Tag Archives: DC-10-10

FedEx Corporation reports net income of $580 million, up 53%, for the 3Q

FedEx Corporation (FedEx Express) (Memphis) reported earnings of $2.01 per diluted share for the third quarter ended February 28, compared to $1.23 per share last year.

Third Quarter Results

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

• Revenue of $11.7 billion, up 4% from $11.3 billion the previous year

• Operating income of $962 million, up 50% from $641 million last year

• Operating margin of 8.2%, up from 5.7% the previous year

• Net income of $580 million, up 53% from last year’s $378 million

Operating results improved due to volume and base yield growth in all three transportation segments, a significant net benefit from fuel, benefits from profit improvement program initiatives, a lower year-over-year weather impact and reduced pension expense. These improvements were partially offset by higher variable incentive compensation accruals.

Share repurchases had a $0.11 year-over-year positive impact on third quarter earnings per diluted share.

Outlook

FedEx projects earnings to be $8.80 to $8.95 per diluted share for fiscal 2015. This outlook assumes continued moderate global economic growth. The capital spending forecast for fiscal 2015 remains $4.2 billion.

“We expect continued revenue and earnings growth this year, driven by ongoing improvements in all of our transportation segments,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “Variable incentive compensation accruals will continue to increase as our financial performance improves, and we expect to deliver record fourth quarter and fiscal year earnings.”

FedEx Express Segment

For the third quarter, the FedEx Express segment reported:

• Revenue of $6.66 billion, compared to last year’s $6.67 billion

• Operating income of $384 million, up 129% from $168 million a year ago

• Operating margin of 5.8%, up from 2.5% the previous year

Revenue was essentially flat, as lower fuel surcharges and unfavorable currency exchange rates more than offset volume and base yield growth. U.S. domestic package volume grew by 4%, including 5% growth in overnight box. U.S. domestic revenue per package decreased 2% due to lower fuel surcharges, partially offset by higher base rates. FedEx International Economy volume grew 4%, while FedEx International Priority volume was flat. International export revenue per package decreased 4%, as lower fuel surcharges and unfavorable currency exchange rates were partially offset by favorable service mix and higher rates.

Operating results were higher as increased base revenue, a significant net benefit from fuel and a lower year-over-year weather impact all contributed to the quarter. In addition, the company continued to benefit from profit improvement program initiatives. Partially offsetting these favorable factors were increased variable incentive compensation accruals and aircraft maintenance expenses.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. FedEx Express McDonnell Douglas MD-10-10F (DC-10-10F) N389FE (msn 46623) climbs away from Los Angeles International Airport.

FedEx Express aircraft slide show: AG Airline Slide Show

AG WAN-Powered by AG

FedEx pilots to conduct informational picketing today

FedEx Express‘ (Memphis) 4,200 pilots, represented by the Air Line Pilots Association, Int’l (ALPA), will conduct informational picketing on Tuesday, September 23, in three cities to show, according to the union, “their continuing frustration with ongoing contract negotiations and their resolute support of their Negotiating Committee.”

Informational picketing will take place on Tuesday, September 23, at the following locations and times (all times are local):

Anchorage
Outside FedEx sorting facility at Ted Stevens
Anchorage Int’l Airport, corner of Postmark
Drive and Rockwell Avenue
11:00 a.m. to 11:45 a.m.

Los Angeles
Maguire Gardens (South Flower Street and
West 5th Street)
11:00 a.m. to 11:45 a.m.

Memphis
Outside FedEx Air Operations Center (3131
Democrat Road)
Noon to 12:30 p.m.

According to the union, “FedEx Express and its pilot group came to a historic collective bargaining agreement in 2011. What made this agreement historic was the commitment to continue bargaining so as to foster a more efficient negotiating climate when formal negotiations commenced in 2013 despite having achieved a contract. “There was a real opportunity to fix some difficult problems with well-developed long-term solutions and without the pressure that comes with traditional bargaining. Unfortunately, management chose a different route,” said Captain Scott Stratton, chairman of the ALPA FedEx Master Executive Council. “We should have had a new contract by now, but instead we have spent too much time mired in a ‘traditional’ bargaining situation that does not promote good labor-management relations. In spite of management’s actions, the pilots remain committed to achieving a responsible negotiated agreement that recognizes our contributions to FedEx’s remarkable profitability.”

Copyright Photo: Ken Petersen/AirlinersGallery.com. McDonnell Douglas MD-10-10F (DC-10-10F) N554FE (msn 46708) lands at Raleigh/Durham.

FedEx Express: AG Slide Show

Former airline McDonnell Douglas DC-10-10 continues to serve as a flying hospital

ORBIS FLYING EYE HOSPITAL

The Orbis Flying Eye Hospital utilizes this McDonnell Douglas DC-10-10 as a flying hospital. The former wide-boday airline previously served Laker Airways (as G-BELO), American Trans Air (N183AT), Cal Air International (G-GCAL), Novair (G-GCAL) before going to Project Orbis as N220AU (msn 46501) on November 27, 1991. The venerable jetliner has a new look livery (above).

Orbis International (New York) is an international non-profit non-governmental organization (NGO) dedicated to saving sight worldwide according to Wikipedia. Orbis programs focus on the prevention of blindness and the treatment of blinding eye diseases in developing countries. Since 1982, ORBIS capacity-building programs have enhanced the skills of 325,000 eye care personnel and provided medical and optical treatment to more than 23.3 million people in 92 countries.

Orbis logo

The charity issued this statement:

The Orbis Flying Eye Hospital (FEH) is visiting Jinan for the second time to conduct an intensive and comprehensive training and skills exchange program aimed at strengthening ophthalmic services in Shandong Province. Alongside its longtime sponsor, Alcon, the global leader in eye care, the Orbis program will focus on providing intense training in the areas of cataract, glaucoma, medical and surgical retina.

China accounts for about 18 percent of the world’s blind and out of the estimated 1 million children suffering from blindness in Asia, approximately 400,000 live in China. To address the growing need for pediatric eye care in the country and in support of the long-term Orbis pediatric project in the region, the FEH program will also offer intense subspecialty training in pediatric strabismus.

The Jinan program marks the 39th visit of the Flying Eye Hospital in China and this program will continue to help raise public attention on the eye care conditions and challenges faced in the country. The needs of the eye care communities and the challenges they face vary across provinces, but at the national level, the major causes of blindness reflect global trends and include: cataract, glaucoma and corneal disease.

“Orbis has had a long history of working in China and our training programs have helped improve the quality of ophthalmic services and raise awareness around eye care conditions throughout the country,” said Dr. Ahmed Gomaa, the Orbis Flying Eye Hospital Medical Director. “Orbis is grateful for the generous support of our longtime sponsor Alcon, and we look forward to working together to eliminate avoidable blindness and deliver the highest standards of training.”

In partnership with the Shandong Red Cross Eye Hospital and Shandong Medical College, the program will provide Chinese eye care professionals including optometrists, nurses, anesthesiologists and biomedical engineers with continued medical education through workshop, lectures and hands-on training. In addition to ophthalmologists, the program will also provide practical and clinical training to residents who receive little hands-on training as part of their standard residency curriculum.

“Alcon’s partnership with Orbis of more than three decades is grounded in our shared vision of providing access to quality eye care around the world,” said Bettina Maunz, President of the Alcon Foundation. “The Jinan program gives us the opportunity to partner with Orbis to help deliver sustainable eye care solutions that can make a long-term impact and help prevent and treat blindness in China.”

As part of a global initiative to combat preventable and treatable blindness, and in support of Orbis’s skills exchange program approach, Alcon has been a longtime sponsor of the Flying Eye Hospital programs and donates medical equipment, pharmaceuticals and supplies. In addition, Alcon biomedical engineers volunteer their time on Orbis programs to provide technical assistance by working side-by-side with local technicians and share their skills on managing and maintaining the much needed ophthalmic equipment.

About Orbis

Orbis prevents and treats blindness through hands-on training, public health education, improved access to quality eye care, advocacy and partnerships with local health care organizations. By building long-term capabilities, Orbis helps its partner institutions take action to reach a state where they can provide, on their own, quality eye care services that are affordable, accessible, and sustainable.

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.