Exhibit 99.1

FOR IMMEDIATE RELEASE

FedEx Corp. Reports Fourth Quarter Earnings

Diluted Earnings Per Share Up 7% Excluding Charges

MEMPHIS, Tenn., June 19, 2013 … FedEx Corp. (NYSE: FDX) today reported earnings of $2.13 per diluted share for the fourth quarter ended May 31. This excludes a $0.98 per diluted share business realignment program charge and a previously announced $0.20 per diluted share noncash aircraft impairment charge at FedEx Express. Including these charges, fourth quarter earnings were $0.95 per diluted share.

Last year’s fourth quarter earnings were $1.99 per diluted share, excluding a $0.26 per diluted share noncash aircraft impairment charge at FedEx Express. Including last year’s charge, earnings were $1.73 per diluted share.

“FedEx Ground posted another strong year and FedEx Freight margins continued to improve,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “These positive developments did not fully offset tepid economic growth and customer preference for less costly international shipping services. FedEx Express results improved in the fourth quarter, and while near-term challenges remain, we are confident we are positioning FedEx for profitable, long-term growth.”

 

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Fourth Quarter Results

FedEx Corp. reported the following consolidated results for the fourth quarter:

 

		Fiscal 2013				Fiscal 2012
		Adjusted (non-GAAP)		As Reported (GAAP)		Adjusted (non-GAAP)		As Reported (GAAP)
Revenue		$11.4 billion		$11.4 billion		$11.0 billion		$11.0 billion
Operating Income		$1.10 billion		$502 million		$990 million		$856 million
Operating Margin		9.6%		4.4%		9.0%		7.8%
Net Income		$679 million		$303 million		$634 million		$550 million
Diluted EPS		$2.13		$0.95		$1.99		$1.73

As announced on June 3, during the quarter FedEx Express permanently retired 10 aircraft and related engines. As a consequence, a noncash impairment charge of $100 million ($63 million, net of tax, or $0.20 per diluted share) was recorded in the fourth quarter.

Excluding business realignment program costs and aircraft impairment charges from this year and aircraft impairment charges from last year, “adjusted” operating results improved due to continued strong FedEx Ground performance and better FedEx Express performance.

Full Year Results

FedEx Corp. reported the following consolidated results for the full year:

 

		Fiscal 2013				Fiscal 2012
		Adjusted (non-GAAP)		As Reported (GAAP)		Adjusted (non-GAAP)		As Reported (GAAP)
Revenue		$44.3 billion		$44.3 billion		$42.7 billion		$42.7 billion
Operating Income		$3.21 billion		$2.55 billion		$3.28 billion		$3.19 billion
Operating Margin		7.3%		5.8%		7.7%		7.5%
Net Income		$1.98 billion		$1.56 billion		$2.09 billion		$2.03 billion
Diluted EPS		$6.23		$4.91		$6.59		$6.41

Capital spending for fiscal 2013 was $3.4 billion, down from $4.0 billion in fiscal 2012.

 

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Business Realignment Program Update

In October, the company announced profit improvement programs, which include a voluntary employee separation program. The program was completed during the fourth quarter, and approximately 3,600 employees will be voluntarily leaving the company in phases to ensure a smooth transition. Approximately 40% of the employees vacated their positions on May 31, 2013 in the first phase. Approximately 25% of the employees will vacate their positions in the final phase at the end of fiscal 2014.

The company incurred costs of $496 million ($313 million, net of tax, or $0.98 per diluted share) during the fourth quarter and $560 million ($353 million, net of tax, or $1.11 per diluted share) during fiscal 2013, associated with the business realignment activities. The cost of the voluntary employee separation program is included in the “Business realignment, impairment and other charges” line of the company’s statements of income. Business realignment program costs at FedEx Services have been allocated to the operating segments through the “Intercompany charges” line of each segment’s statement of income.

Outlook

FedEx is revising its earnings guidance practices to focus on full fiscal year projections with quarterly updates. For fiscal 2014, the company projects earnings per share growth of 7% to 13% from fiscal 2013 adjusted results. This assumes the current market outlook for fuel prices, U.S. GDP growth of 2.3% and world GDP growth of 2.7%. Capital spending for fiscal 2014 is expected to be approximately $4 billion.

“We remain focused on improving margins and returns in all of our businesses. The pace of that improvement is expected to be moderate in fiscal 2014 and then accelerate in fiscal 2015,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “Our profit improvement program is progressing, but we continue to see the effects of customers selecting lower-rate international services. FedEx Express will further decrease capacity between Asia and the United States in July.”

 

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FedEx Express Segment

For the fourth quarter, the FedEx Express segment reported:

 

•

Revenue of $6.98 billion, up 3% from last year’s $6.80 billion

 

•

Adjusted operating income of $460 million, up 11% from $415 million a year ago. Including charges, operating income of $0, down from $281 million last year.

 

•

Adjusted operating margin of 6.6%, up from 6.1% the previous year. Including charges, operating margin of 0.0%, down from 4.1% last year.

Adjusted operating income and margin improved despite the demand shift toward lower yielding international services, as the net impact of the fuel surcharge timing lag, capacity reductions and other cost reduction activities benefited the quarter’s results. Direct and intercompany costs associated with the business realignment programs and the aircraft impairment charge impacted operating income and margin by $460 million and 6.6 percentage points, respectively. Last year’s results included a $134 million aircraft impairment charge.

Revenue increased due to this year’s business acquisitions and growth at FedEx Trade Networks. U.S. domestic average daily package volume increased 2% and U.S. domestic revenue per package increased 1%, as higher rate per pound and weight per package were offset by lower fuel surcharges. FedEx International Economy volume grew 11%, while FedEx International Priority volume decreased 2% during the quarter. International export revenue per package fell 2% due primarily to lower rates.

FedEx Express is pleased to have been selected as the sole awardee of the recent U.S. Postal Service air cargo solicitation, representing the majority of the USPS’s air line-haul traffic. This new seven year agreement, valued at approximately $10.5 billion, begins on October 1, 2013. The agreement provides reduced rates for the USPS versus the prior FedEx Express agreement and offers the opportunity for incremental revenue.

 

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FedEx Ground Segment

For the fourth quarter, the FedEx Ground segment reported:

 

•

Revenue of $2.78 billion, up 12% from last year’s $2.48 billion

 

•

Adjusted operating income of $557 million, up 13% from $494 million a year ago. Including charges, operating income of $464 million, down 6% from last year.

 

•

Adjusted operating margin of 20.1%, up from 20.0% the previous year. Including charges, operating margin of 16.7%.

Adjusted operating income increased due to higher volume and revenue per package. Intercompany costs associated with the business realignment programs impacted operating income and margin by $93 million and 3.4 percentage points, respectively.

FedEx Ground average daily volume grew 10% in the fourth quarter driven by market share gains and growth in e-commerce. Revenue per package increased 2%. FedEx SmartPost average daily volume increased 25% primarily due to growth in e-commerce. FedEx SmartPost net revenue per package was down 7% due to higher postage rates.

FedEx Freight Segment

For the fourth quarter, the FedEx Freight segment reported:

 

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Revenue of $1.39 billion, down 1% from last year’s $1.40 billion

 

•

Adjusted operating income of $81 million, unchanged from a year ago. Including charges, operating income of $38 million, down 53% from last year.

 

•

Adjusted operating margin of 5.8%, unchanged from the previous year. Including charges, operating margin of 2.7%.

Adjusted operating results benefited from higher weight per shipment, increased yield and favorable operational efficiencies, partially offset by lower shipment volumes. Direct and intercompany costs associated with the business realignment programs impacted operating income and margin by $43 million and 3.1 percentage points, respectively.

Average daily less-than-truckload (LTL) shipments decreased 3% due in part to challenges encountered by some customers while migrating FedEx Freight

 

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functionality to the FedEx enterprise automation platform. LTL weight per shipment increased 2% driven by FedEx Freight Priority, and LTL yield increased 1% due to improvement in FedEx Freight Economy. LTL yield was negatively impacted by lower fuel surcharges.

Effective July 1, 2013, FedEx Freight will increase U.S. and certain other shipping rates by an average of 4.5%.

Corporate Overview

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $44 billion, the company offers integrated business applications through operating companies 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 300,000 team members to remain “absolutely, positively” focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit news.fedex.com.

Additional information and operating data are contained in the company’s annual report, Form 10-K, Form 10-Qs and fourth quarter fiscal 2013 Statistical Book. These materials, as well as a webcast of the earnings release conference call to be held at 8:30 a.m. EDT on June 19 are available on the company’s website at investors.fedex.com. 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, such as statements relating to 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 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, legal challenges or changes related to FedEx Ground’s owner-operators, 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 acquired businesses, changes in fuel prices and currency exchange rates, our ability to match

 

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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.

Media Contact: Jess Bunn 901-818-7463

Investor Contact: Mickey Foster 901-818-7468

Home Page: fedex.com

 

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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

TO GAAP FINANCIAL MEASURES

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 charges associated with the business realignment program and a noncash aircraft impairment charge at FedEx Express from current results and the reversal of a reserve associated with a legal matter and a noncash aircraft impairment charge at FedEx Express from our prior period results will allow for more accurate comparisons of our operating performance. Where applicable, the impacts of these events are shown net of incentive compensation impacts. As required by SEC rules, the tables below present a reconciliation of our presented non-GAAP measures to the most directly comparable GAAP measures.

Fourth Quarter Fiscal 2013

		FedEx Corporation
Dollars in millions, except EPS		Operating								Net				Diluted Earnings Per
		Income				Margin				Income				Share
Non-GAAP Measure		$	1,098				9.6	%		$	679			$	2.13
Business Realignment Program			(496	)			(4.3	%)			(313	)			(0.98	)
Aircraft Impairment			(100	)			(0.9	%)			(63	)			(0.20	)
GAAP Measure		$	502				4.4	%		$	303			$	0.95

 

Dollars in millions, except EPS		FedEx  Express Operating								FedEx Ground Operating								FedEx Freight Operating
		Income				Margin				Income				Margin				Income				Margin
Non-GAAP Measure		$	460				6.6	%		$	557				20.1	%		$	81				5.8	%
Business Realignment Program			(360	)			(5.2	%)			(93	)			(3.4	%)			(43	)			(3.1	%)
Aircraft Impairment			(100	)			(1.4	%)			—				—				—				—
GAAP Measure		$	0				0.0	%		$	464				16.7	%		$	38				2.7	%

 

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Fourth Quarter Fiscal 2012

 

		FedEx Corporation																FedEx  Express Segment
Dollars in millions, except EPS		Operating								Net				Diluted Earning Per				Operating
		Income				Margin				Income				Share				Income				Margin
Non-GAAP Measure		$	990				9.0	%		$	634			$	1.99			$	415				6.1	%
Aircraft Impairment			(134	)			(1.2	%)			(84	)			(0.26	)			(134	)			(2.0	%)
GAAP Measure		$	856				7.8	%		$	550			$	1.73			$	281				4.1	%

Full Year Fiscal 2013

 

		FedEx Corporation
Dollars in millions, except EPS		Operating								Net				Diluted Earnings Per
		Income				Margin				Income				Share1
Non-GAAP Measure		$	3,211				7.3	%		$	1,977			$	6.23
Business Realignment Program			(560	)			(1.3	%)			(353	)			(1.11	)
Aircraft Impairment			(100	)			(0.2	%)			(63	)			(0.20	)
GAAP Measure		$	2,551				5.8	%		$	1,561			$	4.91
1– Does not sum to total due to rounding.

Full Year Fiscal 2012

 

		FedEx Corporation
Dollars in millions, except EPS		Operating								Net				Diluted Earnings Per
		Income				Margin				Income				Share
Non-GAAP Measure		$	3,277				7.7	%		$	2,089			$	6.59
Aircraft Impairment			(134	)			(0.3	%)			(84	)			(0.26	)
ATA Legal Reserve, Net			43				0.1	%			27				0.08
GAAP Measure		$	3,186				7.5	%		$	2,032			$	6.41

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FEDEX CORP. FINANCIAL HIGHLIGHTS

Fourth Quarter Fiscal 2013

(In millions, except earnings per share)

(Unaudited)

 

		Three Months Ended May 31												Twelve Months Ended May 31
		2013				2012				%				2013				2012				%
Revenue:
FedEx Express segment		$	6,977			$	6,797				3	%		$	27,171			$	26,515				2	%
FedEx Ground segment			2,776				2,476				12	%			10,578				9,573				10	%
FedEx Freight segment			1,388				1,395				(1	%)			5,401				5,282				2	%
FedEx Services segment			406				432				(6	%)			1,580				1,671				(5	%)
Other & eliminations			(112	)			(92	)			(22	%)			(443	)			(361	)			(23	%)
Total Revenue			11,435				11,008				4	%			44,287				42,680				4	%
Operating Expenses:
Salaries and employee benefits			4,192				4,092				2	%			16,570				16,099				3	%
Purchased transportation			1,861				1,622				15	%			7,272				6,335				15	%
Rentals and landing fees			633				616				3	%			2,521				2,487				1	%
Depreciation and amortization			622				543				15	%			2,386				2,113				13	%
Fuel			1,158				1,279				(9	%)			4,746				4,956				(4	%)
Maintenance and repairs			432				462				(6	%)			1,909				1,980				(4	%)
Business realignment, impairment and other charges			596				134				NM				660				134				NM
Other			1,439				1,404				2	%			5,672				5,390				5	%
Total Operating Expenses			10,933				10,152				8	%			41,736				39,494				6	%
Operating Income:
FedEx Express segment			—				281				(100	%)			555				1,260				(56	%)
FedEx Ground segment			464				494				(6	%)			1,788				1,764				1	%
FedEx Freight segment			38				81				(53	%)			208				162				28	%
Total Operating Income			502				856				(41	%)			2,551				3,186				(20	%)
Other Income (Expense):
Interest, net			(24	)			(9	)			NM				(61	)			(39	)			56	%
Other, net			(6	)			1				NM				(35	)			(6	)			NM
Total Other Income (Expense)			(30	)			(8	)			NM				(96	)			(45	)			NM
Pretax Income			472				848				(44	%)			2,455				3,141				(22	%)
Provision for Income Taxes			169				298				(43	%)			894				1,109				(19	%)
Net Income		$	303			$	550				(45	%)		$	1,561			$	2,032				(23	%)
Diluted Earnings Per Share		$	0.95			$	1.73				(45	%)		$	4.91			$	6.41				(23	%)
Weighted Average Diluted Common and Common Equivalent Shares			319				317				1	%			317				317				—
Capital Expenditures		$	945			$	1,062				(11	%)		$	3,375			$	4,007				(16	%)

 

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FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS

Fourth Quarter Fiscal 2013

(In millions)

(Current period is unaudited)

 

		May 31, 2013				May 31, 2012
ASSETS
Current Assets
Cash and cash equivalents		$	4,917			$	2,843
Receivables, less allowances			5,044				4,704
Spare parts, supplies and fuel, less allowances			457				440
Deferred income taxes			533				533
Prepaid expenses and other			323				536
Total current assets			11,274				9,056
Property and Equipment, at Cost			38,109				36,164
Less accumulated depreciation and amortization			19,625				18,916
Net property and equipment			18,484				17,248
Other Long-Term Assets
Goodwill			2,755				2,387
Other assets			1,054				1,212
Total other long-term assets			3,809				3,599
		$	33,567			$	29,903
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current Liabilities
Current portion of long-term debt		$	251			$	417
Accrued salaries and employee benefits			1,688				1,635
Accounts payable			1,879				1,613
Accrued expenses			1,932				1,709
Total current liabilities			5,750				5,374
Long-Term Debt, Less Current Portion			2,739				1,250
Other Long-Term Liabilities
Deferred income taxes			1,652				836
Pension, postretirement healthcare and other benefit obligations			3,916				5,582
Self-insurance accruals			987				963
Deferred lease obligations			778				784
Deferred gains, principally related to aircraft transactions			227				251
Other liabilities			120				136
Total other long-term liabilities			7,680				8,552
Commitments and Contingencies
Common Stockholders’ Investment
Common stock, $0.10 par value, 800 million shares authorized			32				32
Additional paid-in capital			2,668				2,595
Retained earnings			18,519				17,134
Accumulated other comprehensive loss			(3,820	)			(4,953	)
Treasury stock, at cost			(1	)			(81	)
Total common stockholders’ investment			17,398				14,727
		$	33,567			$	29,903

 

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FEDEX CORP. CONDENSED CONSOLIDATED

STATEMENTS OF CASH FLOWS

Fourth Quarter Fiscal 2013

(In millions)

(Current period is unaudited)

 

		Year Ended May 31
		2013				2012
Operating Activities:
Net income		$	1,561			$	2,032
Noncash charges:
Depreciation and amortization			2,386				2,113
Other, net			1,276				1,525
Changes in operating assets and liabilities, net			(535	)			(835	)
Cash provided by operating activities			4,688				4,835
Investing Activities:
Capital expenditures			(3,375	)			(4,007	)
Business acquisitions, net of cash acquired			(483	)			(116	)
Proceeds from asset dispositions and other			55				74
Cash used in investing activities			(3,803	)			(4,049	)
Financing Activities:
Principal payments on debt			(417	)			(29	)
Proceeds from debt issuances			1,739				—
Dividends paid			(177	)			(164	)
Purchase of treasury stock			(246	)			(197	)
Other, net			285				146
Cash provided by (used in) financing activities			1,184				(244	)
Effect of exchange rate changes on cash			5				(27	)
Net increase in cash and cash equivalents			2,074				515
Cash and cash equivalents at beginning of period			2,843				2,328
Cash and cash equivalents at end of period		$	4,917			$	2,843

 

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FEDEX EXPRESS SEGMENT FINANCIAL HIGHLIGHTS

Fourth Quarter Fiscal 2013

(Dollars in millions)

(Unaudited)

 

		Three Months Ended												Twelve Months Ended
		May 31												May 31
		2013				2012				%				2013				2012				%
Revenues:
Package Revenue:
U.S. Overnight Box		$	1,691			$	1,664				2	%		$	6,513			$	6,546				(1	%)
U.S. Overnight Envelope			453				449				1	%			1,705				1,747				(2	%)
Total U.S. Overnight			2,144				2,113				1	%			8,218				8,293				(1	%)
U.S. Deferred			774				747				4	%			3,020				3,001				1	%
Total U.S. Package Revenue			2,918				2,860				2	%			11,238				11,294				—
International Priority			1,680				1,756				(4	%)			6,586				6,849				(4	%)
International Economy			554				504				10	%			2,046				1,859				10	%
Total International Export Package			2,234				2,260				(1	%)			8,632				8,708				(1	%)
International Domestic1			363				219				66	%			1,398				853				64	%
Total Package Revenue			5,515				5,339				3	%			21,268				20,855				2	%
Freight Revenue:
U.S.			639				632				1	%			2,562				2,498				3	%
International Priority			409				465				(12	%)			1,678				1,827				(8	%)
International Airfreight			61				79				(23	%)			276				307				(10	%)
Total Freight Revenue			1,109				1,176				(6	%)			4,516				4,632				(3	%)
Other Revenue2			353				282				25	%			1,387				1,028				35	%
Total Express Revenue		$	6,977			$	6,797				3	%		$	27,171			$	26,515				2	%
Operating Expenses:
Salaries and employee benefits			2,545				2,457				4	%			10,045				9,657				4	%
Purchased transportation			603				482				25	%			2,331				1,828				28	%
Rentals and landing fees			422				411				3	%			1,684				1,680				—
Depreciation and amortization			357				300				19	%			1,350				1,169				15	%
Fuel			1,004				1,110				(10	%)			4,130				4,304				(4	%)
Maintenance and repairs			261				295				(12	%)			1,244				1,332				(7	%)
Business realignment, impairment and other charges3			229				134				71	%			243				134				81	%
Intercompany charges4			759				550				38	%			2,379				2,193				8	%
Other5			797				777				3	%			3,210				2,958				9	%
Total Operating Expenses			6,977				6,516				7	%			26,616				25,255				5	%
Operating Income			—			$	281				(100	%)		$	555			$	1,260				(56	%)
Operating Margin			0.0	%			4.1	%			(4.1	pts)			2.0	%			4.8	%			(2.8	pts)

 

1 -	International Domestic includes international intra-country express operations, including recent acquisitions in Mexico (July 2011), Poland (June 2012), France (July 2012) and Brazil (July 2012).

2 -	Includes FedEx Trade Networks and FedEx SupplyChain Systems.

3 -

2013 includes $129 million for the fourth quarter and $143 million for the full year of predominantly severance costs associated with the company’s voluntary buyout program and $100 million for both the fourth quarter and full year resulting from the decision to retire 10 aircraft and related engines. 2012 (fourth quarter and full year) represents charges resulting from the decision to retire 24 aircraft and related engines.

4 -	Includes allocations of $231 million in the fourth quarter of 2013 and $262 million for the full year for business realignment costs.

5 -	2012 includes the reversal of a $66 million legal reserve.

 

 

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FEDEX EXPRESS SEGMENT OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2013

(Unaudited)

 

		Three Months Ended May 31												Twelve Months Ended May 31
		2013				2012				%				2013				2012				%
PACKAGE STATISTICS1
Average Daily Package Volume (000s):
U.S. Overnight Box			1,131				1,113				2	%			1,134				1,146				(1	%)
U.S. Overnight Envelope			586				584				—				574				586				(2	%)
Total U.S. Overnight Package			1,717				1,697				1	%			1,708				1,732				(1	%)
U.S. Deferred			811				793				2	%			835				845				(1	%)
Total U.S. Domestic Package			2,528				2,490				2	%			2,543				2,577				(1	%)
International Priority			415				425				(2	%)			421				421				—
International Economy			164				148				11	%			155				138				12	%
Total International Export Package			579				573				1	%			576				559				3	%
International Domestic2			796				498				60	%			785				495				59	%
Total Average Daily Packages			3,903				3,561				10	%			3,904				3,631				8	%
Yield (Revenue Per Package):
U.S. Overnight Box		$	22.99			$	23.01				—			$	22.52			$	22.31				1	%
U.S. Overnight Envelope			11.91				11.81				1	%			11.66				11.65				—
U.S. Overnight Composite			19.21				19.15				—				18.87				18.70				1	%
U.S. Deferred			14.67				14.49				1	%			14.18				13.87				2	%
U.S. Domestic Composite			17.76				17.67				1	%			17.33				17.12				1	%
International Priority			62.32				63.54				(2	%)			61.28				63.47				(3	%)
International Economy			51.90				52.54				(1	%)			51.77				52.77				(2	%)
Total International Export Composite			59.37				60.71				(2	%)			58.72				60.83				(3	%)
International Domestic2			7.02				6.78				4	%			6.99				6.74				4	%
Composite Package Yield		$	21.74			$	23.07				(6	%)		$	21.36			$	22.44				(5	%)
FREIGHT STATISTICS1
Average Daily Freight Pounds (000s):
U.S.			7,363				7,270				1	%			7,612				7,487				2	%
International Priority			2,899				3,373				(14	%)			3,048				3,303				(8	%)
International Airfreight			961				1,138				(16	%)			1,066				1,171				(9	%)
Total Avg Daily Freight Pounds			11,223				11,781				(5	%)			11,726				11,961				(2	%)
Revenue Per Freight Pound:
U.S.		$	1.33			$	1.34				(1	%)		$	1.32			$	1.30				2	%
International Priority			2.18				2.12				3	%			2.16				2.16				—
International Airfreight			0.97				1.07				(9	%)			1.01				1.02				(1	%)
Composite Freight Yield		$	1.52			$	1.54				(1	%)		$	1.51			$	1.51				—
Operating Weekdays			65				65				—				255				256				—

 

1 -	Package and freight statistics include only the operations of FedEx Express.

2 -	International Domestic includes international intra-country express operations, including recent acquisitions in Mexico (July 2011), Poland (June 2012), France (July 2012) and Brazil (July 2012).

 

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FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2013

(Dollars in millions)

(Unaudited)

 

		Three Months Ended May 31												Twelve Months Ended May 31
		2013				2012				%				2013				2012				%
FINANCIAL HIGHLIGHTS
Revenues:
FedEx Ground		$	2,540			$	2,273				12	%		$	9,652			$	8,791				10	%
FedEx SmartPost			236				203				16	%			926				782				18	%
Total Revenues			2,776				2,476				12	%			10,578				9,573				10	%
Operating Expenses:
Salaries and employee benefits			408				369				11	%			1,586				1,451				9	%
Purchased transportation			1,067				948				13	%			4,191				3,762				11	%
Rentals			86				72				19	%			331				284				17	%
Depreciation and amortization			110				100				10	%			434				389				12	%
Fuel			4				3				33	%			17				14				21	%
Maintenance and repairs			50				46				9	%			190				176				8	%
Intercompany charges1			354				246				44	%			1,148				978				17	%
Other			233				198				18	%			893				755				18	%
Total Operating Expenses			2,312				1,982				17	%			8,790				7,809				13	%
Operating Income		$	464			$	494				(6	%)		$	1,788			$	1,764				1	%
Operating Margin			16.7	%			20.0	%			(3.3	pts)			16.9	%			18.4	%			(1.5	pts)
OPERATING STATISTICS
Operating Weekdays			65				65				—				255				256				—
Average Daily Package Volume (000s)
FedEx Ground			4,246				3,861				10	%			4,222				3,907				8	%
FedEx SmartPost			2,078				1,664				25	%			2,058				1,692				22	%
Yield (Revenue Per Package)
FedEx Ground		$	9.19			$	9.03				2	%		$	8.94			$	8.77				2	%
FedEx SmartPost		$	1.74			$	1.88				(7	%)		$	1.77			$	1.81				(2	%)

 

1 -	Includes allocations of $93 million in the fourth quarter of 2013 and $105 million for the full year for business realignment costs.

 

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FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2013

(Dollars in millions)

(Unaudited)

 

		Three Months Ended May 31												Twelve Months Ended May 31
		2013				2012				%				2013				2012				%
FINANCIAL HIGHLIGHTS
Revenue		$	1,388			$	1,395				(1	%)		$	5,401			$	5,282				2	%
Operating Expenses:
Salaries and employee benefits			592				595				(1	%)			2,342				2,316				1	%
Purchased transportation			218				222				(2	%)			865				851				2	%
Rentals			30				28				7	%			118				114				4	%
Depreciation and amortization			57				50				14	%			217				185				17	%
Fuel			151				166				(9	%)			598				636				(6	%)
Maintenance and repairs			49				49				—				191				192				(1	%)
Business realignment, impairment and other charges1			2				—				NM				3				—				NM
Intercompany charges2			154				109				41	%			484				433				12	%
Other			97				95				2	%			375				393				(5	%)
Total Operating Expenses			1,350				1,314				3	%			5,193				5,120				1	%
Operating Income		$	38			$	81				(53	%)		$	208			$	162				28	%
Operating Margin			2.7	%			5.8	%			(3.1	pts)			3.9	%			3.1	%			0.8	pts
OPERATING STATISTICS
LTL Operating Weekdays			65				65				—				253				255				(1	%)
Average Daily LTL Shipments (000s)
Priority			58.8				61.6				(5	%)			59.3				60.4				(2	%)
Economy			26.8				26.2				2	%			26.4				24.5				8	%
Total Average Daily LTL Shipments			85.6				87.8				(3	%)			85.7				84.9				1	%
Weight Per LTL Shipment (lbs)
Priority			1,272				1,225				4	%			1,237				1,202				3	%
Economy			981				1,018				(4	%)			990				1,045				(5	%)
Composite Weight Per LTL Shipment			1,181				1,163				2	%			1,161				1,156				—
LTL Yield (Revenue/CWT)
Priority		$	17.50			$	17.67				(1	%)		$	17.80			$	18.02				(1	%)
Economy			25.87				24.67				5	%			25.90				23.96				8	%
Composite LTL Yield		$	19.68			$	19.50				1	%		$	19.94			$	19.57				2	%

 

1 -	2013 includes severance costs associated with the company’s voluntary buyout program.

2 -	Includes allocations of $41 million in the fourth quarter of 2013 and $47 million for the full year for business realignment costs.

 

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