FedEx Reports Strong Revenue and Earnings Growth; Operating Margins Improve Across All Transportation Segments.MEMPHIS Memphis, city, ancient Egypt Memphis (mĕm`fĭs), ancient city of Egypt, capital of the Old Kingdom (c.3100–c.2258 B.C.), at the apex of the Nile delta and 12 mi (18 km) from Cairo. , Tenn. -- FedEx Corporation (NYSE NYSE See: New York Stock Exchange : FDX See full-duplex. fdx - full-duplex ) today reported earnings of $1.38 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the third quarter ended February February: see month. 28, compared to $1.03 per diluted share a year ago, a year-over-year increase of 34%. FedEx Corp. reported the following consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results for the third quarter: --Revenue of $8.00 billion, up 9% from $7.34 billion the previous year --Operating income of $713 million, up 29% from $552 million a year ago --Operating margin of 8.9%, up from last year's 7.5% --Net income of $428 million, up 35% from $317 million the previous year "FedEx continues to deliver strong results by providing outstanding customer service around the world and by crisply crisp adj. crisp·er, crisp·est 1. Firm but easily broken or crumbled; brittle: crisp potato chips. 2. executing our strategy of balancing volume and revenue growth with cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. to improve our margins," said Frederick W. Smith
Frederick Wallace Smith (born August 11, 1944), or Fred Smith, is the founder, chairman, president, and CEO of FedEx, originally known as Federal Express, the , chairman, president and chief executive officer of FedEx Corp. "With our broad portfolio of services, FedEx is uniquely positioned to take advantage of continued growth in the global economy." Total combined average daily package volume at FedEx Ground FedEx Ground is a shipping company headquartered in Moon Township, Pennsylvania, a suburb of Pittsburgh. Originally a small regional package shipping company called Roadway Package System (RPS), it was created to be a discount competitor to UPS. and FedEx Express FedEx Express, based in Memphis, Tennessee, USA, is the world's largest cargo airline. It is a subsidiary of the FedEx Corporation and delivers packages and freight to more than 220 countries each day[1]. grew 4% year over year for the quarter, led by improved ground and international express package growth. Yield management remains a top priority across all transportation services. During the quarter, continued yield management actions in FedEx Express U.S. deferred services boosted yields while resulting in lower U.S. deferred express volume. FedEx ranked second in FORTUNE magazine's most recent "America's Most Admired Companies A yearly publication by Fortune Magazine, America's Most Admired Companies consists of corporations that are highly esteemed by the likes of Business Executives, Directors, and Analysts. A survey is taken of close to 3300 professionals who give their opinions on the companies. " list and fourth in its "World's Most Admired ad·mire v. ad·mired, ad·mir·ing, ad·mires v.tr. 1. To regard with pleasure, wonder, and approval. 2. To have a high opinion of; esteem or respect. 3. Companies" list. FedEx continues to place in the FORTUNE "100 Best Companies to Work For" list and has the largest employee base on that list. Outlook FedEx expects fourth quarter earnings to be $1.65 to $1.80 per diluted share. The company's earnings guidance for the year is now $5.66 to $5.81 per diluted share compared to previous guidance of $5.45 to $5.70 per diluted share, which includes the net effect of a $0.15 per share lease accounting charge in the first quarter. Excluding the impact of the lease accounting charge, earnings for the year are expected to be $5.81 to $5.96 per diluted share. The capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. forecast for fiscal 2006 is $2.6 billion. "Earnings for our third quarter were better than forecasted due to a stronger than expected holiday peak season for FedEx Ground, improved productivity in our transportation segments, lower than expected fuel costs, deferral deferral - Waiting for quiet on the Ethernet. of advertising and promotion costs to the fourth quarter and a lower effective tax rate," said Alan A`lan´ n. 1. A wolfhound. B. Graf GRAF - GRaphic Additions to Fortran. Fortran plus graphic data types. ["GRAF: Graphic Additions to Fortran", A. Hurwitz et al, Proc SJCC 30 (1967)]. [Sammet 1969, p. 674]. , Jr., executive vice president and chief financial officer. "Our earnings guidance for the fourth quarter, which assumes continued economic growth, reflects a more normal expense trend." FedEx Express Segment For the third quarter, the FedEx Express segment reported: --Revenue of $5.34 billion, up 9% from last year's $4.92 billion --Operating income of $446 million, up 31% from $340 million a year ago --Operating margin of 8.4%, up from 6.9% the previous year FedEx Express operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improved significantly year over year, benefiting from solid growth in FedEx International Priority (IP) and U.S. Overnight revenue, continuing yield management actions and improved productivity. FedEx IP revenue grew 12% for the quarter. IP average daily package volume grew 10%, due to strong growth in Asia and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and continuing
growth in U.S. export. IP revenue per package grew 2% due to higher fuel
surcharges and improved regional mix, partially offset by currency
exchange rate impacts. U.S. domestic revenue per package increased 8%,
while U.S. domestic volume was down 3% resulting from yield management
actions in lower-yielding U.S. deferred services. The increase in U.S.
domestic revenue per package was mainly driven by higher fuel
surcharges, the January January: see month. 2006 price increases and yield management
actions.FedEx Express will begin utilizing three new flight frequencies into China later this month. This will provide the company a total of 26 weekly flights to China, the most of any U.S.-based cargo carrier. On January 24, 2006, FedEx Express entered into an agreement with Tianjin Tianjin or Tientsin (both: tyän`jĭn`), city (1994 est. pop. 4,720,500), NE China. In E central Hebei prov., it is a politically independent unit (4,400 sq mi/11,399 sq km) administered directly by the central government. Datian W. Group Co., Ltd. ("DTW DTW Dynamic Time Warping DTW Dance Theatre Workshop (New York, NY) DTW Depth to Water (denotes depth to water in monitoring wells) DTW DoDIIS Trusted Workstation DTW Development Technology Workshop Group") to acquire DTW Group's fifty percent share of the FedEx-DTW International Priority express joint venture and DTW Group's domestic express network in China for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $400 million in cash. This acquisition will convert the company's joint venture with DTW Group, formed in 1999, into a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. and increase our presence in China in the international and domestic express businesses. The acquisition is expected to be completed in the first half of fiscal 2007. FedEx Ground Segment For the third quarter, the FedEx Ground segment reported: --Revenue of $1.36 billion, up 14% from last year's $1.20 billion --Operating income of $187 million, up 26% from $149 million a year ago --Operating margin of 13.7%, up from 12.4% the previous year FedEx Ground average daily package volume grew 11% year over year in the third quarter. Yield improved 5% primarily due to the January 2006 general rate increase, increased fuel surcharges and higher extra services revenue. Operating margin improved due to revenue growth, higher productivity and effective cost controls, offset in part by investments in new technology and the company's capacity expansion program. There was one fewer operating day in this year's third quarter. FedEx Freight The price or compensation paid for the transportation of goods by a carrier. Freight is also applied to the goods transported by such carriers. The liability of a carrier for freight damaged, lost, or destroyed during shipment is determined by contract, statute, or Segment For the third quarter, the FedEx Freight segment reported: --Revenue of $848 million, up 14% from last year's $747 million --Operating income of $73 million, up 35% from $54 million a year ago --Operating margin of 8.6%, up from 7.2% the previous year Less-than-truckload (LTL LTL - Linear Temporal Logic ) daily shipments increased 7% year over year due to greater demand for FedEx Freight's regional and interregional in·ter·re·gion·al adj. Of, involving, or connecting two or more regions: interregional migration; interregional banking. services. Yield improved 7% year over year reflecting incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. fuel surcharges and higher rates. Operating margin improved during the quarter due to growth in LTL revenue combined with productivity gains. FedEx Kinko's FedEx Kinko's is a chain of stores that provide printing, copying, and binding services. Many FedEx Kinko stores also provide video conferencing facilities. The primary clientele consists of small business and home office clients. Segment For the third quarter, the FedEx Kinko's segment reported: --Revenue of $501 million, up slightly from last year's $499 million --Operating income of $7 million, down 36% from $11 million a year ago --Operating margin of 1.4%, down from 2.2% the previous year FedEx Kinko's revenue for the quarter increased slightly, driven by continued growth from package acceptance revenues and the year over year benefit from the conversion of certain FedEx World Service Centers to FedEx Kinko's Ship Centers in April 2005. This growth was offset by a decline in copy product line revenues, due in part to a competitive pricing environment. Operating margin was negatively affected by the decline in copy revenues and increases in costs associated with technology and product offering initiatives. Increased package acceptance revenues and declines in copy product line revenues are expected to continue in the fourth quarter, as are increased costs to enhance service levels and implement new technologies. During the third quarter, FedEx veteran Kenneth A. May was named president and chief executive officer of FedEx Kinko's and Brian The name Brian (sometimes spelled Bryan) comes from an Irish backround. It is of Celtic origin and its meaning may be "hill" or "strong, noble, and high"[1]. D. Philips (company) Philips - A Dutch multinational electronics company. It produces washing machines, consumer electronics, integrated circuits and light bulbs. Together with Sony they set the Compact Disc standard, especially Green Book CD-ROM. , formerly vice president of U.S. marketing for FedEx, succeeded May as executive vice president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . Corporate Overview FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. and business services. With annual revenues of $32 billion, the company offers integrated business applications through operating companies operating company A business that engages in transactions with outsiders. 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 260,000 employees and contractors to remain "absolutely, positively" focused on safety, the highest ethical eth·i·cal adj. 1. Of, relating to, or dealing with ethics. 2. Being in accordance with the accepted principles of right and wrong that govern the conduct of a profession. and professional standards and the needs of their customers and communities. For more information, visit www.fedex.com. Additional information and operating data are contained in the company's annual report, Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , Form 10-Qs Form 10-Q See 10-Q. and third quarter FY2006 Statistical Book. These materials, as well as a Webcast of the earnings release conference call to be held at 8:30 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy on March 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , such as statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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, 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 the FedEx Kinko's business, the impact of 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.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE
TO GAAP FINANCIAL MEASURE
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 the impact of the one-time, non-cash
lease accounting charge from our full year guidance will allow more
accurate comparisons to prior periods of our expected operating
performance in fiscal 2006. 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 2006 Diluted
EPS Guidance
---------------------
Non-GAAP Measure $5.81 to $5.96
First Quarter Lease Accounting Charge, Net of
Variable Compensation and Income Taxes (0.15)
---------------------
GAAP Measure $5.66 to $5.81
=====================
FEDEX CORP. FINANCIAL HIGHLIGHTS
Third Quarter Fiscal 2006
(In millions, except earnings per share and FTEs)
(Unaudited)
Three Months Ended Nine Months Ended
February 28 February 28
--------------------- -----------------------
2006 2005 % 2006 2005 %
------- ------- ----- -------- -------- -----
Revenue:
FedEx Express segment $5,340 $4,915 9% $15,832 $14,365 10%
FedEx Ground segment 1,363 1,200 14% 3,889 3,447 13%
FedEx Freight segment 848 747 14% 2,672 2,374 13%
FedEx Kinko's segment 501 499 0% 1,546 1,513 2%
Other & eliminations (49) (22) NM (139) (51) NM
------- ------- -------- --------
Total Revenue 8,003 7,339 9% 23,800 21,648 10%
Operating Expenses:
Salaries and employee
benefits 3,162 3,026 4% 9,305 8,876 5%
Purchased
transportation 814 748 9% 2,397 2,176 10%
Rentals and landing
fees 577 585 (1%) 1,826 1,713 7%
Depreciation and
amortization 391 368 6% 1,147 1,091 5%
Fuel 774 570 36% 2,393 1,645 45%
Maintenance and
repairs 427 413 3% 1,340 1,263 6%
Airline Stabilization
Act charge -- -- NM -- 48 NM
Other 1,145 1,077 6% 3,305 3,105 6%
------- ------- -------- --------
Total Operating
Expenses 7,290 6,787 7% 21,713 19,917 9%
Operating Income:
FedEx Express segment 446 340 31% 1,207 983 23%
FedEx Ground segment 187 149 26% 498 431 16%
FedEx Freight segment 73 54 35% 343 259 32%
FedEx Kinko's segment 7 11 (36%) 39 59 (34%)
Other & eliminations -- (2) NM -- (1) NM
------- ------- -------- --------
Total Operating
Income 713 552 29% 2,087 1,731 21%
Other Income (Expense):
Interest, net (28) (34) (18%) (82) (111) (26%)
Other, net (2) (4) (50%) (13) (18) (28%)
------- ------- -------- --------
Total Other Income
(Expense) (30) (38) (21%) (95) (129) (26%)
Pretax Income 683 514 33% 1,992 1,602 24%
Provision for Income
Taxes 255 197 29% 754 601 25%
------- ------- -------- --------
Net Income $428 $317 35% $1,238 $1,001 24%
======= ======= ======== ========
Diluted Earnings Per
Share $1.38 $1.03 34% $4.01 $3.26 23%
======= ======= ======== ========
Weighted Average Common
and Common Equivalent
Shares 310 308 1% 309 307 1%
Capital Expenditures $530 $486 9% $1,856 $1,661 12%
Average Full-Time
Equivalents (FTEs in
thousands) 223 219 2% 221 215 3%
FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS
Third Quarter Fiscal 2006
(In millions)
Feb. 28, 2006
(Unaudited) May 31, 2005
-------------- -------------
ASSETS
------
Current Assets:
Cash and cash equivalents $ 1,121 $ 1,039
Other current assets 4,393 4,230
------------- -------------
Total Current Assets 5,514 5,269
Net Property and Equipment 10,423 9,643
Other Long-Term Assets 5,602 5,492
------------- -------------
$ 21,539 $ 20,404
============= =============
LIABILITIES AND STOCKHOLDERS' INVESTMENT
----------------------------------------
Current Liabilities:
Current portion of long-term debt $ 241 $ 369
Other current liabilities 4,270 4,365
------------- -------------
Total Current Liabilities 4,511 4,734
Long-Term Debt, Less Current Portion 2,209 2,427
Other Long-Term Liabilities 3,895 3,655
Total Common Stockholders' Investment 10,924 9,588
------------- -------------
$ 21,539 $ 20,404
============= =============
FEDEX CORP. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Third Quarter Fiscal 2006
(In millions)
(Unaudited)
Nine Months Ended
February 28
------------------
2006 2005
------- -------
Operating Activities:
Net income $1,238 $1,001
Noncash charges:
Depreciation and amortization 1,145 1,091
Other, net 243 29
Changes in operating assets and liabilities, net (407) (161)
------- -------
Net cash provided by operating activities 2,219 1,960
Investing Activities:
Capital expenditures (1,856) (1,661)
Business acquisition -- (122)
Proceeds from asset dispositions 44 10
------- -------
Net cash used in investing activities (1,812) (1,773)
Financing Activities:
Dividends paid (73) (63)
Other, net (252) (86)
------- -------
Net cash used in financing activities (325) (149)
------- -------
Net increase in cash and cash equivalents 82 38
Cash and cash equivalents at beginning of period 1,039 1,046
------- -------
Cash and cash equivalents at end of period $1,121 $1,084
======= =======
FEDEX EXPRESS SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
Third Quarter Fiscal 2006
(Dollars in millions)
(Unaudited)
Three Months Ended Nine Months Ended
February 28 February 28
----------------------- -------------------------
FINANCIAL HIGHLIGHTS 2006 2005 % 2006 2005 %
-------------------- ------- ------- ------- -------- -------- -------
Revenue $5,340 $4,915 9% $15,832 $14,365 10%
Operating Expenses:
Salaries and
employee
benefits 2,019 1,961 3% 5,949 5,723 4%
Purchased
transportation 238 216 10% 715 613 17%
Rentals and
landing fees 408 411 (1%) 1,300 1,193 9%
Depreciation and
amortization 203 199 2% 599 598 0%
Fuel 666 498 34% 2,054 1,433 43%
Maintenance and
repairs 320 307 4% 1,020 954 7%
Airline
Stabilization
Act charge -- -- NM -- 48 NM
Intercompany
charges 386 382 1% 1,127 1,118 1%
Other 654 601 9% 1,861 1,702 9%
------- ------- -------- --------
Total
Operating
Expenses 4,894 4,575 7% 14,625 13,382 9%
------- ------- -------- --------
Operating Income $446 $340 31% $1,207 $983 23%
======= ======= ======== ========
Operating Margin 8.4% 6.9% 1.5pts 7.6% 6.8% 0.8pts
OPERATING STATISTICS
--------------------
Operating Weekdays 62 62 -- 190 190 --
AVG DAILY VOLUME /
POUNDS
--------------------
Average Daily
Package Volume
(000s):
U.S. Overnight
Box 1,225 1,217 1% 1,205 1,182 2%
U.S. Overnight
Envelope 711 681 4% 708 668 6%
U.S. Deferred 965 1,086 (11%) 916 961 (5%)
------- ------- -------- --------
Total U.S.
Domestic
Package 2,901 2,984 (3%) 2,829 2,811 1%
International
Priority 478 435 10% 467 432 8%
------- ------- -------- --------
Total Average
Daily Packages 3,379 3,419 (1%) 3,296 3,243 2%
======= ======= ======== ========
Average Daily
Freight Pounds
(000s):
U.S. 9,619 9,331 3% 9,343 8,842 6%
International 2,177 1,868 17% 2,165 1,867 16%
------- ------- -------- --------
Total Avg Daily
Freight Pounds 11,796 11,199 5% 11,508 10,709 7%
======= ======= ======== ========
YIELD
--------------------
Revenue Per Package:
U.S. Overnight
Box $21.03 $19.79 6% $20.80 $19.66 6%
U.S. Overnight
Envelope 11.01 10.51 5% 10.81 10.35 4%
U.S. Deferred 12.54 11.26 11% 12.29 11.44 7%
------- ------- -------- --------
Total U.S.
Domestic
Package 15.75 14.57 8% 15.55 14.63 6%
International
Priority 57.00 56.14 2% 57.24 54.73 5%
------- ------- -------- --------
Composite
Package Yield $21.59 $19.86 9% $21.46 $19.97 7%
======= ======= ======== ========
Revenue Per Freight
Pound:
U.S. $0.96 $0.82 17% $0.93 $0.81 15%
International 0.80 0.81 (1%) 0.80 0.78 3%
------- ------- -------- --------
Composite
Freight Yield $0.93 $0.82 13% $0.90 $0.81 11%
======= ======= ======== ========
Average Full-Time
Equivalents (000s) 126 126 -- 125 123 2%
FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
Third Quarter Fiscal 2006
(Dollars in millions)
(Unaudited)
Three Months Ended Nine Months Ended
February 28 February 28
----------------------- -----------------------
2006 2005 % 2006 2005 %
------- ------- ------- ------- ------- -------
FINANCIAL HIGHLIGHTS
--------------------
Revenue $1,363 $1,200 14% $3,889 $3,447 13%
Operating Expenses:
Salaries and
employee benefits 237 214 11% 688 624 10%
Purchased
transportation 517 464 11% 1,489 1,330 12%
Rentals 35 31 13% 102 89 15%
Depreciation and
amortization 58 47 23% 161 130 24%
Fuel 21 11 91% 66 31 113%
Maintenance and
repairs 29 28 4% 86 80 8%
Intercompany
charges 135 124 9% 384 358 7%
Other 144 132 9% 415 374 11%
------- ------- ------- -------
Total Operating
Expenses 1,176 1,051 12% 3,391 3,016 12%
------- ------- ------- -------
Operating Income $187 $149 26% $498 $431 16%
======= ======= ======= =======
Operating Margin 13.7% 12.4% 1.3pts 12.8% 12.5% 0.3pts
OPERATING STATISTICS
--------------------
Operating Weekdays 62 63 (2%) 190 191 (1%)
Average Daily Package
Volume(1) (000s) 2,944 2,660 11% 2,788 2,609 7%
Yield (Revenue Per
Package)(1) $7.10 $6.79 5% $6.97 $6.60 6%
(1) Package statistics exclude FedEx SmartPost.
FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
Third Quarter Fiscal 2006
(Dollars in millions)
(Unaudited)
Three Months Ended Nine Months Ended
February 28 February 28
----------------------- -----------------------
2006 2005 % 2006 2005 %
------- ------- ------- ------- ------- -------
FINANCIAL HIGHLIGHTS
--------------------
Revenue $848 $747 14% $2,672 $2,374 13%
Operating Expenses:
Salaries and
employee benefits 449 404 11% 1,330 1,220 9%
Purchased
transportation 68 71 (4%) 221 243 (9%)
Rentals and landing
fees 23 25 (8%) 72 76 (5%)
Depreciation and
amortization 29 25 16% 88 75 17%
Fuel 87 61 43% 273 180 52%
Maintenance and
repairs 30 33 (9%) 88 95 (7%)
Intercompany
charges 9 6 50% 27 19 42%
Other 80 68 18% 230 207 11%
------- ------- ------- -------
Total Operating
Expenses 775 693 12% 2,329 2,115 10%
------- ------- ------- -------
Operating Income $73 $54 35% $343 $259 32%
======= ======= ======= =======
Operating Margin 8.6% 7.2% 1.4pts 12.8% 10.9% 1.9pts
OPERATING STATISTICS
--------------------
LTL Operating Weekdays 62 62 -- 189 189 --
LTL Shipments Per Day
(000s) 64 60 7% 66 63 5%
Weight Per LTL
Shipment (lbs) 1,141 1,129 1% 1,145 1,129 1%
LTL Revenue/CWT $16.74 $15.58 7% $16.70 $15.36 9%
FEDEX KINKO'S SEGMENT FINANCIAL HIGHLIGHTS
Third Quarter Fiscal 2006
(Dollars in millions)
(Unaudited)
Three Months Ended Nine Months Ended
February 28 February 28
------------------------ ------------------------
2006 2005 % 2006 2005 %
------- ------- -------- ------- ------- --------
FINANCIAL HIGHLIGHTS
--------------------
Revenue $501 $499 0% $1,546 $1,513 2%
Operating Expenses:
Salaries and
employee benefits 185 185 -- 561 553 1%
Rentals 94 103 (9%) 295 312 (5%)
Depreciation and
amortization 35 36 (3%) 108 100 8%
Maintenance and
repairs 18 17 6% 55 51 8%
Intercompany
charges 8 (1) NM 18 5 260%
Other operating
expenses:
Supplies,
including
paper and
toner 67 70 (4%) 204 205 (0%)
Other 87 78 12% 266 228 17%
------- ------- ------- -------
Total
Operating
Expenses 494 488 1% 1,507 1,454 4%
------- ------- ------- -------
Operating Income $7 $11 (36%) $39 $59 (34%)
======= ======= ======= =======
Operating Margin 1.4% 2.2% (0.8pts) 2.5% 3.9% (1.4pts)
Note: Certain prior period amounts have been reclassified to conform
to the current period's presentation.
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