About these ads

Tag Archives: FedEx Express

FedEx Corporation’s earnings surge in the first quarter to $606 million

FedEx Corporation (FedEx Express) (Memphis) reported its earnings for its fiscal first quarter surged by 24 percent to net income of $606 million. The corporation issued this financial report:

FedEx Corporation today reported earnings of $2.10 per diluted share for the first quarter ended August 31, up 37% from last year’s $1.53 per share.

First Quarter Results

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

• Revenue of $11.7 billion, up 6% from $11.0 billion the previous year

• Operating income of $987 million, up 24% from $795 million last year

• Operating margin of 8.5%, up from 7.2% the previous year

• Net income of $606 million, up 24% from last year’s $489 million

Operating income increased primarily due to higher volumes and increased yields at all three transportation segments. Results in the first quarter also include benefits from lower pension expense and the company’s profit improvement programs. These benefits were partially offset by higher aircraft maintenance expense due to the timing of certain engine maintenance events.

During the quarter, the company acquired 5.3 million shares of FedEx common stock. As of August 31, 2014, no shares remained under the existing share repurchase authorizations. Share repurchases benefited earnings in the quarter by $0.15 per diluted share.

Outlook

FedEx reaffirmed its fiscal 2015 earnings forecast of $8.50 to $9.00 per diluted share. The outlook assumes no net year-over-year fuel impact and continued moderate economic growth. The capital spending forecast for fiscal 2015 remains $4.2 billion.

“FedEx reported strong first quarter results, as all three of our transportation segments drove higher revenues and improved profitability year over year,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “Our profit improvement programs are progressing as planned and we continue to expect strong earnings growth this year.”

2015 Rate Increases

As previously announced, FedEx Express, FedEx Ground and FedEx Freight will increase shipping rates effective January 5, 2015.

FedEx Express will increase shipping rates by an average of 4.9% for U.S. domestic, U.S. export and U.S. import services.

FedEx Ground and FedEx Home Delivery will increase shipping rates by an average of 4.9%. In addition, as announced in May, FedEx Ground will also begin applying dimensional weight pricing to all shipments.

FedEx Freight will increase shipping rates by an average of 4.9%. This rate change applies to eligible FedEx Freight shipments within the U.S. (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands), between the contiguous U.S. and Canada, within Canada, between the contiguous U.S. and Mexico, and within Mexico.

Details of all changes to rates and surcharges are available at fedex.com/us/2015rates.

Corporate Headquarters Costs

Effective this fiscal year, the company ceased allocating to its transportation segments the costs associated with the corporate headquarters division. These costs are now included in “Corporate, eliminations and other.” Prior year amounts in this release have been revised to conform to the current presentation.

FedEx Express Segment

For the first quarter, the FedEx Express segment reported:

• Revenue of $6.86 billion, up 4% from last year’s $6.61 billion

• Operating income of $369 million, up 35% from $273 million a year ago

• Operating margin of 5.4%, up from 4.1% the previous year

Revenue increased due to higher U.S. domestic package volume and international export package yields partially offset by lower freight revenue. U.S. domestic package volume grew 5%, as 8% growth in overnight and deferred box volume was partially offset by lower envelope volume. U.S. domestic yield increased 1% from higher fuel surcharges, changes in service mix and increased rates. FedEx International Priority® volume grew 1%, while FedEx International Economy® volume increased 3%. International export revenue per package increased 3% due to fuel surcharges, higher rates and weight per package.

Operating income and margin improved as higher U.S. domestic package volume, improved international export yield and benefits from profit improvement programs more than offset higher aircraft maintenance expense and lower freight revenues.

Copyright Photo: Steve Bailey/AirlinersGallery.com. Boeing 777-FHT N883FD (msn 39285) of FedEx Express climbs away from the runway at Anchorage Ted Stevens International Airport (ANC).

FedEx Express: AG Slide Show

About these ads

FedEx Corporation reports fiscal year net income of $1.56 billion

FedEx Corporation (FedEx Express) (Memphis) 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.”

For its entire fiscal year the cooperation reported net income (GAAP) of $1.56 billion.

Read the full report: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-FS2 N857FD (msn 37728) climbs into the sky at Anchorage International Airport (ANC).

FedEx Express: AG Slide Show

FedEx misses second quarter Wall Street estimates but still reports net income of $500 million, up 14%

FedEx Corporation (FedEx Express) (Memphis) today reported earnings of $1.57 per diluted share for the second quarter ended November 30, compared to $1.39 per share last year. Last year’s second quarter results were impacted by $0.11 per diluted share due to the effects of Superstorm Sandy.

“FedEx posted solid second-quarter earnings, reflecting improved performance at FedEx Express, as the profit improvement plan introduced more than a year ago continues to gain momentum,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “The power of our broad global portfolio continues to drive our growth and I am confident we are well on our way to achieving the ambitious goals we have set.”

Second Quarter Results

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

• Revenue of $11.4 billion, up 3% from $11.1 billion the previous year

• Operating income of $827 million, up 15% from $718 million last year

• Operating margin of 7.3%, up from 6.5% the previous year

• Net income of $500 million, up 14% from last year’s $438 million

Operating income and margin increased primarily due to yield and cost management at FedEx Express. Results also benefited from the favorable comparison to last year’s Sandy-impacted results, lower pension expense and a modest benefit from the voluntary employee severance program.

In October, FedEx Corporation announced the authorization of a new share repurchase program of up to 32 million shares of common stock, which augmented the 7.4 million shares then remaining under the previously authorized repurchase program. During the second quarter, the company repurchased 7.2 million shares of FedEx common stock, increasing the fiscal 2014 year-to-date purchase total to 10.0 million shares. The second quarter share repurchases had no effect on the quarter’s earnings per share, but are expected to improve full year earnings by $0.04 per share.

Outlook

FedEx is increasing its forecast of full-year earnings per share growth to 8% to 14% above last year’s adjusted results, compared to its previous growth range of 7% to 13%. This outlook reflects share repurchases made to date but does not include any benefit from additional share repurchases. Share repurchases are expected to continue, but the timing will be at the company’s discretion. The outlook also assumes the market outlook for fuel prices and continued moderate economic growth. The capital spending forecast for fiscal 2014 remains $4 billion.

“We remain on track to deliver a solid increase in earnings this fiscal year,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “FedEx Express reported significant year-over-year improvement in earnings during the quarter, aided by continued execution of our profit improvement programs and by ongoing cost reduction initiatives. We continue to look for additional ways to improve efficiencies and remain committed to increasing long-term shareowner value.”

FedEx Express Segment

For the second quarter, the FedEx Express segment reported:

• Revenue of $6.84 billion, down slightly from last year’s $6.86 billion

• Operating income of $326 million, up 42% from $230 million a year ago

• Operating margin of 4.8%, up from 3.4% the previous year

Revenue decreased slightly due to lower express freight revenue and lower fuel surcharges, mostly offset by increased base package yields. U.S. domestic revenue per package increased 2%, as higher rates and weight per package were partially offset by lower fuel surcharges. U.S. domestic average daily package volume decreased slightly.

FedEx International Priority® (IP) revenue per package increased 3% while average daily volume declined 5%. Within the IP category, average daily volume for the lower-yielding distribution services declined while IP average daily volume, excluding these distribution services, increased 1%. FedEx International Economy® average daily volume grew 10%.

Operating income and margin improved year over year due to higher base package yields, lower pension expense, and lower net expenses from ongoing cost reduction activities.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. A beautiful takeoff portrait of FedEx Express’ Boeing 777-FS2 N852FD (msn 37723) after a stop at Anchorage, Alaska (click on the photo for the full-size view).

FedEx Express: AG Slide Show

Video: How FedEx turns a Boeing 757 freighter in 55 minutes:

Video: FedEx has great TV advertisements that have won several marketing awards. Here is the latest for Christmas 2013:

 

FedEx gets ready to put its first Boeing 767-300 freighter into revenue service

FedEx Express (Memphis), an operating company of FedEx Corporation (Memphis), yesterday introduced its new Boeing 767-300 cargo jet scheduled to begin service this fall. The aircraft is the first of several new 767-300 freighters being added to the FedEx fleet, and represents a major step in the company’s strategically important aircraft fleet modernization program. The 767-300 joins 777s and 757s in the company’s growing fleet of more efficient, lower-emission freighters.

The aircraft was center stage at an event attended by FedEx team members and special guests at the company’s World Hub in Memphis.

The initial 767 was delivered to FedEx from Boeing last month and is undergoing the certification process required to begin service. It is among 50 767s FedEx has ordered, which are scheduled to be delivered through the end of the company’s fiscal year 2019.

With a maximum gross payload capacity of 127,100 pounds, the medium wide-body 767 Freighter has a flight range of 2,922 nautical miles (3,362 statute miles).

The 767 brings FedEx an array of double-digit efficiencies. The freighter is approximately 30 percent more fuel efficient and has unit operating costs that are more than 20 percent lower than the MD10 aircraft it will replace. The ability to share parts, tooling and flight simulators with FedEx 757 freighters is another efficiency of the 767.

Across its aircraft fleet, FedEx projects a 30 percent reduction in its unit carbon emissions by the year 2020. In addition, the company has reaffirmed its commitment to sourcing at least 30 percent of its jet fuel from alternative fuels by the year 2030.

With the 767 freighter, FedEx is also introducing a new “efficient container” or Unit Load Device used to hold individual packages on the aircraft. The FedEx Efficient Container is lighter and its construction includes more recycled materials.

Under its aircraft fleet modernization program, FedEx began upgrading its fleet in 2007 with the addition of 757 freighters to replace 727s. The final 727 in the FedEx fleet was retired in June.

In 2009, the company introduced the 777, the world’s largest twin-engine cargo freighter with a non-stop flight range of 5,800 nautical miles (6,675 statute miles) and a cargo capacity of 178,000 pounds in typical FedEx service.

Copyright Photo: Duncan Kirk/AirlinersGallery.com. Boeing 767-3S2F ER N101FE (msn 42706) taxies at Paine Field near Everett. N101FE was delivered to FedEx on September 4, 2013.

FedEx: AG Slide Show

FedEx Corporation reports net income of $489 million in the fiscal 1Q, up 7%

FedEx Corporation (FedEx Express) (Memphis) reported earnings of $1.53 per diluted share for the first quarter ended August 31, compared to $1.45 per share last year.

“Growth in overall demand for our broad global portfolio of solutions drove our improved first quarter results,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “FedEx Express remains focused on reducing costs while facing challenging global economic conditions. Meanwhile, FedEx Ground continues to generate strong profitability on growing customer demand for its services.”

First Quarter Results

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

• Revenue of $11.0 billion, up 2% from $10.8 billion the previous year

• Operating income of $795 million, up 7% from $742 million last year

• Operating margin of 7.2%, up from 6.9% the previous year

• Net income of $489 million, up 7% from last year’s $459 million

Revenue and earnings increased during the quarter, driven by solid performance at each of the company’s transportation segments. Results include significant headwinds from the net year-over-year impact from the timing lag that exists between when fuel prices change and indexed fuel surcharges automatically adjust, as well as one fewer operating day.

Outlook

FedEx reaffirmed its forecast of full-year earnings per share growth of 7% to 13% from last year’s adjusted results. This outlook assumes the market outlook for fuel prices, U.S. GDP growth of 2.1% and world GDP growth of 2.6%. The capital spending forecast for fiscal 2014 remains $4 billion.

“We remain confident in our full year earnings outlook despite tepid global economic growth,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “FedEx Express continued to execute on its profit improvement initiatives during our first quarter. We remain focused and are committed to FedEx Express achieving its $1.6 billion operating profit improvement target by the end of fiscal 2016.”

2014 Rate Increases

FedEx Express will increase shipping rates by an average of 3.9% for U.S. domestic, U.S. export and U.S. import services effective January 6, 2014. The FedEx Ground and FedEx SmartPost pricing changes for 2014 will be announced later this year. FedEx Freight implemented a 4.5% general rate increase on July 1, 2013.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 777-FS2 N852FD (msn 37723) approaches Anchorage International Airport for landing.

FedEx Express: AG Slide Show

FedEx Express takes delivery of its first Boeing 767-300F freighter

Boeing (Chicago) and FedEx Express (Memphis), an operating company of FedEx Corp. (Memphis), yesterday (September 4) celebrated the delivery of the company’s first 767-300 freighter. The delivery supports the FedEx strategy to modernize its fleet with more efficient freighters.

The 767 Freighter is an ideal upgrade for the fleet serving the FedEx Express domestic network, providing improved fuel, maintenance and cost savings over the MD-10 freighters it will replace.  FedEx Express gains additional efficiency through the ability to share parts, tooling and flight simulators between the 767 and the more than 70 757 freighters already in its fleet.

The 767 freighter is based on the popular 767-300 ER (extended range) passenger airplane. Able to carry approximately 58 tons (52.7 tons) of revenue cargo with intercontinental range, the 767 Freighter is ideal for developing new long-haul, regional or feeder markets.

The airplane joins other Boeing freighters in the FedEx fleet such as the MD-10, MD-11, 757 and the 777.

Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 767-3S2F N101FE (msn 42706) is pictured at Paine Field near Everett, WA on a test flight prior to the official hand over.

FedEx Express: AG Slide Show

FedEx Pilots’ Union: Report on UPS Boeing 747 crash highlights the need for new regulations on the carriage of Lithium Batteries

The FedEx Express Pilots Union (FedEx Express) (Memphis) has issued this statement reference the release of the Accident Report on the UPS Airlines (Atlanta and Louisville) Boeing 747-400F freighter crash at Dubai (please see our previous report). At the heart of the issue, are lithium batteries safe on any airplane?:

On September 3, 2010, our industry lost two fellow aviators when UPS Flight 6 crashed near Dubai, United Arab Emirates (UAE). The UAE General Civil Aviation Authority (GCAA) released its final report concerning the investigation into this fatal crash. The GCAA, while not pinpointing the origin of the fateful blaze, determined that the ensuing fire was promulgated by lithium batteries and found that smoke-detection equipment took too long to alert the crew.

The report provides recommendations specific to air cargo fire safety. The FedEx Master Executive Council (MEC) joins Air Line Pilots Association (ALPA), Int’l in praising the GCAA for its thorough report. The report makes unmistakably clear the dangers of carrying large quantities of lithium batteries. “As cargo pilots, we are fully aware of the potential dangers associated with the carriage of lithium batteries,” said MEC chairman Captain Scott Stratton. “These pilots’ lives were tragically cut short as they valiantly tried to bring their crippled aircraft back to the ground. Through their actions, they were able to prevent a much larger disaster from occurring. We owe it to them as well as to all of those who fly this nation’s commerce every day, to ensure that regulatory directives are harmonized across the globe and robust enough to preclude future events such as this.”

The GCAA recommended that the Federal Aviation Administration (FAA) and its European counterpart develop better firefighting standards and equipment for cargo planes, with visual warnings about where a fire is located. The FedEx MEC strongly believes that the United States must take a leadership role in protecting aircraft against the possibility of catastrophic fires caused by lithium batteries. The improvement in regulations covering the transportation of large quantities of lithium batteries must proceed immediately in order to begin to eliminate this deadly hazard. “Now is the time for the U.S. government to act to ensure the safety of our skies,” said FedEx Legislative Affairs chairman Captain Fred Eissler. “We will continue to work with our government leaders, dangerous goods regulatory authorities, and our fellow airline pilots to address the safety issues and concerns found in the GCAA report.”

“The FedEx pilots are committed to working with industry and government leaders to minimize the risks associated with the carriage of dangerous goods,” continued Captain Stratton. “The GCAA’s report adds to the building body of evidence that clearly shows much more effort is needed to facilitate negating the risks associated with the carriage of lithium batteries.”

Copyright Photo: Duncan Kirk/AirlinersGallery.com. The first Boeing 767-300F for FedEx Express is being prepared for its first flight at Paine Field near Everett, WA. 767-3S2F N101FE (msn 42706) taxied to the runway yesterday afternoon.

FedEx Express: AG Slide Show

The End of an Era: FedEx Express retires the last Boeing 727 today after 35 years

FedEx Express (Memphis) has replaced and will retire the last Boeing 727 (N481FE) at Memphis today.

The company has just issued this statement:

For 35 years, Boeing 727 aircraft were a reliable workhorse for the world’s largest express transportation company. Today, the venerable 727 narrow-body freighter closes an enduring chapter in aviation history as FedEx becomes the last major carrier to retire the aircraft from service. The retirement is part of the company’s aircraft modernization strategy.

The 727’s domestic mission will conclude at 1:30 p.m. CDT as FedEx aircraft N481FE touches down at the FedEx Express World Hub at Memphis International Airport. Greeting its arrival will be more than 1,000 company executives, air operations team members and other guests who will mark the airplane’s historic last flight with a special ceremony.

A departure ceremony at the FedEx hub in Indianapolis, which has served as the company’s primary base for 727 general maintenance checks, begins the historic farewell flight.

 “For more than three decades, our Boeing 727 fleet was instrumental in our company’s domestic growth,” said David J. Bronczek, president and chief executive officer, FedEx Express. “Today, we are opening a new chapter for company growth and opportunity as we continue to modernize our global fleet with more technologically advanced, fuel efficient, lower emission cargo jets.”

History of the 727 at FedEx

Introduction of this larger, mid-size jet freighter to the FedEx fleet was made possible by deregulation of the airline industry in 1977, giving the upstart express carrier access to more domestic markets and bringing immediate operational efficiencies because of greater payload capabilities. FedEx operated only small Dassault Falcons before the industry was deregulated. An exemption then allowed a company to enter the common carrier business if its payloads were less than 7,500 pounds.

It was January 14, 1978 when then-Federal Express took delivery in Memphis of its first 727 aircraft, which was purchased from Eastern Airlines. On that day, Frederick W. Smith, chairman, president and chief executive officer, FedEx Corporation, told several hundred employees and guests at the delivery event, “Many people look at this airplane and believe that Federal Express has arrived at the end of a long road. This is not the end of anything. It is simply the beginning.”

Early FedEx acquisitions of used 727s from other carriers were followed by new aircraft purchases from Boeing, with the last 727 leaving the manufacturer’s assembly line and being delivered to FedEx in 1984. The express carrier at one point was the world’s largest operator of 727s, with 170 of the aircraft in its fleet at any one time.

Modernization of the FedEx Fleet

FedEx began retiring its 727-200 fleet in 2007 and replacing them with more modern Boeing 757 airplanes. The retirement cycle accelerated under the fleet modernization program that through the last several years included more 757 freighters, as well as new Boeing 777 long-range freighters, which are the biggest in the FedEx fleet and the world’s largest twin-engine cargo aircraft. This fall, FedEx begins taking delivery of new Boeing 767 aircraft to replace its aging MD-10 freighters.

As with the other aircraft types being introduced, the 767s will provide significantly improved reliability and are substantially more fuel-efficient and environmentally friendly than the aircraft they will replace. FedEx is committed to reducing its aircraft carbon emissions 30 percent by the year 2020 under its fleet modernization program. It expects to source at least 30 percent of its jet fuel from alternative fuels by the year 2030.

“As we celebrate our company’s 40th anniversary, we can look back at an aircraft bloodline that has been impressive,” Bronczek said. “From the small Falcons, which served us well when the company was young, to our 727s, to what is now the largest fleet of express cargo aircraft in the world, our transportation capabilities for global customers is unmatched in the industry. Equally impressive are the innovation, technology and environmental benefits of the new aircraft we are adding.”

Continuation of Service

Not only are FedEx 727s being retired, but nearly half of the fleet has been donated coast-to-coast to aviation schools, colleges and local communities in the last several years.

From Anchorage to Austin, from Billings to Buffalo, from Sioux City to Shreveport and many points between, FedEx aircraft donations support school curriculums that are developing the next generation of aviation professionals. The donated aircraft are also being used for training by emergency response teams at local airports and fire departments.

For FedEx pilots like Capt. Chip Groner, who piloted a 727 for about 10 years, closing the door on 727 operations is a turning point not only for FedEx but for the aviation industry.

“The 727 was a mainstay aircraft and one of the most dependable we ever had in our fleet. More importantly, it was the plane that really put FedEx on the map as an overnight express carrier,” the 35-year FedEx crew member said. “It’s the end of an era, but it’s only natural because of changing technology that improves the fuel and operational efficiencies of today’s new aircraft. The 727, for many pilots, will always be the airplane that really brought the airline industry into the jet age.”

Copyright Photo: Bruce Drum/AirlinersGallery.com. Still wearing its Eastern Airlines registration, the pictured Boeing 727-25C N8161G (msn 19717) in the original 1973 Federal Express livery, later became N125FE with FedEx.

FedEx Express: AG Slide Show

Video: The MEM Airport water saluted the last FedEx 727 arrival, operated by ex-Braniff Boeing 727-227 (F) N481FE (msn 21463).

Video: This FedEx Boeing 727 was donated to the University of Alaska’s Aviation Department. It is pictured landing for the last time at Merrill Field’s runway 25 in downtown Anchorage.

FedEx Corporation reports net income of $679 million in the fiscal 4Q and $1.98 billion for the year

FedEx Corporation (FedEx Express) (Memphis) 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.”

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.

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.”

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.

In other news, FedEx Corporation also announced that it has completed the first stage of a strategic acquisition by signing agreements to acquire the businesses operated by its current service provider Supaswift (Pty) Ltd. in five countries in Southern Africa, including South Africa, Malawi, Mozambique, Swaziland and Zambia, and is also in discussions to acquire Supaswift’s businesses in Botswana and Namibia. These acquisitions will operate under the FedEx Express business unit and the transaction is subject to necessary regulatory approvals and customary closing conditions.

Once the acquisition is completed, FedEx Express will have direct access across the seven markets to 39 facilities and will welcome approximately 1,000 of Supaswift’s team members, who will join the ranks of more than 300,000 FedEx team members globally. FedEx Express will then offer a complete suite of FedEx branded export, import and domestic solutions, connecting Southern Africa to more than 220 countries and territories worldwide, enhancing customers’ business flexibility and speed to market.

Copyright Photo: Ken Petersen/AirlinersGallery.com. FedEx has been building up a large Boeing 757 fleet to replace its older Boeing 727s. Formerly operated by Britannia Airways/Thomsonfly/Thomson Airways as G-BYAS, 757-204 (F) N925FD (msn 27238) departs from the Memphis sorting hub.

FedEx Express: AG Slide Show

FedEx accelerates the retirement of 86 aircraft, the last Boeing 727 to be retired on July 1

FedEx Corporation (FedEx Express) (Memphis) announced today it had permanently retired or will accelerate the retirement of 86 aircraft and 308 related engines as it continues to modernize its aircraft fleet and improve the global network of FedEx Express.

The permanent retirement of aircraft and related engines announced today includes:

  • Two Airbus A310-200 aircraft and four related engines;
  • Three Airbus A310-300 aircraft and two related engines; and
  • Five McDonnell Douglas MD-10-10 aircraft and 15 related engines.

The impact of retiring these aircraft, engines and parts resulted in an impairment charge of $100 million recorded in May 2013.

In addition, FedEx will accelerate by several years the retirement of:

  • 47 McDonnell MD-10-10 aircraft and 172 related engines;
  • 13 McDonnell MD-10-30 aircraft and 55 related engines; and
  • 16 Airbus A310-200 aircraft and 60 related engines.

As of July 1, 2013, FedEx Express will complete the final retirement of the Boeing 727-200 fleet.

“We are modernizing our aircraft fleet by retiring older, less-efficient, and less-reliable aircraft and replacing them with modern aircraft to build a fleet with higher reliability and better cost efficiency,” said David J. Bronczek, president and chief executive officer of FedEx Express. “With the planned acquisition of new aircraft and projected slower economic growth than previously forecast, FedEx Express is lowering maintenance costs by aggressively parking and retiring aircraft.”

The impact of accelerating the retirement of aircraft will result in additional year-over-year depreciation expense of $74 million in FY14.

FedEx Express Aircraft Fleet Facts

  • As of February 28, 2013, FedEx Express’s fleet totaled 660 aircraft, including 368 jet aircraft.
  • During the four quarters ended on February 28, 2013, FedEx Express spent $3.8 billion on 1.2 billion gallons of jet fuel.
  • The Boeing 757-200 is significantly more fuel efficient per pound of payload and has 20% additional payload capacity than the Boeing 727 it replaces.
  • The Boeing 767 will provide similar capacity as the MD-10s, with improved reliability, an approximate 30% increase in fuel efficiency and a minimum of a 20% reduction in unit operating costs.
  • The Boeing 767 shares spare parts, tooling and flight simulators with the B757.

Dividend Declaration

The Board of Directors today declared a quarterly cash dividend of $0.15 per share on FedEx Corporation common stock, an increase of $0.01 per share over the previous dividend payment. The dividend is payable on July 1, 2013 to stockholders of record at the close of business on June 17, 2013. FedEx remains committed to paying higher dividends to shareowners in years to come.

Copyright Photo: Bruce Drum/AirlinersGallery.com. The pictured Boeing 727-233 (F) N221FE (msn 20932) was originally delivered as a passenger aircraft to Air Canada as C-GAAA on September 25, 1974.

FedEx: AG Slide Show

FedEx renews its contract with the United States Postal Service

FedEx Corporation (Memphis) has announced that its FedEx Express (Memphis) subsidiary has entered into a new express air transportation contract with the United States Postal Service. The current contract ends in September 2013, and the new contract will begin in October 2013.

Under this seven-year agreement, valued at approximately $10.5 billion, FedEx Express will provide airport-to-airport transportation of USPS Express Mail and Priority Mail within the United States.

Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 777-FS2 N884FD (msn 37137) gracefully climbs away from the Boeing factory at Paine Field near Everett, Washington.

FedEx Express: AG Slide Show

FedEx Express makes a historic Panda delivery to the Toronto Zoo

FedEx Express MD-11F N585FE (94-Panda)(Nose) YYZ (FedEx)(LRW)

FedEx Express (Memphis) has safely delivered two giant pandas from China to the Toronto Zoo following months of preparations and public anticipation.

The giant pandas, breeding pair Er Shun (female) and Da Mao (male), made the journey from Chengdu, China, to the FedEx Express Canadian Hub at Toronto Pearson International Airport, aboard a specially branded MD-11 aircraft donated by FedEx.

The pandas arrived at 10:47 a.m. EDT (March 25) after an 18 hour flight. FedEx Express, the Toronto Zoo, and the Chengdu Research Base of Giant Panda Breeding collaborated extensively to ensure all necessary precautions were taken to provide a safe and comfortable flight for the pandas. Animal care experts were granted special flight privileges to accompany the pandas onboard the aircraft.

Prime Minister Stephen Harper was airside to officially sign for Canada’s receipt of the giant pandas on a FedEx PowerPad handed to him by Lisa Lisson, president of FedEx Express Canada.

“Today is significant for Canadians as it marks an important symbol of trade and diplomacy between our country and China. As the world’s global transportation leader, FedEx understands first-hand the opportunity and potential that comes with strengthened relationships and improved global connectivity—all of which is wrapped into the symbolism of today’s delivery,” said Lisa Lisson, president, FedEx Express Canada. “As excited as we are about facilitating this exchange between Canada and China, I can attest that all our 6,000-strong team of employees, from coast-to-coast, are as eagerly excited about the prospects of a giant panda cub being born on Canadian soil.”

Following the arrival of FedEx Panda Express, Er Shun and Da Mao were transported by two FedEx Express trucks to Toronto Zoo where they will begin a five-year stay before transferring to Calgary. The specially-branded FedEx Express trucks will stay in service throughout the giant pandas’ stay in Toronto, delivering 600 to 900 kilograms of fresh bamboo supplies two-to-three times a week, courtesy of the Memphis Zoo.

As announced by Prime Minister Stephen Harper on February 11, 2012, the cooperative conservation agreement with China marked the first time in more than twenty years that a giant panda has been loaned to a Canadian zoo. The agreement also marked the first time the Chinese government has granted a ten-year loan of breeding giant pandas to any international zoo in the world.

Following a brief but mandatory quarantine, the giant pandas will be on view to the public at a newly-constructed, state-of-the-art giant panda exhibit at the Toronto Zoo sometime in mid-May (exact date to determined). The program will allow the Toronto Zoo to contribute to ongoing international efforts to protect and increase the population of the endangered giant pandas through investments in research and conservation efforts. Currently, conservationists estimate that there are just over 2,000 giant pandas left in the wild.

“We are honoured to have giant pandas, Er Shun and Da Mao, arrive at the Toronto Zoo and look forward to the opportunity of contributing to the survival of this beautiful species for generations to come,” said John Tracogna, CEO, Toronto Zoo. “The Toronto Zoo is thrilled to join the small group of countries and highly respected zoo organizations outside of China that have the conservation and research programs, professional expertise, and facilities to provide excellent care for a breeding pair of pandas.”

FedEx Express has successfully transported a number of giant panda pairs, underscoring the company’s commitment to safely and securely transporting even the world’s most precious cargo:

  • China to Paris, France (2012)
  • China to Edinburgh, Scotland (2011)
  • Washington, D.C., and Atlanta, USA, to China (2010)
  • China to Memphis, USA (2003)
  • China to Washington, D.C., USA (2000)

Copyright Photo: FedEx Express. McDonnell Douglas MD-11F N585FE (msn 48481) had the honor for this historic Panda flight. N585FE touches down at Toronto (Pearson) with the special Panda markings.

FedEx Express: AG Slide Show

FedEx Express to acquire 14 Boeing 757-200s from United Airlines

FedEx Express (Memphis) has agreed to acquire 15 Boeing 757-200s from United Airlines (Chicago) and convert the passenger aircraft to freighters according to this report by Bloomberg. FedEx also secured options for another 16 757-200s. Deliveries will be 2013 through 2015.

Read the full report: CLICK HERE

Copyright Photo: Brian McDonough. Former USAir/US Airways Boeing 757-2B7 (F) N901FD (msn 27122, ex N610AU) now with FedEx as a freighter, completes its final approach into Washington (Dulles).

World Airline News block logoEditor’s “To The Point” Observation: FedEx currently operates 67 Boeing 757-200 converted freighters. The first (the pictured N901FD) was added to the cargo fleet on May 9, 2008. The newer 757s have been replacing the older Boeing 727s. FedEx has 30 727-200Fs still in service so it is likely it will take the full option.

 

 

FedEx Express: AG Slide Show

United Airlines: AG Slide Show

FedEx Corporation reports third quarter operating income of $589 million, down 28% from $813 million last year

FedEx Corporation (FedEx Express) (Memphis) today reported earnings of $1.23 per diluted share for the third quarter ended February 28, excluding business realignment costs totaling $47 million primarily related to the company’s voluntary buyout program for eligible U.S. officers and managing directors. Including this year’s realignment costs, third quarter earnings were $1.13 per diluted share.

Last year’s third quarter earnings were $1.55 per diluted share, excluding a $0.10 per share reversal of a reserve associated with a legal matter at FedEx Express. Including last year’s reserve reversal, earnings were $1.65 per diluted share.

“The third quarter was very challenging due to continued weakness in international air freight markets, pressure on yields due to industry overcapacity and customers selecting less expensive and slower-transit services,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “In response, beginning April 1, FedEx Express will decrease capacity to and from Asia and will aggressively manage traffic flows to place low yielding traffic in lower-cost networks. We are currently assessing how these actions may allow FedEx Express to retire more of its older, less-efficient aircraft. We remain focused on our strategic cost reduction programs, which are ramping up and on track.”

Third Quarter Results

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

• Revenue of $11.0 billion, up 4% from $10.6 billion the previous year

• Operating income of $589 million, down 28% from $813 million last year

• Operating margin of 5.4%, down from 7.7% the previous year

• Net income of $361 million, down 31% from $521 million a year ago

As discussed above, the quarter’s results reflect the decline in profitability at FedEx Express due to the accelerating demand shift toward lower-yielding international services and lower international export yields. The quarter’s results were also negatively impacted by the business realignment costs noted earlier and by fewer operating days in each transportation segment.

Outlook

FedEx projects earnings to be an adjusted $1.90 to $2.10 per diluted share in the fourth quarter and an adjusted $6.00 to $6.20 per diluted share for fiscal 2013 before charges related to the company’s business realignment. Costs of the benefits provided under the voluntary buyout program will be recognized in the period that eligible employees accept their offers, predominantly in the fourth fiscal quarter. Including the third quarter costs, the company now expects the fiscal 2013 pretax cost of the voluntary buyout program to range from approximately $450 million to $550 million in cash expenditures, or $0.89 to $1.09 per diluted share, with some additional costs expected in fiscal 2014. Actual costs will depend on employee acceptance rates. Including the business realignment costs, earnings are expected to be $0.94 to $1.34 per diluted share in the fourth quarter and $4.91 to $5.31 per diluted share for fiscal 2013. This guidance assumes the current market outlook for fuel prices. The capital spending forecast for fiscal 2013 is now $3.6 billion, compared to $3.9 billion in the company’s previous forecast.

In last year’s fourth quarter, the company reported earnings of $1.99 per diluted share, excluding a $0.26 per diluted share non-cash aircraft impairment charge at FedEx Express. Including this charge, earnings were $1.73 per diluted share.

“Our lower-than-expected results for the quarter and reduced full-year earnings outlook were driven by third quarter international revenues declining approximately $100 million versus our guidance primarily due to accelerating customer preference for lower-yielding international services, lower rate per pound and weight per shipment,” said Alan B. Graf Jr., FedEx Corp. executive vice president and chief financial officer. “We expect these international revenue trends to continue. We have other actions under way beyond those already included in our profit improvement program. Some of these additional actions may involve temporarily or permanently grounding aircraft, which could result in asset impairment or other charges in future periods.”

“In early February, a number of officers and managing directors, primarily at FedEx Services and FedEx Express, accepted voluntary buyouts, and on February 15, thousands more team members were notified of their eligibility for the buyout program. This program is one of the first steps in a process that will help FedEx Express achieve necessary cost structure reductions and improved efficiency. In addition to continued profit improvements in the base businesses at FedEx Ground and FedEx Freight, our profit improvement programs are targeting annual profitability improvement at FedEx Express of $1.6 billion by the end of fiscal 2016, from the fiscal year 2013 base business. Collectively, these initiatives are expected to increase margins, improve cash flows and increase our competitiveness,” said Graf.

Stock Repurchase Program Authorization Increase

The FedEx Corp. board of directors has authorized the repurchase of up to 10 million shares of FedEx Corp. common stock. These shares augment the remaining 188 thousand shares authorized for purchase under existing share repurchase programs. It is expected that the additional share authorization will primarily be utilized to offset equity compensation dilution over the next several years. Purchases may be made in the open market and in negotiated or block transactions. FedEx had 317 million shares outstanding as of February 28, 2013.

FedEx Express Segment

For the third quarter, the FedEx Express segment reported:

• Revenue of $6.70 billion, up 2% from last year’s $6.54 billion

• Operating income of $118 million, down 66% from $349 million a year ago

• Operating margin of 1.8%, down from 5.3% the previous year

Revenue increased due to this year’s business acquisitions and growth at FedEx Trade Networks, while core express revenue was constrained by continued demand shift toward lower-yielding international services. U.S. domestic revenue per package grew 1% as higher rate per pound and weight per package were offset by lower fuel surcharges, while average daily package volume increased 1%. Higher growth in international deferred services continued, with FedEx International Economy® volume growing 12%, while FedEx International Priority® volume increased 2% during the quarter. International export revenue per package fell 3% due to the demand shift to lower-yielding international services, lower rates and lower fuel surcharges.

Operating income and margin were significantly lower due to the demand shift to lower-yielding international services, the prior year reversal of a $66 million reserve associated with a legal matter, the negative impact of one fewer operating day, higher pension cost and increased depreciation expense. Costs associated with the business realignment program also negatively impacted operating results by $34 million.

Copyright Photo: Brian McDonough. Airbus A300F4-605R N689FE (msn 875) lands at Baltimore/Washington.

FedEx Express: AG Slide Show

 

Empire Airlines to operate the ATR 42-500s for Hawaiian Airlines

Empire Airlines (Idaho)-35 Years logo

Empire Airlines (Idaho) (3rd) (Coeur d’Alene) will operate the newly-acquired ATR 42-500s for Hawaiian Airlines (Honolulu) according to this report by HNL Rarebirds. Hawaiian has signed a three-year MOU for Empire to operate and maintain the new type. Both N801HC and N804HC are currently at Empire’s base awaiting delivery to the islands.

Empire currently operates the type for FedEx Express as a FedEx Feeder. The company started operations in May 1977 as Clearwater Flying Service before changing to the current name in January 1983.

Read the full report: CLICK HERE

Hawaiian Airlines: AG Slide Show

Empire Airlines current route map:

Please click on the map to expand.

Please click on the map to expand.

FedEx’s 2Q net income slips to $438 million, down 12% from last year’s $497 million, orders four Boeing 767-300 freighters

FedEx Corporation (FedEx Express) (Memphis) today reported earnings of $1.39 per diluted share for the second quarter ended November 30, compared to $1.57 per share last year. Superstorm Sandy impacted the quarter’s results by $0.11 per diluted share due to reduced shipment volumes and incremental operating costs.

Second Quarter Results:

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

• Revenue of $11.1 billion, up 5% from $10.6 billion the previous year

• Operating income of $718 million, down 8% from $780 million last year

• Operating margin of 6.5%, down from 7.4% the previous year

• Net income of $438 million, down 12% from last year’s $497 million

The results of the quarter also reflect, primarily at FedEx Express, the net year-over-year negative impact from the timing lag that exists between when fuel prices change and indexed fuel surcharges automatically adjust.

FedEx Express Segment:

For the second quarter, the FedEx Express segment reported:

• Revenue of $6.86 billion, up 4% from last year’s $6.58 billion

• Operating income of $230 million, down 33% from $342 million a year ago

• Operating margin of 3.4%, down from 5.2% the previous year

Revenue increased primarily due to this year’s business acquisitions and growth at FedEx Trade Networks, as core express revenue growth was constrained by global economic conditions and the impact of Superstorm Sandy.

U.S. domestic revenue per package grew 1% as higher rate per pound was partially offset by lower fuel surcharges. U.S. domestic average daily package volume declined 2%. FedEx international export average daily package volume grew 6% driven by increases in FedEx International Economy®(IE) from Europe and Asia and by increases in FedEx International Priority® (IP) from Asia. Higher growth in international deferred services continued, with IE volume growing 14%, while IP volume increased 3% during the quarter. International export revenue per package fell 4% due to the demand shift toward lower-yielding international services and lower fuel surcharges.

Operating income and margin were lower due to the demand shift toward lower-yielding international services, the negative year-over-year impact of net fuel changes, increased depreciation expense, the effects of Superstorm Sandy and higher pension costs. These were partially offset by the favorable impact of cost containment actions.

FedEx Express has entered into an agreement to purchase four additional 767-300 freighters as part of the company’s continued fleet modernization efforts. This brings the total 767-300 orders to 50, with deliveries beginning in fiscal 2014. In concert with this commitment, two 777 freighter deliveries were deferred from fiscal 2015 to fiscal 2016 in order to better match capacity timing to global demand.

Copyright Photo: Brian McDonough. Boeing 777-FS2 N853FD (msn 37724) makes a fuel stop at Anchorage.

FedEx Express: AG Slide Show

FedEx Corporation reports 1Q net income of $459 million, down 1%

FedEx Corporation (FedEx Express) (Memphis) reported earnings of $1.45 per diluted share for the fiscal first quarter ended August 31, compared to $1.46 per share last year.

FedEx Corporation reported the following consolidated results for the first quarter:

• Revenue of $10.79 billion, up 3% from $10.52 billion the previous year

• Operating income of $742 million, up 1% from $737 million last year

• Operating margin of 6.9%, down from 7.0% the previous year

• Net income of $459 million, down 1% from last year’s $464 million

During the quarter, improved FedEx Freight results and the continued strong performance at FedEx Ground were more than offset by lower demand for priority services at FedEx Express.

Copyright Photo: Nick Dean.

FedEx Express: 

FedEx will have to compete with UPS for the U.S. Postal Service contract

FedEx Express (Memphis) has been informed by the U.S. Postal Service it will have to bid for a new postal contract that is expiring in September 2013 according to this report by Reuters. This will open the door for UPS-United Parcel Service (Atlanta) to bid on the contract. According to Reuters, “FedEx is the postal service’s top contractor, earning an estimated $1.5 billion in revenue in fiscal 2011, according to Husch Blackwell LLP’s postal service contracting practice group.”

Read the full report: CLICK HERE

Copyright Photo: Fernandez Imaging.

FedEx Express: 

FedEx Corporation completes the acquisition of French express transportation company, TATEX

FedEx Corporation (FedEx Express) (Memphis) announced today that it has completed the acquisition of TATEX, a leading French business-to-business express transportation company. This transaction represents the latest step in the company’s strategy to sustainably grow in Europe.

The addition of the TATEX business to the FedEx network will deliver an excellent extension to the service portfolio of both companies and will provide customers with more comprehensive international and domestic service options. The acquisition will give FedEx access to a nationwide domestic ground network which carries 19 million shipments and produces approximately EUR 150 million in revenues annually. In return, TATEX customers will gain direct access to the global FedEx network.

FedEx has been steadily broadening its European network and today’s announcement follows the recent acquisition of Opek, a Polish courier company with 1,200 employees and a network of 44 stations. In fiscal year 2012, FedEx opened 38 new stations across Europe, launched five Boeing 757-200 freighter flights on intra-European routes, and another Boeing 777F freighter (pictured) for long-haul routes—bringing the total number of Boeing 777Fs operating FedEx routes in and out of Europe to four.

FedEx entered the French market in 1985. Since then the company has been continuously expanding its range of international shipping services in the market and today employs over 3,000 team members in the country. In 2009, the company expanded its EMEA hub at Paris’ Roissy Charles de Gaulle airport, making it the biggest FedEx Express hub outside the U.S.

Copyright Photo: Nick Dean. The pictured brand new Boeing 777-FS2 N864FD (msn 37735) at Everett (Payne Field) joined the FedEx fleet on May 15, 2012.

FedEx Express: 

FedEx Express plans to acquire 19 additional Boeing 767-300F freighters and convert four 777 freighters

FedEx Express, a wholly owned subsidiary of FedEx Corporation (Memphis), today (June 29) agreed to purchase 19 additional Boeing 767-300F freighters from The Boeing Company to continue to improve the efficiency and technology of the FedEx air fleet.

As part of the agreement, Boeing has agreed to convert four Boeing 777 freighters — two in fiscal 2016 and two in fiscal 2017 — to 767 equivalent purchase value. FedEx Express currently operates 19 long-range 777 freighters and now is committed to purchase an additional 24 777s.

The 19 767s will be delivered from fiscal 2015 to 2019 and replace current McDonnell Douglas MD-10Fs and A310-200 freighters. The impact to capital spending in fiscal 2013 and fiscal 2014 is immaterial, and estimated fiscal 2013 capital spending remains at $3.9 billion. The 767s are substantially more fuel efficient and reliable than the aircraft they will replace.

The 767s will provide similar capacity as the MD-10s, with an approximate 30 percent increase in fuel efficiency and a reduction in unit operating costs of more than 20 percent. They also increase efficiency by sharing spare parts, tooling and flight simulators with the Boeing 757-200s which are part of the FedEx air fleet.

Today’s action is in addition to a FedEx Express agreement with Boeing announced in December 2011 to purchase 27 new 767s for delivery between fiscal 2014 and 2018 and delay delivery of a number of 777s.

In June, FedEx announced the permanent retirement from service of 18 Airbus A310 aircraft and 26 related engines, as well as six McDonnell Douglas MD-10 aircraft and 17 related engines, bringing the total to 50 aircraft to be retired by the end of fiscal 2013.

Image: Boeing.

FedEx: 

FedEx to retire 18 Airbus A310-200 and six McDonnell Douglas MD-10 freighters

FedEx Express (FedEx Corporation) (Memphis) has announced  its decision to permanently retire from service 18 Airbus A310-200 aircraft and 26 related engines, as well as six McDonnell Douglas (Boeing) MD-10-10 aircraft and 17 related engines. The majority of these aircraft are currently parked and not in revenue service. As a consequence, a non-cash impairment charge of $134 million ($84 million, net of tax, or $0.26 per diluted share) was recorded in the fourth quarter. The decision to permanently retire these aircraft will better align the U.S. domestic air network capacity of FedEx Express to match current and anticipated shipment volumes.

These permanent retirements are in addition to five Boeing 727-200 aircraft retired in the fourth quarter of fiscal 2012 and the planned fiscal 2013 retirement of 21 Boeing 727 aircraft, which will be fully depreciated.

FedEx Express continues to modernize its aircraft fleet by adding newer aircraft that are more reliable, fuel efficient and technologically advanced, and retiring older, less-efficient aircraft. In response to the company’s new fleet plans, FedEx Express is shortening the depreciable lives of the following aircraft and related engines: 31 additional Boeing MD-10-10s, 18 additional Airbus A310s, four Boeing 727s and one Boeing MD-10-30. This will accelerate the retirement of these aircraft to align with the delivery schedule for replacement Boeing 767-300 and Boeing 757-200 aircraft. The accelerated depreciation on these aircraft is expected to total $196 million over the next three fiscal years with a partial offset from the avoidance of depreciation related to the retirements (see table):

Total Impact on Fleet Depreciation – Decrease/(Increase)
(in millions)
FY13
FY14
FY15
FY16
FY17-FY25
Total
Depreciation Avoided Due to Retirements
$
24
$
22
$
18
$
16
$
54
$
134
Accelerated

Depreciation Impact
(69
)
(70
)
(57
)
10
186
Net Impact on Depreciation
($45
)
($48
)
($39
)
$
26
$
240
$
134

FedEx Express Aircraft Fleet Facts:

  • As of February 29, 2012, FedEx Express’s fleet totaled 688 aircraft, including 397 jet aircraft.
  • In fiscal 2011, FedEx Express spent $3.2 billion on 1.2 billion gallons of jet fuel.
  • The Boeing 757 is significantly more fuel efficient per pound of payload and has 20% additional payload capacity than the Boeing 727 it replaces.
  • The Boeing 767 will provide similar capacity as the MD-10s, with improved reliability, an approximate 30% increase in fuel efficiency and a minimum of a 20% reduction in unit operating costs.
  • The Boeing 767 shares spare parts, tooling and flight simulators with the Boeing 757.

Top Copyright Photo: Bruce Drum.

Bottom Copyright Photo: TMK Photography.

FedEx Express: 

FedEx Corporation reports net income of $521 million in the fiscal third quarter

FedEx Corporation (Memphis) reported earnings of $1.65 per diluted share for the third quarter ended February 29, which includes a $0.10 per share reversal of a reserve associated with a legal matter at FedEx Express. Last year’s third quarter earnings were $0.73 per diluted share, which included $0.08 per diluted share in costs related to the combination of the company’s FedEx Freight and FedEx National LTL operations. Excluding these one-time items, earnings were $1.55 per diluted share in the third quarter, compared to $0.81 per diluted share a year ago.

FedEx Corporation reported the following consolidated results for the third quarter:

• Revenue of $10.56 billion, up 9% from $9.66 billion the previous year

• Operating income of $813 million, up 107% from $393 million last year

• Operating margin of 7.7%, up from 4.1% the previous year

• Net income of $521 million, up 126% from $231 million a year ago

Operating income improved due to the continued strong performance of FedEx Ground driven by higher yields and volumes, as well as significantly improved results at FedEx Freight. Operating income also reflects the positive year-over-year impact, predominately at FedEx Express, of a benefit from the timing lag that exists between when fuel prices change and when indexed fuel surcharges automatically adjust. The company also benefitted from a lower tax rate and mild winter weather.

FedEx projects earnings to be $1.75 to $2.00 per diluted share in the fourth quarter and an adjusted $6.35 to $6.60 per diluted share for fiscal 2012. This guidance assumes the current market outlook for fuel prices and moderate growth in the global economy. Including the FedEx Express legal reserve reversal, earnings are expected to be $6.43 to $6.68 per diluted share for fiscal 2012. The company reported earnings of $1.75 per diluted share in last year’s fourth quarter. The capital spending forecast for fiscal 2012 remains $4.2 billion.

For the third quarter, the FedEx Express segment reported:

• Revenue of $6.54 billion, up 8% from last year’s $6.05 billion

• Operating income of $349 million, up 96% from $178 million a year ago

• Operating margin of 5.3%, up from 2.9% the previous year

U.S. domestic revenue per package grew 9% due to higher rate per pound and fuel surcharges, while average daily package volume decreased 4%. International priority (IP) revenue per package grew 5% due to higher fuel surcharges and package weights, while average daily package volume decreased 1%. IP freight average daily pounds increased 4% with revenue per pound up 2% due to higher fuel surcharges. In total, IP average daily package and freight pounds increased 2% and revenue increased 6% year-over-year.

Operating income and margin improved in the quarter, reflecting the year-over-year benefit of the fuel surcharge timing lag and the reversal of a $66 million reserve associated with a legal matter. One additional operating day benefitted this year’s results, while prior year results were negatively impacted by severe winter weather.

Copyright Photo: Brian McDonough.

FedEx Slide Show: CLICK HERE

Rock Center’s feature on FedEx and interview with Fred Smith

FedEx (Memphis) was one of the feature sections last night on NBC’s Rock Center:

Watch the Video: CLICK HERE

Copyright Photo: Nick Dean.

FedEx Photo Gallery: CLICK HERE

 

Chinese Pandas touch down in Paris on the “FedEx Panda Express”

FedEx Express (Memphis) today announced the safe arrival of two three-year-old giant pandas, Huan Huan and Yuan Zi, from the Chengdu Research Base of Giant Panda Breeding in China to Paris Charles de Gaulle International Airport in France.

Working in conjunction with ZooParc de Beauval, the specially-chartered Boeing 777-FS2 N892FD (msn 38707), known as the “FedEx Panda Express”, landed in Paris on January 15 at noon local time, 6 a.m. Eastern time. The arrival of these special animals marks the first time in 10 years that giant pandas will reside in France.

The nonstop flight was chartered especially for the VIPs—Very Important Pandas—and the pair travelled in custom-built enclosures provided by FedEx Express. In-flight, Huan Huan and Yuan Zi spent the journey snoozing and eating bamboo. They were accompanied by a Chinese veterinarian and animal handler as well as the managing director from ZooParc de Beauval to look after their needs throughout the journey.

During the flight, the pandas were in the safe hands of seasoned pilots Captain Paul Cassel, Captain Tom Jenkins and Captain John Hunt, who all have extensive experience in transporting some of the world’s most precious cargo, ranging from white rhinos to penguins.

The pandas continued their journey in FedEx Express vehicles to deliver them to their new home at ZooParc de Beauval. French authorities were also on hand to ensure a smooth ride. Upon arrival, the pandas will reside together in the new magnificent Chinese area in a specially-built giant panda enclosure at ZooParc de Beauval.

Copyright Photo: FedEx Express. The “FedEx Panda Express”, a specially-chartered FedEx Express Boeing 777F, prepares to depart from Chengdu Airport in China for Roissy-Charles de Gaulle Airport in France with two three-year-old giant pandas on board. The pandas, Huan Huan and Yuan Zi, will reside at ZooParc de Beauval near Paris.

FedEx Express Slide Show: CLICK HERE

China Pandas bound for France via FedEx Express

FedEx Express (Memphis) and the ZooParc de Beauval today announced the loan of two giant pandas from China to ZooParc de Beauval in France.

FedEx Express is providing logistical services to transport the giant pandas on Sunday, January 15, subject to final regulatory approval. Working in conjunction with the ZooParc de Beauval and the Chinese Association of Zoological Gardens (CAZG) in China, FedEx Express will fly three-year-old female Huan Huan and three-year-old male panda Yuan Zi non-stop from Chengdu Airport in China to Roissy-Charles de Gaulle Airport in France aboard a specially-chartered and panda-decaled Boeing 777F flight known as the “FedEx Panda Express.” Upon arrival in France, the pandas will be transported by FedEx Express on a specially-decaled vehicle from the airport to ZooParc de Beauval.
The arrival of Huan Huan and Yuan Zi will mark the first time in more than 10 years that giant pandas will reside in France.

The FedEx Express logistical operation includes ground and air transportation and the provision of two custom-built transport containers for the pandas. By deploying the Boeing 777F aircraft to transport the endangered species, FedEx Express is providing a direct flight from China to France, ensuring the pandas the shortest flight time. The fuel-efficient Boeing 777F aircraft is the world’s largest twin-engine cargo aircraft and the newest addition to the FedEx Express global fleet.

FedEx Express, ZooParc de Beauval, and the Chengdu Research Base of Giant Panda Breeding have collaborated extensively to ensure all necessary precautions have been taken to provide a safe and comfortable flight for the pandas. Animal care experts have been granted special flight privileges to accompany the pandas onboard the aircraft. Upon arrival, the pandas will reside in ZooParc de Beauval’s specially-built giant panda enclosures.

Currently, conservationists estimate that only 1,600 pandas remain in the wild. Both Huan Huan and Yuan Zi are part of global giant panda conservation programs designed to increase the panda population.
Due to security regulations, the departure and arrival events of the pandas will be closed to the general public, but people can follow the pandas’ journey at http://blog.fedex.com/panda-express-france or http://news.fedex.com/PandaExpress2012.

FedEx Express has a long history of transporting rare and delicate cargo. In December 2011, FedEx Express transported Tian Tian, a female panda and Yang Guang, a male panda to Edinburgh Zoo in the United Kingdom. In February 2010, FedEx Express transported Tai Shan, a male panda born at the National Zoo in Washington D.C., and Mei Lan, a male panda born at Zoo Atlanta, back to China. In 2003, FedEx Express transported two giant pandas from China to the Memphis Zoo. In 2000, FedEx Express transported Tai Shan’s parents from China to Washington D.C.’s National Zoo.

Exotic cargo transported by FedEx Express has included polar bears, white tigers, elephants, penguins, mountain lions, gorillas, eagles and even a 13-foot tiger shark used in filming the movie “Jaws.”

Other unusual international cargo transported by FedEx includes a windmill from Denmark, the Ryder Cup and a vintage Jaguar Le Mans automobile worth more than £1 million.

Copyright Photo: Jim Fulton. Please click on the photo for additional information on the special Boeing 777F.

FedEx Slide Show: CLICK HERE

FedEx pilots respond to release of pilot fatigue rule

FedEx Express’ (Memphis) pilots have officially issued this response to the FAA’s final regulations concerning pilot fatigue:

“The FedEx Master Executive Council (MEC), the FedEx branch of the Air Line Pilots Association, International (ALPA), issued the following press release concerning the Federal Aviation Administration’s (FAA) final regulations regarding airline pilot flight- and duty-time limitations and minimum rest requirements:

The release yesterday of the Federal Aviation Administration’s long-awaited science-based fatigue rule for flight and duty time was a political failure. The rule completely ignores the safety of cargo pilots and instead lets operators choose to ignore the safety improvements that will benefit pilots carrying passengers.

Fatigue affects all pilots. Over the first century of powered flight, countless accidents trace pilot fatigue as a contributing factor. “It is outrageous that the new rule does not include cargo. Cargo aircraft operate into the same airspace, into the same crowded airports surrounded by millions of homes and face the same challenges every other professional aviator encounters on a 24-hour basis,” said FedEx MEC Chairman Scott Stratton.

An NTSB spokesman summed it up well: “A tired pilot is a tired pilot, whether there are 10 paying customers on board or 100, whether the payload is passengers or pallets.” As the FAA said in its draft, “Fatigue threatens aviation safety because it increases the risk of pilot error that could lead to an accident.” This is particularly a concern for crews that fly “on the back side of the clock.” Ironically, the back side of the clock is exactly where the majority of cargo pilots find themselves operating aircraft.

The families of the pilots and passengers who perished in the Colgan Air Flight 3407 operating as Continental Connection accident brought the issue of pilot fatigue to the forefront. Initially, Congress and the FAA acted to address pilot fatigue. However, cargo carrier lobbyists were able to use a protracted backroom process to convince federal policy-makers that somehow cargo pilots and their families were less worthy of fatigue protection. The FedEx MEC is outraged at the casual dismissal of cargo pilots and their families. Industry commenters asserted that, “while a passenger-operation accident can result in numerous fatalities, an all-cargo accident would consist primarily of property damage.” The FAA apparently placed some value on this absurd statement and coldly used it to justify the subordination of cargo families. “This nonsense indicates the character of the political process that produced this rule,” said Captain Stratton. “It is clear that special interest money and politics won over safety today, but we will not sit idly by and allow another 50 years of ambivalence to take hold. Our work to achieve a single level of safety as envisioned by the founding members of the Air Line Pilots Association, International shall continue. There can be no “Scheduling with Safety” without “One Level of Safety.”

Copyright Photo: Nick Dean.

FedEx Slide Show: CLICK HERE

FedEx Express orders 27 new Boeing 767-300Fs to replace MD-10s

FedEx Express (FedEx Corporation) (Memphis) announced it has signed an agreement with the Boeing Company to purchase 27 new 767-300F aircraft, with three arriving in fiscal 2014 and six per year in fiscal 2015-2018. The 767s were selected as the best choice to begin replacing FedEx Express’s MD-10 aircraft, some of which are more than 40 years old. The 767s will provide similar capacity as the MD-10s, with improved reliability, an approximate 30% increase in fuel efficiency and a minimum of a 20% reduction in unit operating costs.

FedEx Express is also delaying the delivery of 11 777F aircraft, two of which will be deferred from fiscal 2013, five from fiscal 2014 and one per year in fiscal 2015-2018, to better balance air network capacity to demand. As a result of these deferrals, FedEx Express will place into service four 777s in fiscal 2013 and two in fiscal 2014. The company is also exercising two 777 options for aircraft to be delivered at the end of the delivery schedule.

On the financial side, FedEx Corporation reported net income of $497 million, up 76% from $283 million a year ago for its fiscal second quarter.

The corporation reported earnings of $1.57 per diluted share for the second quarter ended November 30. Last year’s second quarter earnings were $0.89 per diluted share, which included $0.27 per diluted share in costs related to the combination of the company’s FedEx Freight and FedEx National LTL operations and a reserve associated with a legal matter at FedEx Express. Excluding those one-time charges, earnings were $1.16 per diluted share a year ago.

Copyright Photo: TMK Photography.

FedEx Express Slide Show: CLICK HERE

FedEx Express may order 30 Boeing 767-300 ER freighters

FedEx Express (Memphis) is reportedly near firming up an order for around 30 new Boeing 767-300 ER freighters according to this report by the Seattle Times. The order could be announced next week. If correct, this would be a new type for the company and the order would keep the 767 production line going.

Read the full report: CLICK HERE

FedEx Express Slide Show: CLICK HERE

Chinese Pandas touch down in Scotland on the “FedEx Panda Express”

FedEx Express (Memphis) today (December 4) announced the safe arrival of two giant pandas, Tian Tian (aka Sweetie), an eight year-old female panda, and Yang Guang (aka Sunshine), an eight year-old male panda from Chengdu’s Bifengxia Panda Base to Edinburgh International Airport in Scotland.

Working in conjunction with the Royal Zoological Society of Scotland (RZSS) and the China Wildlife Conservation Association (CWCA) in China, the specially-chartered Boeing 777F flight known as the “FedEx Panda Express” landed in Scotland on December 4 at approximately 1 p.m. (1300) local time. The arrival of the pandas marks the first time in more than 17 years that giant pandas will reside in the UK.

The nonstop flight was chartered especially for the VIPs—Very Important Pandas—and the pair traveled in custom-built enclosures provided by FedEx Express. In-flight meals of bamboo, apples, carrots, a special panda cake and mineral water were served to the pandas, who spent the journey eating snacks and snoozing. Tian Tian and Yang Guang were accompanied by a veterinarian and two animal handlers from Edinburgh Zoo and the Bifengxia Panda Base to look after their needs throughout the journey.

FedEx Express donated its logistical services for the transportation, providing an expert team to ensure the rare animals’ safety. During the flight, the pandas were in the safe hands of seasoned management pilots, all of whom have extensive experience in transporting some of the world’s most precious cargo, ranging from white rhinos to penguins.

The pandas continued their journey in a specially-decaled FedEx Express vehicle to deliver them to their new home at Edinburgh Zoo. The Lothian and Borders Police Force were also on hand to ensure a smooth ride. Upon arrival, the pandas will reside together in Edinburgh Zoo’s specially-built giant panda enclosure.

FedEx Express has a long history of transporting rare and delicate cargo. In February 2010, FedEx Express transported Tai Shan, a male panda born at the National Zoo in Washington, D.C., U.S., and Mei Lan, a male panda born at Zoo Atlanta in Atlanta, Georgia, U.S., back to China. In 2003, FedEx Express transported two giant pandas from China to the Memphis Zoo in Memphis, Tennessee, U.S. In 2000, FedEx Express transported Tai Shan’s parents from China to Washington, D.C.’s National Zoo.

Exotic cargo transported by FedEx Express has included polar bears, white tigers, elephants, penguins, mountain lions, gorillas, eagles and even a 13-foot tiger shark used in filming the movie “Jaws”.

Copyright Photo: FedEx Express. The FedEx Panda Express, a specially-decaled Boeing 777-FS2 registered as N892FD (msn 38707), awaits departure from Chengdu, China for Edinburgh, Scotland with giant pandas Tian Tian and Yang Guang on board. N892FD is the second FedEx 777F to wear special Panda decals (the first was N850FD).

FedEx Slide Show: CLICK HERE

FedEx reports a $464 million net profit in the fiscal first quarter

FedEx Corporation (Memphis) reported earnings of $1.46 per diluted share for the fiscal first quarter ending on August 31, compared to $1.20 per diluted share a year ago, a year-over-year increase of 22%.

FedEx Corporation reported the following consolidated results for the first quarter:

• Revenue of $10.52 billion, up 11% from $9.46 billion the previous year.

• Operating income of $737 million, up 17% from $628 million last year.

• Operating margin of 7.0%, up from 6.6% the previous year.

• Net income of $464 million, up 22% from last year’s $380 million.

FedEx Slide Show: CLICK HERE

Copyright Photo: Brian McDonough.

FedEx considers an order for 50 new freighters, considers the Airbus A330-200F and the Boeing 767-300F

FedEx Express (Memphis) is considering an order for 50 new freighters and is considering both the Airbus A330-200F and the Boeing 767-300F according to this report by Reuters.

Read the full report: CLICK HERE

FedEx Slide Show: CLICK HERE

Copyright Photo: FedEx has been adding new Boeing 777F freighters. Please click on the photo for additional information.

FedEx donates $5 million and a MD-10 to ORBIS International

FedEx Corporation (Memphis) and ORBIS International, a leading global organization dedicated to saving sight worldwide, today kicked off a North American Good Will Tour in Los Angeles with the announcement of a new 5-year, $5.375 million commitment in the form of cash and in-kind contributions from FedEx. In addition, FedEx Express will donate an MD-10 cargo aircraft to ORBIS to be the third-generation Flying Eye Hospital. After Los Angeles, the Flying Eye Hospital will also visit Burlington, VT, Dallas Fort/Worth, Memphis, TN, and Toronto and Ottawa, Canada between August and November to raise public awareness of the need to eliminate avoidable blindness.

The new Flying Eye Hospital, the world’s only airplane with a fully functioning state-of-the-art eye hospital on board, will be built on an MD-10-30 freighter aircraft and will utilize a modular design concept. It is the first time such modular units have been designed for an aircraft, and building them presents an enormous engineering challenge to meet the demanding technical requirements for both aviation and medical certification. MMIC (Mobile Medical International Corporation) of St. Johnsbury, Vt. is under contract to design and manufacture the state-of-the-art modules which will be carried by the MD-10-30 freighter.

The Flying Eye Hospital is a unique tool that brings dedicated eye care professionals from across the world to developing countries to provide two to three weeks of training and state-of-the-art surgical demonstrations. ORBIS volunteer doctors impart to local doctors, nurses, biomedical engineers and technicians the skills necessary to provide high-quality eye care to their communities that will prevent and treat avoidable causes of blindness such as cataracts, glaucoma and diabetic retinopathy. Tragically, there are 39 million blind people worldwide; 80% of cases are preventable and treatable. Ninety percent of these people live in developing countries where there is a severe lack of proper medical care. Since 1982, ORBIS has conducted programs in more than 85 countries, impacting more than 15 million lives.

FedEx has supported ORBIS for 29 years, almost three decades, providing millions of dollars of support in cash and in-kind contributions. Today’s donation builds on a $5.5 million, five-year commitment that FedEx made to ORBIS in 2006. In addition, FedEx and its team members donate the unparalleled FedEx Express global network and aviation expertise to help the Flying Eye Hospital fly. FedEx Express pilots volunteer to fly the current ORBIS DC-10 to many of its medical programs and train other volunteer pilots; FedEx Express mechanics provide maintenance support; team members around the world volunteer as part of the ORBIS humanitarian team as interpreters, welcoming and escorting patients to and from their surgeries and checkups, canvassing neighborhoods and assisting with patient screenings. FedEx Express provides complimentary transportation services to move critically needed medical supplies to ORBIS clinics worldwide; makes the FedEx Express flight training simulator available to train volunteer pilots and manages the cost and performance of the annual safety checks for ORBIS’ flagship Flying Eye Hospital.

On Saturday, August 6, FedEx and ORBIS will celebrate their historic relationship with a FedEx Friends and Family Day. The event will feature a fun-filled day of activities for FedEx Express team members and their families, capped by ORBIS’ “Pull for Sight,” where teams compete to be the fastest in a tug of war against the 227-ton Flying Eye Hospital. FedEx Express aircraft and privately-owned WWII aircraft will also be on display.

FedEx Slide Show: CLICK HERE

Copyright Photo: TMK Photography.

FedEx Corporation reports higher fiscal fourth quarter earnings, $1.5 billion net profit for the year

FedEx Corporation (Memphis) reported earnings of $1.75 per diluted share for the fourth quarter ended May 31, compared to $1.33 per diluted share a year ago, a year-over-year increase of 32%.

FedEx Corporation reported the following consolidated results for the fiscal fourth quarter:

Revenue of $10.55 billion, up 12% from $9.43 billion the previous year

Operating income of $888 million, up 28% from $696 million last year

Operating margin of 8.4%, up from 7.4% the previous year

Net income of $558 million, up 33% from last year’s $419 million

Revenue and earnings increased due to continued strong yield improvement in all transportation segments and volume growth of ground and international express shipments. FedEx Freight’s return to profitability also improved operating results.

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

Revenue of $39.3 billion, up 13% from $34.7 billion the previous year

Operating income of $2.38 billion, up 19% from $2.00 billion last year

Net income of $1.45 billion, up 23% from last year’s $1.18 billion

Adjusted earnings per share of $4.90, up from $3.76 per share a year ago.

FedEx Express Slide Show: CLICK HERE

Copyright Photo: Brian McDonough. Please click on the photo for information about this special one-time logojet.

FedEx Express announces new 777F service to South Korea

FedEx Express (Memphis) today (March 28) announced the launch of a new dedicated Boeing 777F route connecting the FedEx World Hub in Memphis, Tennessee to South Korea with four nonstop flights a week. Because the new route combines faster service with larger cargo capacity, FedEx can now deliver documents and packages from the U.S., Canada and select markets in Latin America to Seoul, South Korea in two to three business days.

FedEx now also offers the fastest delivery of priority freight to Seoul from the U.S., Canada and select markets in Latin America.

In 2010, US$38.8 billion of goods were exported from the U.S. to South Korea, a significant 35% rise year–on-year1. FedEx has strategically placed the 777F into service to South Korea in order to meet growing demands across global markets and offer practical solutions for increased shipping needs.

FedEx Express is the first U.S.-based, global, all-cargo airline to add the 777F to its fleet. As part of its commitment to environmental sustainability, FedEx has been expanding its fleet of 777F aircraft because of its fuel efficiency and lower carbon emissions.

Copyright Photo: Brian McDonough. Please click on the photo for the additional information.

FedEx Corporation reports a fiscal 3Q net profit of $231 million

FedEx Corporation (Memphis) reported earnings of $0.73 per diluted share for the fiscal third quarter ended on February 28, 2011. Excluding costs related to the previously announced combination of the company’s FedEx Freight and FedEx National LTL operations, third quarter earnings were $0.81 per diluted share, compared to $0.76 per diluted share a year ago.

The corporation reported net income of $231 million, down 3% from $239 million a year ago.

According to the company, FedEx projects earnings to be $1.66 to $1.83 per diluted share in the fourth quarter and an adjusted $4.83 to $5.00 per diluted share for fiscal 2011. The company’s forecast assumes the current market outlook for fuel prices and continued moderate growth in the global economy. Earnings could be affected by the impact of the ongoing political turmoil in the Middle East and North Africa on fuel prices and the economy. Also, the near-term impact of the earthquake and tsunami in Japan on operational costs, shipping patterns and the global economy is currently uncertain. The annual guidance excludes FedEx Freight combination costs and a second quarter legal reserve. Including costs from the FedEx Freight combination and the legal reserve, earnings are expected to be $4.49 to $4.66 per diluted share for fiscal 2011. The company reported earnings of $1.33 per diluted share in last year’s fourth quarter. The capital spending forecast for fiscal 2011 remains $3.5 billion.

Copyright Photo: Brian McDonough. Please click on the photo for the details concerning this unique logojet.

Boeing celebrates two years of 777 freighter operations

Boeing (Chicago, Seattle, Wichita and Charleston) is celebrating the second anniversary of the Boeing 777 freighter in service.

The growing fleet of 777 freighters has flown approximately 120,000 hours and boasts a daily utilization rate of 11.34 hours. Fleet schedule reliability is at 99.37 percent, which means the freighter has a near-perfect record of on-time takeoff and landings. Eighty-three have been ordered, and 39 freighters now are in service with nine airlines.

FedEx Express is the largest 777 freighter operator with a fleet of 11 currently in operation, and another airplane just delivered. An additional 13 777 freighters remain in Boeing’s backlog for FedEx.

Copyright Photo: Nick Dean. Please click on the photo for additional information.

FedEx Corporation reports a 3Q net profit of $283 million

FedEx Corporation (Memphis) reported earnings of $0.89 per diluted share for the second quarter ended November 30. Excluding certain charges described below, second quarter earnings were $1.16 per diluted share, compared to $1.10 per diluted share a year ago.

Reported results for the current quarter include costs related to the previously announced combination of the company’s FedEx Freight and FedEx National LTL operations and a reserve associated with a legal matter at FedEx Express, which together negatively impacted earnings by a net $0.27 per diluted share. Last year’s second quarter results included a benefit from plan design changes to a self-insurance program at FedEx Express, which increased earnings by a net $0.05 per diluted share.

The corporation reported net income of $283 million, down 18% from $345 million a year ago.

Copyright Photo: Brian McDonough. Please click on photo for additional information.

FedEx opens a new Cologne/Bonn cargo hub

FedEx Express, a subsidiary of the FedEx Corporation (Memphis) joined with Cologne-Bonn Airport in Germany today (October 27) to inaugurate the new FedEx Central and Eastern Europe hub.

The Cologne hub is the second FedEx Express hub to be solar-powered and the fifth solar facility in operation within FedEx Corporation.

The hub in Cologne is one of the most modern FedEx hubs in the world. Its fully-automated sorting system can process up to 18,000 packages and documents per hour. The roof features the largest FedEx Express solar power installation worldwide and represents one of the largest rooftop solar installations in North Rhine-Westphalia, with an area of 16,000 square meters, producing about 800,000 kilowatt hours per year.

 

FedEx orders two more Boeing 777F freighters

FedEx Express (Memphis) has ordered two more Boeing 777F freighters.

Copyright Photo: Nick Dean. Departing in the early morning misty light at Everett (Paine Field) is new Boeing 777-FS2 N851FD (msn 37722).

FedEx Corporation reports higher fourth quarter and full year earnings

FedEx Corporation (Memphis) reported fourth quarter net income of $419 million, up from last year’s net loss of $876 million.

For the fiscal full year, net income of $1.18 billion was reported, up from last year’s $98 million.

Copyright Photo: Brian McDonough. McDonnell Douglas MD-11 (F) N586FE (msn 48487) is seen at the Anchorage hub.

FedEx exceeds expectations in 3Q, net income up 146% to $239 million

Please click on the AG icon for a direct link to the FedEx photo gallery.

FedEx Corporation (Memphis) today reported the following consolidated results for the third quarter exceeding expectations:

  • Revenue of $8.70 billion, up 7% from $8.14 billion a year ago
  • Operating income of $416 million, up 129% from $182 million last year
  • Operating margin of 4.8%, up from 2.2% the previous year
  • Net income of $239 million, up 146% from last year’s $97 million

Read the full report:

finance.yahoo.com/news/FedEx-Corp-Third-Quarter-Net-bw-3484552874.html?x=0&.v=1

Close-up of FedEx Panda Express special sticker

Copyright Photo: Brian McDonough.

FedEx Panda Express departs Washington Dulles at 1205 today bound for Chengdu

Copyright Photo: Brian McDonough.

Air France to sell two new Boeing 777F freighters to FedEx Express

Please click on the AG icon for a direct link to the Air France photo gallery.

Air France (Paris) has signed a letter of intent to sell two new Boeing 777F freighters to FedEx Corporation (Memphis), a spokesman for Air France told Dow Jones Newswires. The new 777Fs have not yet been delivered to AF and the sale will not affect the current 777F fleet.

Full report:

www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201001290841dowjonesdjonline000267&title=air-france-to-sell-2-new-777-boeing-cargo-aircraft-to-fedex

Coming Soon: A new FedEx 777F “Panda Express”

Please click on the AG icon for a direct link to the FedEx photo gallery.

FedEx Express (Memphis) is donating its logistical services to transport two giant pandas from the United States to China on February 4, 2010. Working in conjunction with the Smithsonian’s National Zoo in Washington, D.C. and Zoo Atlanta, FedEx Express will fly the pandas non-stop from Washington’s Dulles International Airport to Chengdu, China.

Tai Shan, a 4-and-a-half-year-old male panda born at the National Zoo, and Mei Lan, a 3-year-old female panda born at Zoo Atlanta, will travel onboard a custom-decaled FedEx Express 777 Freighter (777F) – known as the “FedEx Panda Express.”

FedEx Express will fly Mei Lan from Atlanta to Washington, D.C., where she will join Tai Shan in preparation for the trans-Atlantic flight. Onboard the 777F aircraft – which is solely dedicated to the pandas’ journey – Tai Shan and Mei Lan will travel in two custom-built transport containers provided by FedEx Express. The pandas will depart Washington, D.C. late morning on February 4 and arrive in Chengdu late afternoon on February 5, approximately 14 ½ hours between take-off and landing.

Boeing 777-FS2 N850FD (msn 37721) has been selected as the aircraft to wear the special “Panda Express” markings.



FedEx introduces the Boeing 777F on the Memphis-Shanghai route

FedEx Express (Memphis) earlier this month introduced the new Boeing 777F on the MEM-Shanghai route.

Press release:

finance.yahoo.com/news/FedEx-Express-Enhances-bw-2736879690.html?x=0&.v=1

FedEx Corporation reports 2Q net profit of $345 million, down 30%

FedEx Corporation (FedEx Express) (Memphis) reported net income of $345 million in the fiscal second quarter ending on November 30. This represents a decline of 30 percent compared with the same period a year ago.

Press release:

finance.yahoo.com/news/FedEx-Corp-Reports-Second-bw-3626574951.html?x=0&.v=1

Copyright Photo: TMK Photography.

UPS and FedEx spar in Congress over FedEx labor rules

News link:

www.reuters.com/article/marketsNews/idCNN2727264420091028?rpc=44

FedEx Express takes delivery of first Boeing 777F

Copyright Photo: Royal S. King.  Please click on photo for more photos.

Copyright Photo: Royal S. King. Please click on photo for more photos.

FedEx Express (Memphis) yesterday (September 22) took delivery of its first Boeing 777F freighter (777-FS2, N850FD, msn 37721). The 777F will fly between the United States and Asia. The 777F will be capable of flying 5,800 nautical miles, 2,100 nm further than the McDonnell Douglas MD-11F it will replace.

Press release:

finance.yahoo.com/news/FedEx-Express-to-Take-bw-73758991.html?x=0&.v=1

FedEx’s fiscal 1Q profit drops by 53 percent

Copyright Photo: Michael B. Ing.  Please click on photo for more photos.

Copyright Photo: Michael B. Ing. Please click on photo for more photos.

FedEx Corporation (FedEx Express) (Memphis) reported fiscal first quarter (ending on August 31) net earnings of $181 million, representing a drop of 53 percent.

Press release:

finance.yahoo.com/news/FedEx-Corp-Reports-First-bw-2798246774.html?x=0&.v=1

Follow

Get every new post delivered to your Inbox.

Join 2,005 other followers

%d bloggers like this: