Exhibit 99.1

FOR IMMEDIATE RELEASE

FedEx Corp. Reports Higher Fourth Quarter Earnings

Strong Earnings Growth Expected in Fiscal 2015

MEMPHIS, Tenn., June 18, 2014 … FedEx Corp. (NYSE: FDX) today reported earnings of $2.46 per diluted share for the fourth quarter ended May 31. Last year’s fourth quarter earnings were $2.13 per diluted share, excluding a $0.98 per diluted share business realignment program charge and a $0.20 per diluted share noncash aircraft impairment charge at FedEx Express. Including last year’s charges, earnings were $0.95 per diluted share.

“An outstanding fourth quarter helped FedEx post solid results for fiscal 2014, and we believe we are well positioned for a strong fiscal 2015,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “I would like to extend my sincere appreciation to the entire FedEx team for their contribution to our results and their continued commitment to providing outstanding service to our customers and connecting people and possibilities around the world.”

Fourth Quarter Results

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

 

		Fiscal 2014		Fiscal 2013
				Adjusted (non-GAAP)		As Reported (GAAP)
Revenue		$11.8 billion		$11.4 billion		$11.4 billion
Operating Income		$1.18 billion		$1.10 billion		$502 million
Operating Margin		10.0%		9.6%		4.4%
Net Income		$730 million		$679 million		$303 million
Diluted EPS		$2.46		$2.13		$0.95

 

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Excluding business realignment program costs and aircraft impairment charges last year, operating results improved on higher volumes and operational efficiencies at FedEx Freight, increased volumes and yields at FedEx Ground, and better revenue and cost performance at FedEx Express.

During the fourth quarter, the company acquired 9.9 million shares of FedEx common stock, increasing the fiscal 2014 purchase total to 36.8 million shares. As of May 31, 2014, 5.3 million shares remained under the existing share repurchase authorizations. Share repurchases benefited fourth quarter earnings by $0.12 per diluted share.

Full Year Results

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

 

		Fiscal 2014		Fiscal 2013
				Adjusted (non-GAAP)		As Reported (GAAP)
Revenue		$45.6 billion		$44.3 billion		$44.3 billion
Operating Income		$3.45 billion		$3.21 billion		$2.55 billion
Operating Margin		7.6%		7.3%		5.8%
Net Income		$2.10 billion		$1.98 billion		$1.56 billion
Diluted EPS		$6.75		$6.23		$4.91

Capital spending for fiscal 2014 was $3.5 billion.

Outlook

For fiscal 2015, FedEx projects earnings to be $8.50 to $9.00 per diluted share. The outlook assumes no net year-over-year fuel impact and continued moderate economic growth. Capital spending for fiscal 2015 is expected to increase to approximately $4.2 billion, which includes planned aircraft deliveries to support the company’s fleet modernization program and continued expansion of the FedEx Ground network.

“Fiscal 2014 was a good year for FedEx and we expect fiscal 2015 to be even better,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “With continued modest economic improvement, our results in fiscal 2015 should benefit from base performance improvement and ongoing execution of our profit improvement initiatives at FedEx Express, continued profitable growth at FedEx Ground and FedEx Freight, and our share repurchase program. We remain committed to improving earnings, cash flows, returns on invested capital and returns to shareowners, with the most recent example of the latter being our announced 33% increase in the quarterly dividend.”

 

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FedEx Express Segment

For the fourth quarter, the FedEx Express segment reported:

 

•

Revenue of $7.00 billion, up slightly from last year’s $6.98 billion

 

•

Operating income of $475 million, up 3% from an adjusted $460 million a year ago. Including charges, last year’s operating income was $0.

 

•

Operating margin of 6.8%, up from an adjusted 6.6% the previous year. Including charges, last year’s operating margin was 0.0%.

Revenue increased due to 2% higher package volume and higher base package yields, partially offset by the effects of one fewer operating day, lower fuel surcharges and lower express freight revenues. U.S. domestic average daily volume increased 3%, while U.S. domestic revenue per package was flat as lower fuel surcharges offset higher weight per package and favorable service mix. International export revenue per package grew 2%, as improved rates, higher weight per package and favorable service mix more than offset lower fuel surcharges. International export volume grew 2%, as FedEx International Economy grew 5% while FedEx International Priority^® was flat despite reduced lower-yielding distribution services volume.

Operating results increased as higher base package yields and volume, along with lower pension expense, more than offset the significant negative net impact of fuel, lower freight revenue and one fewer operating day.

On May 1, 2014, Express completed the acquisition of Supaswift businesses in South Africa and six other countries: Botswana, Malawi, Mozambique, Namibia, Swaziland and Zambia. The acquisition of Supaswift will increase FedEx’s capabilities in one of the world’s most rapidly developing regions and offer tremendous opportunities for both local and international customers to access new markets.

 

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FedEx Ground Segment

For the fourth quarter, the FedEx Ground segment reported:

 

•

Revenue of $3.01 billion, up 8% from last year’s $2.78 billion

 

•

Operating income of $586 million, up 5% from an adjusted $557 million a year ago. Including charges, last year’s operating income was $464 million.

 

•

Operating margin of 19.5%, down from an adjusted 20.1% the previous year. Including charges, last year’s operating margin was 16.7%.

FedEx Ground average daily volume grew 8% in the fourth quarter, primarily driven by growth in e-commerce. Revenue per package increased 2% due to rate increases and higher residential surcharges, partially offset by lower fuel surcharges. FedEx SmartPost average daily volume decreased 8% while net revenue per package was up 8% due to rate increases and improved customer mix, partially offset by higher postage costs.

Operating results benefited from higher Ground volume and revenue per package, partially offset by higher network expansion costs and one fewer operating day.

FedEx Freight Segment

For the fourth quarter, the FedEx Freight segment reported:

 

•

Revenue of $1.55 billion, up 12% from last year’s $1.39 billion

 

•

Operating income of $122 million, up 51% from an adjusted $81 million a year ago. Including charges, last year’s operating income was $38 million.

 

•

Operating margin of 7.9%, up from an adjusted 5.8% the previous year. Including charges, last year’s operating margin was 2.7%.

Less-than-truckload (LTL) average daily shipments grew 12%, including a 14% increase in demand for Priority service. Weight per shipment grew 2%, driving a 1% increase in revenue per shipment.

Operating results improved due to the positive impacts of higher average daily shipments, higher weight per shipment and improved operational efficiencies, partially offset by one fewer operating day.

Effective June 2, 2014, FedEx Freight increased its published fuel surcharge indices by three percentage points.

 

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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 $46 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 2014 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 18 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, our ability to execute on our profit improvement program at FedEx Express, 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 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: Patrick Fitzgerald 901-818-7300

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 prior period results will allow for more accurate comparisons of the company’s 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
		Income				Margin				Income				Per 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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Full Year Fiscal 2013

 

		FedEx Corporation
Dollars in millions, except EPS		Operating								Net				Diluted Earnings
		Income				Margin				Income				Per 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.

# # #

 

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FEDEX CORP. FINANCIAL HIGHLIGHTS

Fourth Quarter Fiscal 2014

(In millions, except earnings per share)

(Unaudited)

 

		Three Months Ended May 31												Twelve Months Ended May 31
		2014				2013				%				2014				2013				%
Revenue:
FedEx Express segment		$	6,998			$	6,977				—			$	27,121			$	27,171				—
FedEx Ground segment			3,007				2,776				8%				11,617				10,578				10%
FedEx Freight segment			1,552				1,388				12%				5,757				5,401				7%
FedEx Services segment			402				406				(1%	)			1,536				1,580				(3%	)
Other & eliminations			(120	)			(112	)			(7%	)			(464	)			(443	)			(5%	)
Total Revenue			11,839				11,435				4%				45,567				44,287				3%
Operating Expenses:
Salaries and employee benefits			4,163				4,192				(1%	)			16,555				16,570				—
Purchased transportation			2,029				1,861				9%				8,011				7,272				10%
Rentals and landing fees			672				633				6%				2,622				2,521				4%
Depreciation and amortization			649				622				4%				2,587				2,386				8%
Fuel			1,154				1,158				—				4,557				4,746				(4%	)
Maintenance and repairs			465				432				8%				1,862				1,909				(2%	)
Business realignment, impairment and other charges			—				596				NM				—				660				NM
Other			1,524				1,439				6%				5,927				5,672				4%
Total Operating Expenses			10,656				10,933				(3%	)			42,121				41,736				1%
Operating Income:
FedEx Express segment			475				—				NM				1,172				555				111%
FedEx Ground segment			586				464				26%				1,955				1,788				9%
FedEx Freight segment			122				38				221%				319				208				53%
Total Operating Income			1,183				502				136%				3,446				2,551				35%
Other (Expense) Income:
Interest, net			(47	)			(24	)			NM				(142	)			(61	)			NM
Other, net			1				(6	)			NM				(15	)			(35	)			NM
Total Other (Expense) Income			(46	)			(30	)			NM				(157	)			(96	)			NM
Pretax Income			1,137				472				141%				3,289				2,455				34%
Provision for Income Taxes			407				169				141%				1,192				894				33%
Net Income		$	730			$	303				141%			$	2,097			$	1,561				34%
Diluted Earnings Per Share		$	2.46			$	0.95				159%			$	6.75			$	4.91				37%
Weighted Average Diluted Common and Common Equivalent Shares			296				319				(7%	)			310				317				(2%	)
Capital Expenditures		$	979			$	945				4%			$	3,533			$	3,375				5%

 

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FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS

Fourth Quarter Fiscal 2014

(In millions)

(Current period is unaudited)

 

		May 31, 2014				May 31, 2013
ASSETS
Current Assets
Cash and cash equivalents		$	2,908			$	4,917
Receivables, less allowances			5,460				5,044
Spare parts, supplies and fuel, less allowances			463				457
Deferred income taxes			522				533
Prepaid expenses and other			330				323
Total current assets			9,683				11,274
Property and Equipment, at Cost			40,691				38,109
Less accumulated depreciation and amortization			21,141				19,625
Net property and equipment			19,550				18,484
Other Long-Term Assets
Goodwill			2,790				2,755
Other assets			1,047				1,054
Total other long-term assets			3,837				3,809
		$	33,070			$	33,567
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current Liabilities
Current portion of long-term debt		$	1			$	251
Accrued salaries and employee benefits			1,277				1,688
Accounts payable			1,971				1,879
Accrued expenses			2,063				1,932
Total current liabilities			5,312				5,750
Long-Term Debt, Less Current Portion			4,736				2,739
Other Long-Term Liabilities
Deferred income taxes			2,114				1,652
Pension, postretirement healthcare and other benefit obligations			3,484				3,916
Self-insurance accruals			1,038				987
Deferred lease obligations			758				778
Deferred gains, principally related to aircraft transactions			206				227
Other liabilities			145				120
Total other long-term liabilities			7,745				7,680
Commitments and Contingencies
Common Stockholders’ Investment
Common stock, $0.10 par value, 800 million shares authorized			32				32
Additional paid-in capital			2,643				2,668
Retained earnings			20,429				18,519
Accumulated other comprehensive loss			(3,694	)			(3,820	)
Treasury stock, at cost			(4,133	)			(1	)
Total common stockholders’ investment			15,277				17,398
		$	33,070			$	33,567

 

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FEDEX CORP. CONDENSED CONSOLIDATED

STATEMENTS OF CASH FLOWS

Fourth Quarter Fiscal 2014

(In millions)

(Current period is unaudited)

 

		Year Ended May 31
		2014				2013
Operating Activities:
Net income		$	2,097			$	1,561
Noncash charges:
Depreciation and amortization			2,587				2,386
Other, net			828				1,276
Changes in operating assets and liabilities, net			(1,248	)			(535	)
Cash provided by operating activities			4,264				4,688
Investing Activities:
Capital expenditures			(3,533	)			(3,375	)
Business acquisitions, net of cash acquired			(36	)			(483	)
Proceeds from asset dispositions and other			18				55
Cash used in investing activities			(3,551	)			(3,803	)
Financing Activities:
Principal payments on debt			(254	)			(417	)
Proceeds from debt issuances			1,997				1,739
Dividends paid			(187	)			(177	)
Purchase of treasury stock			(4,857	)			(246	)
Other, net			582				285
Cash (used in) provided by financing activities			(2,719	)			1,184
Effect of exchange rate changes on cash			(3	)			5
Net increase in cash and cash equivalents			(2,009	)			2,074
Cash and cash equivalents at beginning of period			4,917				2,843
Cash and cash equivalents at end of period		$	2,908			$	4,917

 

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FEDEX EXPRESS SEGMENT FINANCIAL HIGHLIGHTS

Fourth Quarter Fiscal 2014

(Dollars in millions)

(Unaudited)

 

		Three Months Ended May 31												Twelve Months Ended May 31
		2014				2013				%				2014				2013				%
Revenues:
Package Revenue:
U.S. Overnight Box		$	1,703			$	1,691				1%			$	6,555			$	6,513				1%
U.S. Overnight Envelope			426				453				(6%	)			1,636				1,705				(4%	)
Total U.S. Overnight			2,129				2,144				(1%	)			8,191				8,218				—
U.S. Deferred			819				774				6%				3,188				3,020				6%
Total U.S. Package Revenue			2,948				2,918				1%				11,379				11,238				1%
International Priority			1,691				1,680				1%				6,451				6,586				(2%	)
International Economy			590				554				6%				2,229				2,046				9%
Total International Export Package			2,281				2,234				2%				8,680				8,632				1%
International Domestic1			369				363				2%				1,446				1,398				3%
Total Package Revenue			5,598				5,515				2%				21,505				21,268				1%
Freight Revenue:
U.S.			569				639				(11%	)			2,355				2,562				(8%	)
International Priority			410				409				—				1,594				1,678				(5%	)
International Airfreight			48				61				(21%	)			205				276				(26%	)
Total Freight Revenue			1,027				1,109				(7%	)			4,154				4,516				(8%	)
Other Revenue2			373				353				6%				1,462				1,387				5%
Total Express Revenue		$	6,998			$	6,977				—			$	27,121			$	27,171				—
Operating Expenses:
Salaries and employee benefits			2,496				2,545				(2%	)			9,914				10,045				(1%	)
Purchased transportation			635				603				5%				2,511				2,331				8%
Rentals and landing fees			432				422				2%				1,705				1,684				1%
Depreciation and amortization			372				357				4%				1,488				1,350				10%
Fuel			991				1,004				(1%	)			3,943				4,130				(5%	)
Maintenance and repairs			294				261				13%				1,182				1,244				(5%	)
Business realignment, impairment and other charges3			—				229				NM				—				243				NM
Intercompany charges4			513				759				(32%	)			2,027				2,379				(15%	)
Other5			790				797				(1%	)			3,179				3,210				(1%	)
Total Operating Expenses			6,523				6,977				(7%	)			25,949				26,616				(3%	)
Operating Income		$	475				—				NM			$	1,172			$	555				NM
Operating Margin			6.8%				0.0%				6.8 pts				4.3%				2.0%				2.3 pts

 

1 –	International Domestic revenues represent international intra-country express operations, including countries such as Mexico, Brazil and our recent acquisition in Southern Africa (May 2014).

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.

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

5 –	Includes predominately costs associated with outside service contracts (such as security, facility services and cargo handling), professional fees, uniforms, insurance and advertising.

 

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FEDEX EXPRESS SEGMENT OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2014

(Unaudited)

 

		Three Months Ended May 31												Twelve Months Ended May 31
		2014				2013				%				2014				2013				%
PACKAGE STATISTICS1
Average Daily Package Volume (000s):
U.S. Overnight Box			1,195				1,131				6%				1,164				1,134				3%
U.S. Overnight Envelope			539				586				(8%	)			538				574				(6%	)
Total U.S. Overnight Package			1,734				1,717				1%				1,702				1,708				—
U.S. Deferred			864				811				7%				869				835				4%
Total U.S. Domestic Package			2,598				2,528				3%				2,571				2,543				1%
International Priority			416				415				—				410				421				(3%	)
International Economy			173				164				5%				170				155				10%
Total International Export Package			589				579				2%				580				576				1%
International Domestic2			813				796				2%				819				785				4%
Total Average Daily Packages			4,000				3,903				2%				3,970				3,904				2%
Yield (Revenue Per Package):
U.S. Overnight Box		$	22.26			$	22.99				(3%	)		$	22.18			$	22.52				(2%	)
U.S. Overnight Envelope			12.36				11.91				4%				11.97				11.66				3%
U.S. Overnight Composite			19.18				19.21				—				18.95				18.87				—
U.S. Deferred			14.81				14.67				1%				14.44				14.18				2%
U.S. Domestic Composite			17.73				17.76				—				17.42				17.33				1%
International Priority			63.57				62.32				2%				61.88				61.28				1%
International Economy			53.21				51.90				3%				51.75				51.77				—
Total International Export Composite			60.52				59.37				2%				58.92				58.72				—
International Domestic2			7.10				7.02				1%				6.95				6.99				(1%	)
Composite Package Yield		$	21.87			$	21.74				1%			$	21.32			$	21.36				—
FREIGHT STATISTICS1
Average Daily Freight Pounds (000s):
U.S.			7,865				7,363				7%				7,854				7,612				3%
International Priority			2,936				2,899				1%				2,922				3,048				(4%	)
International Airfreight			677				961				(30%	)			798				1,066				(25%	)
Total Avg Daily Freight Pounds			11,478				11,223				2%				11,574				11,726				(1%	)
Revenue Per Freight Pound:
U.S.		$	1.13			$	1.33				(15%	)		$	1.18			$	1.32				(11%	)
International Priority			2.18				2.18				—				2.15				2.16				—
International Airfreight			1.12				0.97				15%				1.01				1.01				—
Composite Freight Yield		$	1.40			$	1.52				(8%	)		$	1.41			$	1.51				(7%	)
Operating Weekdays			64				65				(2%	)			254				255				—

 

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

2 –	International Domestic revenues represent international intra-country express operations, including countries such as Mexico, Brazil and our recent acquisition in Southern Africa (May 2014).

 

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FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2014

(Dollars in millions)

(Unaudited)

 

		Three Months Ended May 31												Twelve Months Ended May 31
		2014				2013				%				2014				2013				%
FINANCIAL HIGHLIGHTS
Revenues:
FedEx Ground		$	2,776			$	2,540				9%			$	10,634			$	9,652				10%
FedEx SmartPost			231				236				(2%	)			983				926				6%
Total Revenues			3,007				2,776				8%				11,617				10,578				10%
Operating Expenses:
Salaries and employee benefits			437				408				7%				1,756				1,586				11%
Purchased transportation			1,159				1,067				9%				4,635				4,191				11%
Rentals			103				86				20%				402				331				21%
Depreciation and amortization			118				110				7%				468				434				8%
Fuel			3				4				(25%	)			17				17				—
Maintenance and repairs			56				50				12%				222				190				17%
Intercompany charges1			290				354				(18%	)			1,154				1,148				1%
Other2			255				233				9%				1,008				893				13%
Total Operating Expenses			2,421				2,312				5%				9,662				8,790				10%
Operating Income		$	586			$	464				26%			$	1,955			$	1,788				9%
Operating Margin			19.5%				16.7%				2.8 pts				16.8%				16.9%				(0.1 pts	)
OPERATING STATISTICS
Operating Weekdays
FedEx Ground			64				65				(2%	)			254				255				—
FedEx SmartPost			64				65				(2%	)			252				254				(1%	)
Average Daily Package Volume (000s)
FedEx Ground			4,597				4,246				8%				4,588				4,222				9%
FedEx SmartPost			1,920				2,078				(8%	)			2,186				2,058				6%
Yield (Revenue Per Package)
FedEx Ground		$	9.41			$	9.19				2%			$	9.10			$	8.94				2%
FedEx SmartPost		$	1.88			$	1.74				8%			$	1.78			$	1.77				1%

 

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

2 –	Includes predominately costs associated with outside service contracts (such as security and facility services), insurance and professional fees.

 

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FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Fourth Quarter Fiscal 2014

(Dollars in millions)

(Unaudited)

 

		Three Months Ended May 31												Twelve Months Ended May 31
		2014				2013				%				2014				2013				%
FINANCIAL HIGHLIGHTS
Revenue		$	1,552			$	1,388				12%			$	5,757			$	5,401				7%
Operating Expenses:
Salaries and employee benefits			637				592				8%				2,444				2,342				4%
Purchased transportation			266				218				22%				981				865				13%
Rentals			37				30				23%				131				118				11%
Depreciation and amortization			59				57				4%				231				217				6%
Fuel			159				151				5%				595				598				(1%	)
Maintenance and repairs			45				49				(8%	)			179				191				(6%	)
Business realignment, impairment and other charges1			—				2				NM				—				3				NM
Intercompany charges2			112				154				(27%	)			461				484				(5%	)
Other3			115				97				19%				416				375				11%
Total Operating Expenses			1,430				1,350				6%				5,438				5,193				5%
Operating Income		$	122			$	38				NM			$	319			$	208				53%
Operating Margin			7.9%				2.7%				5.2 pts				5.5%				3.9%				1.6 pts
OPERATING STATISTICS
LTL Operating Weekdays			64				65				(2%	)			252				253				—
Average Daily LTL Shipments (000s)
Priority			67.0				58.8				14%				62.9				59.3				6%
Economy			28.7				26.8				7%				27.7				26.4				5%
Total Average Daily LTL Shipments			95.7				85.6				12%				90.6				85.7				6%
Weight Per LTL Shipment (lbs)
Priority			1,280				1,272				1%				1,262				1,237				2%
Economy			1,013				981				3%				1,000				990				1%
Composite Weight Per LTL Shipment			1,200				1,181				2%				1,182				1,161				2%
LTL Revenue/Shipment
Priority		$	225.29			$	222.69				1%			$	223.61			$	220.32				1%
Economy			260.71				253.87				3%				258.05				256.38				1%
Composite LTL Revenue/Shipment		$	235.91			$	232.45				1%			$	234.23			$	231.52				1%
LTL Revenue/CWT
Priority		$	17.60			$	17.50				1%			$	17.73			$	17.80				—
Economy			25.73				25.87				(1%	)			25.80				25.90				—
Composite LTL Revenue/CWT		$	19.66			$	19.68				—			$	19.82			$	19.94				(1%	)

 

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.

3 –	Includes predominately costs associated with insurance, professional fees and outside service contracts (such as security and facility services).

 

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