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 : March 11, 1994
(Date of earliest event reported)
FEDERAL EXPRESS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
(State of Incorporation)
1-7806 71-0427007
(Commission File Number) (IRS Employer
Identification No.)
2005 Corporate Avenue, Memphis, Tennessee 38132
(Address of principal executive offices)
Registrant's Telephone Number, including area code:
(901) 369-3600
ITEM 5. OTHER EVENTS.
On March 11, 1994, Federal Express Corporation (the
"Registrant") announced its financial results for the
fiscal quarter ended February 28, 1994 by the press
release attached as Exhibit 20.1 to this report and
incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
20.1 Registrant's press release, dated
March 11, 1994.
Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
FEDERAL EXPRESS CORPORATION
By: /s/ GRAHAM R. SMITH
---------------------------
Graham R. Smith
Vice President & Controller
Dated: March 14, 1994
EXHIBIT INDEX
EXHIBIT DESCRIPTION OF EXHIBIT
20.1 Registrant's press release, dated
March 11, 1994.
EXHIBIT 20.1
(Federal Express Letterhead)
FEDERAL EXPRESS CORPORATION
THIRD QUARTER FISCAL 1994
FINANCIAL RESULTS
FOR IMMEDIATE RELEASE
MEMPHIS, March 11, 1994 ... Federal Express Corporation today reported net
income for the quarter ended February 28, of $31.2 million or $0.55 per
share, compared to net income of $8.5 million or $0.15 in last year's third
quarter.
Revenues for the quarter were $2,077.4 million , up 7% year-over-year
from $1,939.8 million. Operating income was $85.3 million, compared to
last year's $58.3 million and pretax income was $57.7 million, compared
to $16.9 million last year. Non-operating income included a pre-tax gain
of $10.9 million from the sale of several 727-100 aircraft and engines
during the quarter.
The company also reported an international operating loss for the quarter
of $18.3 million, on international revenues of $539.3 million, compared to
an operating loss of $61.3 million on revenues of $513.7 million in last
year's third quarter.
U.S. domestic operating profit was $103.6 million, compared to $119.6
million last year. U.S. domestic revenues increased 8% to $1,538.1
million, from $1,426.1 million during the same period a year ago.
Chairman and Chief Executive Officer Frederick W. Smith commented, "The
reduction of our international operating loss in this quarter was again the
primary factor in our year-over-year earnings improvement. The
repositioning of many of our international flights on March 1, 1993,
reduced the capacity available for non-time-definite air freight and
improved our delivery times for express packages. This schedule change has
provided lower, year-over-year, international expenses for the last four
quarters. Also, we had continued strong volume growth in our International
Priority service, which was up 15% over last year's third quarter.
International Priority package yields remain stable, contributing to high
incremental profit margins on our largely fixed-cost international air
system."
With respect to the company's U.S. domestic operations, Chief Financial
Officer Alan B. Graf, Jr. said, "During the quarter, we suffered the combined
effects of lower than anticipated package volume during the last week of
December and higher operating costs due in part to the Los Angeles
earthquake in January and several severe snowstorms in the eastern U.S.
Consequently, our U.S. domestic operating income fell below last year's
level."
"However, our U.S. operations did achieve productivity increases, improved
healthcare claims experience, double-digit package volume growth and
benefited from lower fuel prices," Graf continued. "In the absence of
pricing flexibility in today's U.S. express market, we will continue to
aggressively pursue cost reductions through technological and operational
improvements."
###
Contact: Tom Martin 901-395-3490 or Shirlee Finley 901-395-3463
FEDERAL EXPRESS CORPORATION FINANCIAL HIGHLIGHTS
THIRD QUARTER FISCAL 1994
(In thousands, except earnings per
share and operating data)
Three Months Nine Months
Ended Ended
February 28 February 28
---------------------- ---------------------
FINANCIAL RESULTS 1994 1993 1994 1993
---- ---- ---- ----
Revenues $2,077,414 $1,939,781 $6,214,664 $5,769,391
Operating Income 85,317 58,321 336,942 240,700
Pretax Income 57,717 16,875 229,091 107,610
Provision for Income Taxes 26,550 8,387 105,382 53,573
Income Before Cumulative
Effect of Change in
Accounting Principle 31,167 8,488 123,709 54,037
Cumulative Effect of Change
in Accounting for
Postretirement Benefits,
net of tax -- -- -- (55,943)
---------- ---------- --------- ----------
Net Income (Loss) $31,167 $8,488 $123,709 ($1,906)
======= ====== ======== ========
Earnings (Loss) Per Share:
Before Cumulative Effect
of Change in Accounting
Principle $0.55 $0.15 $2.22 $0.99
Cumulative Effect of Change in
Accounting Principle -- -- -- (1.03)
---------- ---------- --------- ----------
Earnings (Loss) Per Share $0.55 $0.15 $2.22 ($0.04)
========== ========== ========= ==========
Common and Common Equivalent
Shares 56,445 55,117 55,827 54,562
OPERATING DATA
Operating Weekdays 64 62 192 190
U.S. Domestic Packages (000) 117,373 102,920 333,849 296,524
International Packages (000) 8,318 6,997 24,577 21,320
---------- ---------- --------- ----------
Total Package Volume (000) 125,691 109,917 358,426 317,844
Avg. Revenue Per U.S. Domestic
Package $12.79 $13.28 $13.25 $13.52
Avg. Revenue Per International
Package $39.14 $38.67 $38.56 $38.03
Average Revenue Per Package $14.53 $14.90 $14.99 $15.16
Average Revenue Per Pound $2.45 $2.56 $2.52 $2.61
Average Pounds Per Package 5.9 5.8 6.0 5.8
International Air Freight Lbs.
(millions) 104.9 128.4 343.8 407.7
Average Revenue Per
Freight Pound $1.04 $1.04 $1.07 $1.10
Note: As previously reported, fiscal year 1993 first, second and third
quarter results were restated in the fourth quarter of fiscal 1993
for the adoption of an accounting standard (FAS 106) that requires
current period accrual of expense related to future postretirement
health care benefits. The accounting change added $3.8 million to
the third quarter operating expense reported last year ($0.04 per
share, after tax).
Final Monthly Volume
February 1994
For Immediate Release
- ---------------------
Memphis, March 11 --- Federal Express Corporation announced today that
average daily volume of express packages and documents for February 1994
increased approximately 14% compared to February 1993. Details are shown
in the table below.
FISCAL YEAR-TO-DATE
FEBRUARY (9 MONTHS)
1994 1993 FY 1994 FY 1993
---- ---- ------- -------
Total Package Volume (000) 39,489 34,502 358,426 317,844
Operating Weekdays 20 20 192 190
Average Daily Package Volume:
Priority Overnight 898,850 809,200 855,594 791,426
Standard Overnight 469,200 401,550 432,817 384,400
Economy Two-Day 468,950 395,700 447,990 382,658
U.S. Express Freight (OFS/F-2) 2,500 1,900 2,396 2,168
International Priority 134,950 116,750 128,005 112,211
--------- --------- --------- ---------
TOTAL 1,974,450 1,725,100 1,866,802 1,672,863
--------- --------- --------- ---------
Percent Change in Daily
Package Volume 14.5% 11.6%
International Air Freight
(millions of pounds) 35.3 41.0 343.8 407.7
Contact: Tom Martin 901/395-3490 or
Shirley Finley 901/395-3463
