Form 8-K FEDEX CORP For: Mar 18
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): March 18, 2015
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 March 18, 2015, announcing its and its wholly owned subsidiary Federal Express Corporations financial results for the fiscal quarter ended February 28, 2015.
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 March 18, 2015. |
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: March 18, 2015 | By: | /s/ HERBERT C. NAPPIER | ||
Herbert C. Nappier | ||||
Staff Vice President and Corporate Controller | ||||
Federal Express Corporation | ||||
Date: March 18, 2015 | By: | /s/ ELISE L. JORDAN | ||
Elise L. Jordan | ||||
Senior Vice President and Chief Financial Officer |
3
EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Press Release of FedEx Corporation dated March 18, 2015. |
E-1
Exhibit 99.1
FOR IMMEDIATE RELEASE
FedEx Corp. Reports Strong Third Quarter Earnings Growth
MEMPHIS, Tenn., March 18, 2015 FedEx Corp. (NYSE: FDX) today reported earnings of $2.01 per diluted share for the third quarter ended February 28, compared to $1.23 per share last year.
We had a very successful peak season as volumes grew across all transportation segments, and our profit improvement programs are moving ahead as scheduled, said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. We believe our strategy is sound, our culture is unique, and our customers value our broad portfolio of business solutions.
Third Quarter Results
FedEx Corp. reported the following consolidated results for the third quarter:
| Revenue of $11.7 billion, up 4% from $11.3 billion the previous year |
| Operating income of $962 million, up 50% from $641 million last year |
| Operating margin of 8.2%, up from 5.7% the previous year |
| Net income of $580 million, up 53% from last years $378 million |
Operating results improved due to volume and base yield growth in all three transportation segments, a significant net benefit from fuel, benefits from profit improvement program initiatives, a lower year-over-year weather impact and reduced pension expense. These improvements were partially offset by higher variable incentive compensation accruals.
Share repurchases had a $0.11 year-over-year positive impact on third quarter earnings per diluted share.
Outlook
FedEx projects earnings to be $8.80 to $8.95 per diluted share for fiscal 2015. This outlook assumes continued moderate global economic growth. The capital spending forecast for fiscal 2015 remains $4.2 billion.
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1
We expect continued revenue and earnings growth this year, driven by ongoing improvements in all of our transportation segments, said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. Variable incentive compensation accruals will continue to increase as our financial performance improves, and we expect to deliver record fourth quarter and fiscal year earnings.
FedEx Express Segment
For the third quarter, the FedEx Express segment reported:
| Revenue of $6.66 billion, compared to last years $6.67 billion |
| Operating income of $384 million, up 129% from $168 million a year ago |
| Operating margin of 5.8%, up from 2.5% the previous year |
Revenue was essentially flat, as lower fuel surcharges and unfavorable currency exchange rates more than offset volume and base yield growth. U.S. domestic package volume grew by 4%, including 5% growth in overnight box. U.S. domestic revenue per package decreased 2% due to lower fuel surcharges, partially offset by higher base rates. FedEx International Economy volume grew 4%, while FedEx International Priority volume was flat. International export revenue per package decreased 4%, as lower fuel surcharges and unfavorable currency exchange rates were partially offset by favorable service mix and higher rates.
Operating results were higher as increased base revenue, a significant net benefit from fuel and a lower year-over-year weather impact all contributed to the quarter. In addition, the company continued to benefit from profit improvement program initiatives. Partially offsetting these favorable factors were increased variable incentive compensation accruals and aircraft maintenance expenses.
FedEx Ground Segment
For the third quarter, the FedEx Ground segment reported:
| Revenue of $3.39 billion, up 12% from last years $3.03 billion |
| Operating income of $558 million, up 14% from $490 million a year ago |
| Operating margin of 16.4%, up from 16.2% the previous year |
FedEx Ground average daily volume grew 7% in the third quarter due to growth in both business to business and home delivery services. Revenue per package increased 3% due to base rate increases and higher dimensional weight charges. FedEx SmartPost average daily volume
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decreased 7% due to the reduction in volume from a major customer. SmartPost revenue per package increased 8% due to rate increases and improved customer mix, partially offset by higher postage costs.
Operating results increased due to higher revenue per package, volume growth, a net benefit from fuel and a lower year-over-year weather impact, partially offset by network expansion costs.
FedEx Corp. completed the acquisition of third-party logistics provider GENCO Distribution System, Inc. on January 30, 2015. The financial results of GENCO are included within the FedEx Ground segment from the date of acquisition. GENCO had an immaterial impact on the quarters results.
FedEx Freight Segment
For the third quarter, the FedEx Freight segment reported:
| Revenue of $1.43 billion, up 6% from last years $1.35 billion |
| Operating income of $68 million, up 94% from $35 million a year ago |
| Operating margin of 4.8%, up from 2.6% the previous year |
Less-than-truckload (LTL) average daily shipments increased 3%, while LTL revenue per shipment grew 3% due to higher rates.
Operating results improved due to the positive impacts of higher LTL revenue per shipment and higher average daily LTL shipments.
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 $47 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 325,000 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 third quarter fiscal 2015 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 March 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.
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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, our ability to execute on our profit improvement programs, legal challenges or changes related to FedEx Grounds 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
# # #
4
FEDEX CORP. FINANCIAL HIGHLIGHTS
Third Quarter Fiscal 2015
(In millions, except earnings per share)
(Unaudited)
Three Months Ended February 28 |
Nine Months Ended February 28 |
|||||||||||||||||||||||
2015 | 2014 | % | 2015 | 2014 | % | |||||||||||||||||||
Revenue: |
||||||||||||||||||||||||
FedEx Express segment |
$ | 6,656 | $ | 6,674 | | $ | 20,542 | $ | 20,123 | 2 | % | |||||||||||||
FedEx Ground segment |
3,393 | 3,031 | 12 | % | 9,416 | 8,610 | 9 | % | ||||||||||||||||
FedEx Freight segment |
1,428 | 1,347 | 6 | % | 4,622 | 4,205 | 10 | % | ||||||||||||||||
FedEx Services segment |
370 | 368 | 1 | % | 1,138 | 1,134 | | |||||||||||||||||
Eliminations and other |
(131 | ) | (119 | ) | NM | (379 | ) | (344 | ) | NM | ||||||||||||||
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|
|
|
|
|
|
|||||||||||||||||
Total Revenue |
11,716 | 11,301 | 4 | % | 35,339 | 33,728 | 5 | % | ||||||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
Salaries and employee benefits |
4,411 | 4,167 | 6 | % | 12,904 | 12,392 | 4 | % | ||||||||||||||||
Purchased transportation |
2,165 | 2,063 | 5 | % | 6,404 | 5,982 | 7 | % | ||||||||||||||||
Rentals and landing fees |
686 | 662 | 4 | % | 2,009 | 1,950 | 3 | % | ||||||||||||||||
Depreciation and amortization |
652 | 652 | | 1,954 | 1,938 | 1 | % | |||||||||||||||||
Fuel |
810 | 1,163 | (30 | %) | 2,982 | 3,403 | (12 | %) | ||||||||||||||||
Maintenance and repairs |
505 | 438 | 15 | % | 1,604 | 1,397 | 15 | % | ||||||||||||||||
Other |
1,525 | 1,515 | 1 | % | 4,520 | 4,403 | 3 | % | ||||||||||||||||
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|
|
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|
|
|||||||||||||||||
Total Operating Expenses |
10,754 | 10,660 | 1 | % | 32,377 | 31,465 | 3 | % | ||||||||||||||||
Operating Income: |
||||||||||||||||||||||||
FedEx Express segment |
384 | 168 | 129 | % | 1,237 | 798 | 55 | % | ||||||||||||||||
FedEx Ground segment |
558 | 490 | 14 | % | 1,568 | 1,412 | 11 | % | ||||||||||||||||
FedEx Freight segment |
68 | 35 | 94 | % | 348 | 217 | 60 | % | ||||||||||||||||
Corporate, eliminations and other |
(48 | ) | (52 | ) | NM | (191 | ) | (164 | ) | NM | ||||||||||||||
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|
|||||||||||||||||
Total Operating Income |
962 | 641 | 50 | % | 2,962 | 2,263 | 31 | % | ||||||||||||||||
Other Expense: |
||||||||||||||||||||||||
Interest, net |
(58 | ) | (38 | ) | NM | (153 | ) | (95 | ) | NM | ||||||||||||||
Other, net |
5 | (9 | ) | NM | 8 | (16 | ) | NM | ||||||||||||||||
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Total Other Expense |
(53 | ) | (47 | ) | NM | (145 | ) | (111 | ) | NM | ||||||||||||||
Pretax Income |
909 | 594 | 53 | % | 2,817 | 2,152 | 31 | % | ||||||||||||||||
Provision for Income Taxes |
329 | 216 | 52 | % | 1,015 | 785 | 29 | % | ||||||||||||||||
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Net Income |
$ | 580 | $ | 378 | 53 | % | $ | 1,802 | $ | 1,367 | 32 | % | ||||||||||||
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Diluted Earnings Per Share |
$ | 2.01 | $ | 1.23 | 63 | % | $ | 6.25 | $ | 4.34 | 44 | % | ||||||||||||
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Weighted Average Common and Common Equivalent Shares |
287 | 307 | (7 | %) | 288 | 315 | (9 | %) | ||||||||||||||||
Capital Expenditures |
$ | 1,080 | $ | 864 | 25 | % | $ | 2,969 | $ | 2,554 | 16 | % |
5
FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS
Third Quarter Fiscal 2015
(In millions)
Feb. 28, 2015 (Unaudited) |
May 31, 2014 | |||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 3,478 | $ | 2,908 | ||||
Receivables, less allowances |
5,584 | 5,460 | ||||||
Spare parts, supplies and fuel, less allowances |
488 | 463 | ||||||
Deferred income taxes |
510 | 522 | ||||||
Prepaid expenses and other |
422 | 330 | ||||||
|
|
|
|
|||||
Total current assets |
10,482 | 9,683 | ||||||
Property and Equipment, at Cost |
42,652 | 40,691 | ||||||
Less accumulated depreciation and amortization |
22,227 | 21,141 | ||||||
|
|
|
|
|||||
Net property and equipment |
20,425 | 19,550 | ||||||
Other Long-Term Assets |
||||||||
Goodwill |
3,805 | 2,790 | ||||||
Other assets |
1,396 | 1,047 | ||||||
|
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|
|
|||||
Total other long-term assets |
5,201 | 3,837 | ||||||
|
|
|
|
|||||
$ | 36,108 | $ | 33,070 | |||||
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|
|
|||||
LIABILITIES AND STOCKHOLDERS INVESTMENT |
||||||||
Current Liabilities |
||||||||
Current portion of long-term debt |
$ | | $ | 1 | ||||
Accrued salaries and employee benefits |
1,231 | 1,277 | ||||||
Accounts payable |
2,050 | 1,971 | ||||||
Accrued expenses |
1,962 | 2,063 | ||||||
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|
|||||
Total current liabilities |
5,243 | 5,312 | ||||||
Long-Term Debt, Less Current Portion |
7,228 | 4,736 | ||||||
Other Long-Term Liabilities |
||||||||
Deferred income taxes |
2,497 | 2,114 | ||||||
Pension, postretirement healthcare and other benefit obligations |
2,962 | 3,484 | ||||||
Self-insurance accruals |
1,092 | 1,038 | ||||||
Deferred lease obligations |
694 | 758 | ||||||
Deferred gains, principally related to aircraft transactions |
187 | 206 | ||||||
Other liabilities |
193 | 145 | ||||||
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|
|
|||||
Total other long-term liabilities |
7,625 | 7,745 | ||||||
Commitments and Contingencies |
||||||||
Common Stockholders Investment |
||||||||
Common stock, $0.10 par value, 800 million shares authorized |
32 | 32 | ||||||
Additional paid-in capital |
2,739 | 2,643 | ||||||
Retained earnings |
21,880 | 20,429 | ||||||
Accumulated other comprehensive loss |
(3,909 | ) | (3,694 | ) | ||||
Treasury stock, at cost |
(4,730 | ) | (4,133 | ) | ||||
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|
|||||
Total common stockholders investment |
16,012 | 15,277 | ||||||
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|||||
$ | 36,108 | $ | 33,070 | |||||
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6
FEDEX CORP. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Third Quarter Fiscal 2015
(In millions)
(Unaudited)
Nine Months Ended February 28 |
||||||||
2015 | 2014 | |||||||
Operating Activities: |
||||||||
Net income |
$ | 1,802 | $ | 1,367 | ||||
Noncash charges: |
||||||||
Depreciation and amortization |
1,954 | 1,938 | ||||||
Other, net |
580 | 581 | ||||||
Changes in operating assets and liabilities, net |
(863 | ) | (1,308 | ) | ||||
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|
|||||
Net cash provided by operating activities |
3,473 | 2,578 | ||||||
Investing Activities: |
||||||||
Capital expenditures |
(2,969 | ) | (2,554 | ) | ||||
Business acquisitions, net of cash acquired |
(1,429 | ) | | |||||
Proceeds from asset dispositions and other |
16 | 23 | ||||||
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|||||
Net cash used in investing activities |
(4,382 | ) | (2,531 | ) | ||||
Financing Activities: |
||||||||
Principal payments on debt |
(1 | ) | (254 | ) | ||||
Proceeds from debt issuances |
2,491 | 1,997 | ||||||
Dividends paid |
(171 | ) | (142 | ) | ||||
Purchase of treasury stock |
(1,016 | ) | (3,984 | ) | ||||
Other, net |
280 | 471 | ||||||
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|||||
Net cash provided by (used in) financing activities |
1,583 | (1,912 | ) | |||||
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|||||
Effect of exchange rate changes on cash |
104 | (10 | ) | |||||
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|||||
Net increase (decrease) in cash and cash equivalents |
570 | (1,875 | ) | |||||
Cash and cash equivalents at beginning of period |
2,908 | 4,917 | ||||||
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|||||
Cash and cash equivalents at end of period |
$ | 3,478 | $ | 3,042 | ||||
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7
FEDEX EXPRESS SEGMENT FINANCIAL HIGHLIGHTS
Third Quarter Fiscal 2015
(Dollars in millions)
(Unaudited)
Three Months Ended February 28 |
Nine Months Ended February 28 |
|||||||||||||||||||||||
2015 | 2014 | % | 2015 | 2014 | % | |||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Package Revenue: |
||||||||||||||||||||||||
U.S. Overnight Box |
$ | 1,653 | $ | 1,643 | 1 | % | $ | 5,040 | $ | 4,852 | 4 | % | ||||||||||||
U.S. Overnight Envelope |
392 | 393 | | 1,207 | 1,210 | | ||||||||||||||||||
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Total U.S. Overnight |
2,045 | 2,036 | | 6,247 | 6,062 | 3 | % | |||||||||||||||||
U.S. Deferred |
895 | 869 | 3 | % | 2,524 | 2,369 | 7 | % | ||||||||||||||||
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|
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Total U.S. Package Revenue |
2,940 | 2,905 | 1 | % | 8,771 | 8,431 | 4 | % | ||||||||||||||||
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International Priority |
1,463 | 1,542 | (5 | %) | 4,742 | 4,760 | | |||||||||||||||||
International Economy |
560 | 540 | 4 | % | 1,729 | 1,639 | 5 | % | ||||||||||||||||
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Total International Export Package |
2,023 | 2,082 | (3 | %) | 6,471 | 6,399 | 1 | % | ||||||||||||||||
International Domestic1 |
328 | 347 | (5 | %) | 1,082 | 1,077 | | |||||||||||||||||
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|
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Total Package Revenue |
5,291 | 5,334 | (1 | %) | 16,324 | 15,907 | 3 | % | ||||||||||||||||
Freight Revenue: |
||||||||||||||||||||||||
U.S. |
580 | 577 | 1 | % | 1,745 | 1,786 | (2 | %) | ||||||||||||||||
International Priority |
375 | 379 | (1 | %) | 1,182 | 1,184 | | |||||||||||||||||
International Airfreight |
45 | 48 | (6 | %) | 133 | 157 | (15 | %) | ||||||||||||||||
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|
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Total Freight Revenue |
1,000 | 1,004 | | 3,060 | 3,127 | (2 | %) | |||||||||||||||||
Other Revenue2 |
365 | 336 | 9 | % | 1,158 | 1,089 | 6 | % | ||||||||||||||||
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|
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Total Express Revenue |
$ | 6,656 | $ | 6,674 | | $ | 20,542 | $ | 20,123 | 2 | % | |||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
Salaries and employee benefits |
2,580 | 2,509 | 3 | % | 7,596 | 7,418 | 2 | % | ||||||||||||||||
Purchased transportation |
614 | 608 | 1 | % | 1,942 | 1,876 | 4 | % | ||||||||||||||||
Rentals and landing fees |
436 | 432 | 1 | % | 1,284 | 1,273 | 1 | % | ||||||||||||||||
Depreciation and amortization |
364 | 374 | (3 | %) | 1,106 | 1,116 | (1 | %) | ||||||||||||||||
Fuel |
697 | 1,010 | (31 | %) | 2,573 | 2,952 | (13 | %) | ||||||||||||||||
Maintenance and repairs |
324 | 273 | 19 | % | 1,060 | 888 | 19 | % | ||||||||||||||||
Intercompany charges3 |
461 | 474 | (3 | %) | 1,363 | 1,413 | (4 | %) | ||||||||||||||||
Other |
796 | 826 | (4 | %) | 2,381 | 2,389 | | |||||||||||||||||
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|
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Total Operating Expenses3 |
6,272 | 6,506 | (4 | %) | 19,305 | 19,325 | | |||||||||||||||||
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|
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Operating Income3 |
$ | 384 | $ | 168 | 129 | % | $ | 1,237 | $ | 798 | 55 | % | ||||||||||||
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|
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Operating Margin3 |
5.8 | % | 2.5 | % | 3.3 | pts | 6.0 | % | 4.0 | % | 2.0 | pts |
1 - International Domestic revenues represent international intra-country express operations.
2 - Includes FedEx Trade Networks, FedEx SupplyChain Systems and Bongo International.
3 - Prior year amounts have been revised to conform to the current year segment presentation regarding the allocation of corporate headquarters costs.
8
FEDEX EXPRESS SEGMENT OPERATING HIGHLIGHTS
Third Quarter Fiscal 2015
(Unaudited)
Three Months Ended February 28 |
Nine Months Ended February 28 |
|||||||||||||||||||||||
2015 | 2014 | % | 2015 | 2014 | % | |||||||||||||||||||
PACKAGE STATISTICS1 |
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Average Daily Package Volume (000s): |
||||||||||||||||||||||||
U.S. Overnight Box |
1,258 | 1,202 | 5 | % | 1,243 | 1,153 | 8 | % | ||||||||||||||||
U.S. Overnight Envelope |
516 | 515 | | 521 | 538 | (3 | %) | |||||||||||||||||
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Total U.S. Overnight Package |
1,774 | 1,717 | 3 | % | 1,764 | 1,691 | 4 | % | ||||||||||||||||
U.S. Deferred |
1,024 | 984 | 4 | % | 928 | 871 | 7 | % | ||||||||||||||||
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Total U.S. Domestic Package |
2,798 | 2,701 | 4 | % | 2,692 | 2,562 | 5 | % | ||||||||||||||||
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International Priority |
398 | 399 | | 410 | 409 | | ||||||||||||||||||
International Economy |
175 | 168 | 4 | % | 175 | 168 | 4 | % | ||||||||||||||||
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Total International Export Package |
573 | 567 | 1 | % | 585 | 577 | 1 | % | ||||||||||||||||
International Domestic2 |
831 | 780 | 7 | % | 854 | 822 | 4 | % | ||||||||||||||||
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Total Average Daily Packages |
4,202 | 4,048 | 4 | % | 4,131 | 3,961 | 4 | % | ||||||||||||||||
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Yield (Revenue Per Package): |
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U.S. Overnight Box |
$ | 20.85 | $ | 21.70 | (4 | %) | $ | 21.34 | $ | 22.15 | (4 | %) | ||||||||||||
U.S. Overnight Envelope |
12.07 | 12.09 | | 12.18 | 11.84 | 3 | % | |||||||||||||||||
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U.S. Overnight Composite |
18.30 | 18.82 | (3 | %) | 18.64 | 18.87 | (1 | %) | ||||||||||||||||
U.S. Deferred |
13.88 | 14.01 | (1 | %) | 14.32 | 14.31 | | |||||||||||||||||
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U.S. Domestic Composite |
16.68 | 17.07 | (2 | %) | 17.15 | 17.32 | (1 | %) | ||||||||||||||||
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International Priority |
58.40 | 61.38 | (5 | %) | 60.79 | 61.30 | (1 | %) | ||||||||||||||||
International Economy |
50.60 | 51.01 | (1 | %) | 52.03 | 51.24 | 2 | % | ||||||||||||||||
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Total International Export Composite |
56.01 | 58.30 | (4 | %) | 58.17 | 58.37 | | |||||||||||||||||
International Domestic2 |
6.28 | 7.05 | (11 | %) | 6.67 | 6.90 | (3 | %) | ||||||||||||||||
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Composite Package Yield |
$ | 19.99 | $ | 20.91 | (4 | %) | $ | 20.80 | $ | 21.14 | (2 | %) | ||||||||||||
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FREIGHT STATISTICS |
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Average Daily Freight Pounds (000s): |
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U.S. |
8,145 | 8,263 | (1 | %) | 7,831 | 7,850 | | |||||||||||||||||
International Priority |
2,823 | 2,823 | | 2,866 | 2,917 | (2 | %) | |||||||||||||||||
International Airfreight |
718 | 757 | (5 | %) | 673 | 839 | (20 | %) | ||||||||||||||||
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Total Avg Daily Freight Pounds |
11,686 | 11,843 | (1 | %) | 11,370 | 11,606 | (2 | %) | ||||||||||||||||
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Revenue Per Freight Pound: |
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U.S. |
$ | 1.13 | $ | 1.11 | 2 | % | $ | 1.17 | $ | 1.20 | (3 | %) | ||||||||||||
International Priority |
2.11 | 2.13 | (1 | %) | 2.17 | 2.14 | 1 | % | ||||||||||||||||
International Airfreight |
1.00 | 1.00 | | 1.04 | 0.98 | 6 | % | |||||||||||||||||
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Composite Freight Yield |
$ | 1.36 | $ | 1.35 | 1 | % | $ | 1.42 | $ | 1.42 | | |||||||||||||
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Operating Weekdays |
63 | 63 | | 190 | 190 | |
1 - Package and freight statistics include only the operations of FedEx Express.
2 - International Domestic revenues represent international intra-country express operations.
9
FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
Third Quarter Fiscal 2015
(Dollars in millions)
(Unaudited)
Three Months Ended February 28 |
Nine Months Ended February 28 |
|||||||||||||||||||||||
2015 | 2014 | % | 2015 | 2014 | % | |||||||||||||||||||
FINANCIAL HIGHLIGHTS |
||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
FedEx Ground |
$ | 3,021 | $ | 2,751 | 10 | % | $ | 8,569 | $ | 7,858 | 9 | % | ||||||||||||
FedEx SmartPost |
285 | 280 | 2 | % | 760 | 752 | 1 | % | ||||||||||||||||
GENCO1 |
87 | | NM | 87 | | NM | ||||||||||||||||||
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Total Revenues |
3,393 | 3,031 | 12 | % | 9,416 | 8,610 | 9 | % | ||||||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
Salaries and employee benefits |
565 | 460 | 23 | % | 1,498 | 1,319 | 14 | % | ||||||||||||||||
Purchased transportation |
1,348 | 1,253 | 8 | % | 3,765 | 3,476 | 8 | % | ||||||||||||||||
Rentals |
126 | 105 | 20 | % | 349 | 299 | 17 | % | ||||||||||||||||
Depreciation and amortization |
136 | 121 | 12 | % | 381 | 350 | 9 | % | ||||||||||||||||
Fuel |
3 | 7 | (57 | %) | 9 | 14 | (36 | %) | ||||||||||||||||
Maintenance and repairs |
61 | 57 | 7 | % | 174 | 166 | 5 | % | ||||||||||||||||
Intercompany charges2 |
281 | 274 | 3 | % | 834 | 821 | 2 | % | ||||||||||||||||
Other |
315 | 264 | 19 | % | 838 | 753 | 11 | % | ||||||||||||||||
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Total Operating Expenses2 |
2,835 | 2,541 | 12 | % | 7,848 | 7,198 | 9 | % | ||||||||||||||||
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Operating Income2 |
$ | 558 | $ | 490 | 14 | % | $ | 1,568 | $ | 1,412 | 11 | % | ||||||||||||
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Operating Margin2 |
16.4 | % | 16.2 | % | 0.2 | pts | 16.7 | % | 16.4 | % | 0.3 | pts | ||||||||||||
OPERATING STATISTICS |
||||||||||||||||||||||||
Operating Weekdays |
||||||||||||||||||||||||
FedEx Ground |
63 | 63 | | 190 | 190 | | ||||||||||||||||||
FedEx SmartPost |
61 | 61 | | 188 | 188 | | ||||||||||||||||||
Average Daily Package Volume (000s) |
||||||||||||||||||||||||
FedEx Ground |
5,136 | 4,817 | 7 | % | 4,851 | 4,584 | 6 | % | ||||||||||||||||
FedEx SmartPost |
2,360 | 2,529 | (7 | %) | 2,117 | 2,276 | (7 | %) | ||||||||||||||||
Yield (Revenue Per Package) |
||||||||||||||||||||||||
FedEx Ground |
$ | 9.32 | $ | 9.04 | 3 | % | $ | 9.28 | $ | 9.00 | 3 | % | ||||||||||||
FedEx SmartPost |
$ | 1.97 | $ | 1.82 | 8 | % | $ | 1.91 | $ | 1.76 | 9 | % |
1 - Net revenues for GENCO are included from the January 30, 2015 date of closing.
2 - Prior year amounts have been revised to conform to the current year segment presentation regarding the allocation of corporate headquarters costs.
10
FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
Third Quarter Fiscal 2015
(Dollars in millions)
(Unaudited)
Three Months Ended February 28 |
Nine Months Ended February 28 |
|||||||||||||||||||||||
2015 | 2014 | % | 2015 | 2014 | % | |||||||||||||||||||
FINANCIAL HIGHLIGHTS |
||||||||||||||||||||||||
Revenue |
$ | 1,428 | $ | 1,347 | 6 | % | $ | 4,622 | $ | 4,205 | 10 | % | ||||||||||||
Operating Expenses: |
||||||||||||||||||||||||
Salaries and employee benefits |
663 | 598 | 11 | % | 2,005 | 1,807 | 11 | % | ||||||||||||||||
Purchased transportation |
235 | 231 | 2 | % | 792 | 715 | 11 | % | ||||||||||||||||
Rentals |
33 | 31 | 6 | % | 96 | 94 | 2 | % | ||||||||||||||||
Depreciation and amortization |
54 | 58 | (7 | %) | 170 | 172 | (1 | %) | ||||||||||||||||
Fuel |
109 | 146 | (25 | %) | 399 | 436 | (8 | %) | ||||||||||||||||
Maintenance and repairs |
49 | 42 | 17 | % | 148 | 134 | 10 | % | ||||||||||||||||
Intercompany charges1 |
108 | 105 | 3 | % | 329 | 329 | | |||||||||||||||||
Other |
109 | 101 | 8 | % | 335 | 301 | 11 | % | ||||||||||||||||
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Total Operating Expenses1 |
1,360 | 1,312 | 4 | % | 4,274 | 3,988 | 7 | % | ||||||||||||||||
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Operating Income1 |
$ | 68 | $ | 35 | 94 | % | $ | 348 | $ | 217 | 60 | % | ||||||||||||
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Operating Margin1 |
4.8 | % | 2.6 | % | 2.2 | pts | 7.5 | % | 5.2 | % | 2.3 | pts | ||||||||||||
OPERATING STATISTICS |
||||||||||||||||||||||||
LTL Operating Weekdays |
62 | 62 | | 188 | 188 | | ||||||||||||||||||
Average Daily LTL Shipments (000s) |
||||||||||||||||||||||||
Priority |
62.0 | 59.5 | 4 | % | 67.1 | 61.5 | 9 | % | ||||||||||||||||
Economy |
26.8 | 26.3 | 2 | % | 28.4 | 27.3 | 4 | % | ||||||||||||||||
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Total Average Daily LTL Shipments |
88.8 | 85.8 | 3 | % | 95.5 | 88.8 | 8 | % | ||||||||||||||||
Weight Per LTL Shipment (lbs) |
||||||||||||||||||||||||
Priority |
1,287 | 1,280 | 1 | % | 1,262 | 1,255 | 1 | % | ||||||||||||||||
Economy |
1,007 | 1,002 | | 1,010 | 995 | 2 | % | |||||||||||||||||
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Composite Weight Per LTL Shipment |
1,203 | 1,195 | 1 | % | 1,187 | 1,175 | 1 | % | ||||||||||||||||
LTL Revenue/Shipment |
||||||||||||||||||||||||
Priority |
$ | 231.92 | $ | 224.63 | 3 | % | $ | 229.43 | $ | 222.99 | 3 | % | ||||||||||||
Economy |
265.66 | 257.74 | 3 | % | 265.51 | 257.10 | 3 | % | ||||||||||||||||
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Composite LTL Revenue/Shipment |
$ | 242.52 | $ | 235.14 | 3 | % | $ | 240.30 | $ | 233.61 | 3 | % | ||||||||||||
LTL Yield (Revenue/CWT) |
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Priority |
$ | 18.02 | $ | 17.54 | 3 | % | $ | 18.18 | $ | 17.77 | 2 | % | ||||||||||||
Economy |
26.38 | 25.71 | 3 | % | 26.29 | 25.83 | 2 | % | ||||||||||||||||
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Composite LTL Yield |
$ | 20.17 | $ | 19.67 | 3 | % | $ | 20.24 | $ | 19.88 | 2 | % |
1 - Prior year amounts have been revised to conform to the current year segment presentation regarding the allocation of corporate headquarters costs.
11
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