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FEDERAL EXPRESS REPORTS SECOND QUARTER, FISCAL 1992 FINANCIAL RESULTS

FEDERAL EXPRESS REPORTS SECOND QUARTER, FISCAL 1992 FINANCIAL RESULTS
 MEMPHIS, Tenn., Dec. 17 /PRNewswire/ -- Federal Express Corporation (NYSE: FDX) announced today that total revenues for the company's second fiscal quarter ended Nov. 30, 1991, were $1.9 billion, down 2 percent from the prior year. The company noted that, in comparison, last year's revenue included non-express package revenue from the company's operations in the United Kingdom which were downsized in the third quarter of last year and significantly more charter business associated with the Desert Shield operation.
 Operating expenses in this year's second quarter were down 1 percent, resulting in operating income of $98.9 million, 21 percent lower than last year's $125.8 million. Pre-tax income declined 34 percent from $76.6 million to $50.6 million, net income by 29 percent from $37.5 million to $26.5 million, and earnings per share by 31 percent from 71 cents to 49 cents.
 The company reported international revenues of $651.6 million during the quarter compared with $719.9 million in the second quarter last year, and an international operating loss of $64.5 million this year compared with a $54.7 million loss in the comparable quarter last year.
 The company also announced that it has received a Notice of Deficiency for $56.4 million from the Internal Revenue Service relating to an IRS audit of its federal transportation excise tax returns from December 1983 to March 1987. The company said it believes the IRS is incorrect with respect to the proposed adjustment and plans to file a protest with the IRS in January 1992 to contest the matter.
 Commenting on the second quarter, Chief Executive Officer Frederick W. Smith said, "The quarter's results reflect the continuing impact of a stagnant economy. The lengthy recession has increased price sensitivity in all of our markets, placing more pressure on our profit margins. Also, we have experienced disappointing growth in domestic services in the highly competitive European market.
 "Internationally, we have stressed service superiority and continue to experience growth in the time definite services. The International Priority volume was up 32 percent this quarter and the International EXPRESSfreight (IXF) poundage was up 31 percent.
 "Despite the economy, we have actively pursued ways to expand our customer base and build on our strengths," Smith continued. "We have provided a more economical service that allows our cost-conscious customers in the U.S. to receive next-day afternoon service. We have increased the scope and the availability of our customer automation systems, and we have maintained the highest service standards in the industry."
 FEDERAL EXPRESS CORPORATION
 Financial Highlights
 (In thousands, except earnings per share and operating data)
 Periods ended Three months Six months
 Nov. 30: 1991 1990 1991 1990
 Revenues $1,943,406 $1,993,092 $3,769,191 $3,909,609
 Operating income 98,943 125,757 179,228 254,992
 Income before
 income taxes 50,628 76,643 84,149 159,158
 Net income 26,527 37,474 43,757 80,534
 Earnings per share $.49 $.71 $.81 $1.51
 Common and common
 equivalent shares 53,722 53,043 53,750 53,198
 Operating data
 Total Volume (000s) 89,584 81,295 175,740 164,391
 Avg. rev. per package $16.70 $17.59 $16.68 $17.47
 Avg. revenue per pound $2.96 $3.08 $3.01 $3.13
 Avg. pounds per package 5.6 5.7 5.6 5.6
 Operating weekdays 63 63 127 128
 Heavyweight (millions
 of pounds)
 Total volume 190.9 220.8 348.1 431.5
 Avg. revenue per pound $1.21 $1.21 $1.20 $1.13
 -0- 12/17/91
 /CONTACT: Dan Copp of Federal Express, 901-395-3490/ CO: Federal Express Corporation ST: Tennessee IN: SU: ERN


GK-TS -- NY008 -- 2812 12/17/91 08:13 EST
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Publication:PR Newswire
Date:Dec 17, 1991
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