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FEDERAL EXPRESS CORPORATION REPORTS THIRD QUARTER 1993 FINANCIAL RESULTS

 MEMPHIS, March 12 /PRNewswire/ -- Federal Express Corporation (NYSE: FDX) today announced that net income for the quarter ended February 28 was $10.5 million compared to a loss of $193.4 million in the same period last year. Earnings per share for the quarter increased to $0.19 from a loss of $3.58 a year ago. The company noted that last year's third quarter results included a $254.0 million charge to operating expenses (representing a net income impact of $168.5 million or $3.12 per share) associated with the restructuring of certain European operations and discontinuing intra-region and intra-country service, on May 4, 1992.
 Federal Express' third quarter revenues increased to $1,939.8 million compared to $1,889.5 million in the comparable period last year. Operating income for the third quarter increased to $62.1 million from a loss of $255.8 million in the last year's third quarter. Pretax income increased to $20.7 million from a loss of $298.0 million.
 The company also reported an international operating loss for the third quarter of $60.9 million on international segment revenues of $513.7 million compared with an operating loss of $392.0 million on revenues of $594.7 million in last year's third quarter.
 Comparisons to last year's operating results excluding the restructuring charge are summarized in the table below:
 FEDERAL EXPRESS CORPORATION
 (In millions, except per share data)
 Qtr3 Qtr3 FY1992
 FY1993 (excluding
 restructuring charge)
 Revenue $1,939.8 $1,889.5
 Operating income (loss) 62.1 (1.8)
 Pretax income (loss) 20.7 (44.0)
 Net income (loss) 10.5 (24.9)
 Earnings (loss) per share $0.19 ($0.46)
 Operating income (loss)
 by business segment:
 U.S. domestic $123.0 $136.2
 International (60.9) ($138.0)
 Commenting on the quarter's results, Chairman and Chief Executive Officer Frederick W. Smith said, "One year after our announcement of plans to restructure our European operations, we are reporting a $77.1 million, year-over-year, reduction in our international loss for the third quarter without considering last year's one-time $254 million restructuring charge. We continue efforts to reduce our exposure to the low-value-added end of the inter-continental airfrieght market."
 On Jan. 15, 1993, the company announced a rescheduling of some international flights, replacing some wide-bodied aircraft in international scheduled service with narrow-bodied aircraft. The schedule change, effective on March 1, 1993, improved cut-off times in several European markets for outbound traffic, reduced expenses and also reduced available capacity for non-express traffic.
 "Since 1990," Smith continued, "the softness in most major international economies has steadily eroded the cushion that the commodity aircargo market was supposed to provide our inter-continental express network. Consequently, with our restructuring in Europe last year and this schedule change in March, our international operations are increasingly focusing on just the inter-continental movement of time- definite packages and freight."
 With respect to the U.S. domestic operations, Chief Financial Officer Alan B. Graf, Jr. said, "Revenue per package, or yield, declined about 6 percent, year-over-year, for the quarter. This shows improvement over the 10 percent year-over-year decline we had during the first six months of this fiscal year. However, we did not gain full advantage of this in the third quarter as our per-package costs declined by only about 4 percent year-over-year. We have every intention of maintaining our concentration on controlling expenses. The continued success of our U.S. operations still depends on our ability to keep driving down our average unit costs."
 FEDERAL EXPRESS CORPORATION
 Financial Highlights
 (In thousands, except earnings per share and operating data)
 Periods Ended Three Months Nine Months
 2/28/93 2/29/92 2/28/93 2/29/92
 Revenues $1,939,781 $1,889,536 $5,769,391 $5,658,727
 Operating income (loss) 62,119 (255,826) 252,094 (86,874)
 Pretax income (loss) 20,673 (297,990) 119,004 (213,841)
 Provision (benefit)
 for income taxes 10,146 (104,632) 58,312 (64,240)
 Net income (loss) 10,527 (193,358) 60,692 (149,601)
 Earnings (loss)
 per share $0.19 ($3.58) $1.11 ($2.78)
 Common and common
 equivalent shares 55,117 53,942 54,562 53,814
 Package Operating Data
 U.S. domestic
 packages (000) 103,719 88,601 298,490 251,058
 International
 packages (000) 7,056 7,157 21,379 20,440
 Total package
 volume (000) 110,775 95,758 319,869 271,498
 Avg. revenue per
 U.S. domestic pkg. $13.11 $14.00 $13.34 $14.62
 Avg. revenue per
 international pkg. $38.70 $38.70 $38.03 $38.08
 Average revenue
 per package $14.74 $15.85 $14.99 $14.39
 Average revenue
 per pound $2.61 $2.94 $2.66 $2.98
 Average pounds
 per package 5.6 5.4 5.6 5.5
 Operating weekdays 62 63 190 190
 Airfreight Data
 (million pounds)
 U.S. domestic
 airfreight 25.8 27.1 79.9 74.5
 International
 airfreight 128.4 133.0 407.7 434.4
 Total volume 154.2 160.1 487.6 508.9
 Average revenue
 per pound $1.02 $1.13 $1.06 $1.18
 -0- 3/12/93
 /CONTACT: Tom Martin, 901-395-3490, or Brandon Davis, 901-395-3755, both of Federal Express/
 (FDX)


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

TM-LD -- NY068 -- 5716 03/12/93 19:13 EST
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Date:Mar 12, 1993
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