			4	%

1 — Current year includes a $66 million reserve for a legal matter.

FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2011
(Dollars in millions)
(Unaudited)


	Three Months Ended									Twelve Months Ended
	May 31									May 31
	2011			2010			%			2011			2010			%
FINANCIAL HIGHLIGHTS

Revenues:
FedEx Ground	$	2,099		$	1,840			14	%	$	7,855		$	6,958			13	%
FedEx SmartPost		164			122			34	%		630			481			31	%

Total Revenues		2,263			1,962			15	%		8,485			7,439			14	%

Operating Expenses:
Salaries and employee benefits		328			299			10	%		1,282			1,158			11	%
Purchased transportation		893			769			16	%		3,431			2,966			16	%
Rentals		66			60			10	%		263			244			8	%
Depreciation and amortization		88			83			6	%		337			334			1	%
Fuel		3			2			50	%		12			8			50	%
Maintenance and repairs		43			47			(9	%)		169			166			2	%
Intercompany charges		228			208			10	%		897			795			13	%
Other		197			175			13	%		769			744			3	%

Total Operating Expenses		1,846			1,643			12	%		7,160			6,415			12	%


Operating Income	$	417		$	319			31	%	$	1,325		$	1,024			29	%


Operating Margin		18.4	%		16.3	%	2.1		pts		15.6	%		13.8	%	1.8		pts

OPERATING STATISTICS

Operating Weekdays		65			65			—			256			255			0	%

Average Daily Package Volume (000s)
FedEx Ground		3,732			3,516			6	%		3,746			3,523			6	%
FedEx SmartPost		1,430			1,150			24	%		1,432			1,222			17	%

Yield (Revenue Per Package)
FedEx Ground	$	8.64		$	8.04			7	%	$	8.17		$	7.73			6	%
FedEx SmartPost	$	1.76		$	1.63			8	%	$	1.72		$	1.56			10	%

FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2011
(Dollars in millions)
(Unaudited)


	Three Months Ended									Twelve Months Ended
	May 31									May 31
	2011			2010			%			2011			2010			%
FINANCIAL HIGHLIGHTS

Revenue	$	1,309		$	1,231			6	%	$	4,911		$	4,321			14	%

Operating Expenses:
Salaries and employee benefits		557			576			(3	%)		2,303			2,128			8	%
Purchased transportation		212			213			(0	%)		779			690			13	%
Rentals		28			31			(10	%)		122			116			5	%
Depreciation and amortization		47			48			(2	%)		205			198			4	%
Fuel		176			135			30	%		585			445			31	%
Maintenance and repairs		47			43			9	%		182			148			23	%
Intercompany charges		104			102			2	%		427			351			22	%
Impairment and other charges¹		1			18			(94	%)		89			18		NM
Other		95			101			(6	%)		394			380			4	%

Total Operating Expenses		1,267			1,267			—			5,086			4,474			14	%


Operating Income (Loss)	$	42		$	(36	)		217	%	$	(175	)	$	(153	)		(14	%)


Operating Margin		3.2	%		(2.9	%)	6.1		pts		(3.6	%)		(3.5	%)	(0.1		pts)

OPERATING STATISTICS

LTL Operating Weekdays		65			65			—			254			253			0	%

LTL Shipments Per Day (000s)		84.3			91.5			(8	%)		86.0			82.3			4	%
Weight Per LTL Shipment (lbs)		1,177			1,160			1	%		1,144			1,134			1	%
LTL Revenue/CWT	$	18.83		$	16.69			13	%	$	18.24		$	17.07			7	%


1 —		Current year includes charges associated with the combination of FedEx Freight and FedEx National LTL operations, which became effective January 30, 2011.


Delaware		62-1721435
(State or other jurisdiction of		(IRS Employer
incorporation)		Identification No.)

942 South Shady Grove Road, Memphis, Tennessee		38120
(Address of principal executive offices)		(ZIP Code)


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)

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Exhibit
Number		Description

	99.1	Press Release of FedEx Corporation dated June 22, 2011.


	FedEx Corporation
Date: June 22, 2011	By:	/s/ HERBERT C. NAPPIER
		Herbert C. Nappier
		Staff Vice President and Corporate Controller

	Federal Express Corporation
Date: June 22, 2011	By:	/s/ J. RICK BATEMAN
		J. Rick Bateman
		Vice President and Worldwide Controller