-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, b3fFsTUYHtpNcgN6UrtgyEXfj5n96pMSsSPsCKXPTb+SvZEITRVJiANUEOaSU3UM 3KyvuwNzUx1j11tznjWxgA== 0000950103-94-001915.txt : 19940315 0000950103-94-001915.hdr.sgml : 19940315 ACCESSION NUMBER: 0000950103-94-001915 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940311 ITEM INFORMATION: 5 ITEM INFORMATION: 7 FILED AS OF DATE: 19940314 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FEDERAL EXPRESS CORP CENTRAL INDEX KEY: 0000230211 STANDARD INDUSTRIAL CLASSIFICATION: 4513 IRS NUMBER: 710427007 STATE OF INCORPORATION: DE FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 8-K SEC ACT: 34 SEC FILE NUMBER: 001-07806 FILM NUMBER: 94515800 BUSINESS ADDRESS: STREET 1: 2005 CORPORATE AVENUE CITY: MEMPHIS STATE: TN ZIP: 38132 BUSINESS PHONE: (901)-395-3382 MAIL ADDRESS: STREET 1: 2005 CORPORATE AVENUE CITY: MEMPHIS STATE: TN ZIP: 38132 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report : March 11, 1994 (Date of earliest event reported) FEDERAL EXPRESS CORPORATION (Exact name of registrant as specified in its charter) Delaware (State of Incorporation) 1-7806 71-0427007 (Commission File Number) (IRS Employer Identification No.) 2005 Corporate Avenue, Memphis, Tennessee 38132 (Address of principal executive offices) Registrant's Telephone Number, including area code: (901) 369-3600 ITEM 5. OTHER EVENTS. On March 11, 1994, Federal Express Corporation (the "Registrant") announced its financial results for the fiscal quarter ended February 28, 1994 by the press release attached as Exhibit 20.1 to this report and incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. 20.1 Registrant's press release, dated March 11, 1994. Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FEDERAL EXPRESS CORPORATION By: /s/ GRAHAM R. SMITH --------------------------- Graham R. Smith Vice President & Controller Dated: March 14, 1994 EXHIBIT INDEX EXHIBIT DESCRIPTION OF EXHIBIT 20.1 Registrant's press release, dated March 11, 1994. EX-20.1 2 EXHIBIT 20.1 (Federal Express Letterhead) FEDERAL EXPRESS CORPORATION THIRD QUARTER FISCAL 1994 FINANCIAL RESULTS FOR IMMEDIATE RELEASE MEMPHIS, March 11, 1994 ... Federal Express Corporation today reported net income for the quarter ended February 28, of $31.2 million or $0.55 per share, compared to net income of $8.5 million or $0.15 in last year's third quarter. Revenues for the quarter were $2,077.4 million , up 7% year-over-year from $1,939.8 million. Operating income was $85.3 million, compared to last year's $58.3 million and pretax income was $57.7 million, compared to $16.9 million last year. Non-operating income included a pre-tax gain of $10.9 million from the sale of several 727-100 aircraft and engines during the quarter. The company also reported an international operating loss for the quarter of $18.3 million, on international revenues of $539.3 million, compared to an operating loss of $61.3 million on revenues of $513.7 million in last year's third quarter. U.S. domestic operating profit was $103.6 million, compared to $119.6 million last year. U.S. domestic revenues increased 8% to $1,538.1 million, from $1,426.1 million during the same period a year ago. Chairman and Chief Executive Officer Frederick W. Smith commented, "The reduction of our international operating loss in this quarter was again the primary factor in our year-over-year earnings improvement. The repositioning of many of our international flights on March 1, 1993, reduced the capacity available for non-time-definite air freight and improved our delivery times for express packages. This schedule change has provided lower, year-over-year, international expenses for the last four quarters. Also, we had continued strong volume growth in our International Priority service, which was up 15% over last year's third quarter. International Priority package yields remain stable, contributing to high incremental profit margins on our largely fixed-cost international air system." With respect to the company's U.S. domestic operations, Chief Financial Officer Alan B. Graf, Jr. said, "During the quarter, we suffered the combined effects of lower than anticipated package volume during the last week of December and higher operating costs due in part to the Los Angeles earthquake in January and several severe snowstorms in the eastern U.S. Consequently, our U.S. domestic operating income fell below last year's level." "However, our U.S. operations did achieve productivity increases, improved healthcare claims experience, double-digit package volume growth and benefited from lower fuel prices," Graf continued. "In the absence of pricing flexibility in today's U.S. express market, we will continue to aggressively pursue cost reductions through technological and operational improvements." ### Contact: Tom Martin 901-395-3490 or Shirlee Finley 901-395-3463 FEDERAL EXPRESS CORPORATION FINANCIAL HIGHLIGHTS THIRD QUARTER FISCAL 1994 (In thousands, except earnings per share and operating data) Three Months Nine Months Ended Ended February 28 February 28 ---------------------- --------------------- FINANCIAL RESULTS 1994 1993 1994 1993 ---- ---- ---- ---- Revenues $2,077,414 $1,939,781 $6,214,664 $5,769,391 Operating Income 85,317 58,321 336,942 240,700 Pretax Income 57,717 16,875 229,091 107,610 Provision for Income Taxes 26,550 8,387 105,382 53,573 Income Before Cumulative Effect of Change in Accounting Principle 31,167 8,488 123,709 54,037 Cumulative Effect of Change in Accounting for Postretirement Benefits, net of tax -- -- -- (55,943) ---------- ---------- --------- ---------- Net Income (Loss) $31,167 $8,488 $123,709 ($1,906) ======= ====== ======== ======== Earnings (Loss) Per Share: Before Cumulative Effect of Change in Accounting Principle $0.55 $0.15 $2.22 $0.99 Cumulative Effect of Change in Accounting Principle -- -- -- (1.03) ---------- ---------- --------- ---------- Earnings (Loss) Per Share $0.55 $0.15 $2.22 ($0.04) ========== ========== ========= ========== Common and Common Equivalent Shares 56,445 55,117 55,827 54,562 OPERATING DATA Operating Weekdays 64 62 192 190 U.S. Domestic Packages (000) 117,373 102,920 333,849 296,524 International Packages (000) 8,318 6,997 24,577 21,320 ---------- ---------- --------- ---------- Total Package Volume (000) 125,691 109,917 358,426 317,844 Avg. Revenue Per U.S. Domestic Package $12.79 $13.28 $13.25 $13.52 Avg. Revenue Per International Package $39.14 $38.67 $38.56 $38.03 Average Revenue Per Package $14.53 $14.90 $14.99 $15.16 Average Revenue Per Pound $2.45 $2.56 $2.52 $2.61 Average Pounds Per Package 5.9 5.8 6.0 5.8 International Air Freight Lbs. (millions) 104.9 128.4 343.8 407.7 Average Revenue Per Freight Pound $1.04 $1.04 $1.07 $1.10 Note: As previously reported, fiscal year 1993 first, second and third quarter results were restated in the fourth quarter of fiscal 1993 for the adoption of an accounting standard (FAS 106) that requires current period accrual of expense related to future postretirement health care benefits. The accounting change added $3.8 million to the third quarter operating expense reported last year ($0.04 per share, after tax). Final Monthly Volume February 1994 For Immediate Release - --------------------- Memphis, March 11 --- Federal Express Corporation announced today that average daily volume of express packages and documents for February 1994 increased approximately 14% compared to February 1993. Details are shown in the table below. FISCAL YEAR-TO-DATE FEBRUARY (9 MONTHS) 1994 1993 FY 1994 FY 1993 ---- ---- ------- ------- Total Package Volume (000) 39,489 34,502 358,426 317,844 Operating Weekdays 20 20 192 190 Average Daily Package Volume: Priority Overnight 898,850 809,200 855,594 791,426 Standard Overnight 469,200 401,550 432,817 384,400 Economy Two-Day 468,950 395,700 447,990 382,658 U.S. Express Freight (OFS/F-2) 2,500 1,900 2,396 2,168 International Priority 134,950 116,750 128,005 112,211 --------- --------- --------- --------- TOTAL 1,974,450 1,725,100 1,866,802 1,672,863 --------- --------- --------- --------- Percent Change in Daily Package Volume 14.5% 11.6% International Air Freight (millions of pounds) 35.3 41.0 343.8 407.7 Contact: Tom Martin 901/395-3490 or Shirley Finley 901/395-3463 -----END PRIVACY-ENHANCED MESSAGE-----