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FEDERAL EXPRESS CORPORATION REPORTS FISCAL 1993 FINANCIAL RESULTS

 MEMPHIS, July 13 /PRNewswire/ -- Federal Express Corporation (NYSE: FDX) today announced that net income for the quarter ended May 31 was $55.8 million, a 56 percent increase over the prior year's fourth quarter net income of $35.8 million.
 Revenues for the quarter increased 8 percent, year over year, to $2,038.7 million from $1,891.3 million, operating income increased 24 percent to $136.5 million from $109.8 million, pretax income increased 43 percent to $96.0 million from $67.0 million and earnings per share increased 53 percent to $1.01 for the quarter from last year's $0.66.
 The company also reported an international operating loss for the fourth quarter of $25.4 million on international segment revenues of $539.2 million, compared with an operating loss of $53.2 million on revenues of $536.1 million in last year's fourth quarter.
 Fiscal Year Results
 For the full year, revenues were $7.8 billion compared to $7.6 billion last year. Net income, exclusive of one-time charges, was $109.8 million, $2.01 per share, in fiscal 1993, compared to $54.7 million, $1.01 per share, in the prior year. Including the one-time charges, net income was $53.9 million, $0.98 per share, in fiscal 1993, compared to a loss of $113.8 million, a loss of $2.11 per share, in fiscal 1992.
 The one-time charges include, for 1993, the effect of the adoption of Statement of Financial Accounting Standards No. 106 (SFAS 106), "Employers' Accounting For Postretirement Benefits Other Than Pensions" and a $254 million pre-tax, $3.12 per share, restructuring charge in last year's third quarter associated with the discontinuance of certain intra-European operations.
 The fiscal 1993 accounting change requires that postretirement health care benefit costs be recognized and recorded over the applicable employee service period, rather than being expensed as they occur. Adoption of the accounting standard, effective June 1, 1992, resulted in a $55.9 million after-tax, $1.03 per share, cumulative adjustment to earnings that was retroactively recorded in fiscal 1993's first quarter. In addition to the cumulative charge, fiscal 1993 quarterly results have been restated for the operating expense impact related to this accounting change.
 The net effect of SFAS 106 adoption is shown below:
 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 FY 93
 EPS before SFAS
 106 Adoption $0.23 $0.70 $0.19 $1.05 $2.17
 Operating expense
 impact of SFAS 106 ($0.04) ($0.05) ($0.04) ($0.04) ($0.16)
 Cumulative adjustment
 for SFAS 106 ($1.03) -- -- -- ($1.03)
 EPS after adoption
 of SFAS 106 ($0.84) $0.65 $0.15 $1.01 $0.98
 Full-year financial comparisons, excluding both the cumulative charge related to the adoption of SFAS 106 in fiscal 1993 and the fiscal 1992 restructuring charge, are shown on the table below:
 In millions, FY 1993 FY 1992
 except per (excluding cumulative (excluding Qtr 3
 share data effect of accounting change) restructuring charge)
 Revenues $7,808.0 $7,550.1
 Operating income $377.2 $277.0
 Pretax income $203.6 $107.2
 Net income $109.8 $54.7
 Earnings per share $2.01 $1.01
 Operating income (loss)
 by business segment:
 U.S. domestic $559.2 $635.9
 International ($182.0) ($358.9)
 Commenting on the quarter's results, Chairman and Chief Executive Officer Frederick W. Smith said, "Our much-improved fourth quarter financial results reflect the benefits of our strategy to replace less profitable intra-European shipments and non-time-definite air freight with our time-definite International Priority packages and International Expressfreight. In a still-depressed world economy, the benefits of the fastest, most reliable time-definite method of transporting packages and freight continue to gain new customers for Federal Express."
 "Excluding the discontinued intra-European traffic from last year's numbers," Smith continued, "our International Priority (IP) express package volume grew by 15 percent in fiscal 1993, with a slight increase in yield -- a revenue growth in IP of about $160 million from a fiscal 1992 revenue base of $950 million. This type of progress keeps our goal of international profitability in fiscal 1995 on track."
 Commenting on the U.S. domestic operations, Chief Financial Officer Alan B. Graf, Jr. said, "The U.S. domestic segment's financial results were down this year, with our average price per package dropping faster than our costs. Despite this," Graf continued, "our U.S. operations produced some positive year-over-year gains in fiscal 1993. Our average daily package volume grew 17 percent and we reduced our cost-per-package by 4 percent. Although revenue-per-package declined 7 percent year- over-year, the rate of decline slowed to just 3 percent in the fourth quarter. Overall, our package growth rates, our delivery service levels and our technology innovations this year helped us maintain our leadership position in the express package industry."
 FEDERAL EXPRESS CORPORATION
 Financial Highlights
 (In thousands, except earnings per share and operating data)
 Periods Ended Three Months Fiscal Year
 May 31, 1993 1992 1993 1992
 Financial results
 Revenues $2,038,652 $1,891,333 $7,808,043 $7,550,060
 Operating income 136,473 109,841 337,173 22,967
 Pretax income (loss) 95,966 67,013 203,576 (146,828)
 Provision (benefit)
 for income taxes 40,194 31,194 93,767 (33,046)
 Income (loss) before
 cumulative effect of
 change in accounting
 principle $55,772 $35,819 $109,809 ($113,782)
 Cumulative effect of
 change in accounting
 for postretirement
 benefits (charge of
 $90,230 before tax) -- -- (55,943) --
 Net income (loss) $55,772 $35,819 $53,866 ($113,782)
 Earnings (loss) per share:
 Before cumulative effect
 of change in accounting
 principle $1.01 $0.66 $2.01 ($2.11)
 Cumulative effect of
 change in accounting
 principle -- -- -- --
 Earnings (loss) per share $1.01 $0.66 $0.98 ($2.11)
 Common and common
 equivalent shares 55,189 54,404 54,719 53,961
 Package Operating Data
 U.S. Domestic
 packages (000) 107,897 94,909 406,387 345,967
 International
 packages (000) 7,874 7,105 29,253 27,545
 Total package
 volume (000) 115,771 102,014 435,640 373,512
 Avg. revenue per U.S.
 domestic pkg. $13.28 $13.69 $13.32 $14.37
 Avg. revenue per
 int'l. pkg. $38.54 $36.07 $38.18 $37.54
 Average revenue
 per package $15.00 $15.25 $14.99 $16.08
 Average revenue
 per pound $2.67 $2.84 $2.67 $2.95
 Average pounds
 per package 5.6 5.4 5.6 5.5
 Operating weekdays 65 64 255 254
 Air Freight Data
 U.S. domestic
 air freight (mil lbs) 27.3 26.2 107.2 100.7
 International
 air freight (mil lbs) 115.1 139.2 522.8 573.6
 Total volume
 (million pounds) 142.4 165.4 630.0 674.3
 Average revenue
 per pound $1.04 $1.11 $1.05 $1.16
 -0- 7/13/93
 /CONTACT: Tom Martin, 901-395-3490, or Brandon Davis, 901-395-3755, both of Federal Express/
 (FDX)


CO: Federal Express Corporation ST: Tennessee IN: TRN SU: ERN

LD-MG -- NY070 -- 1132 07/13/93 18:57 EDT
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