FDX another good quarter

[CaptainMark]

FedEx Reports Strong Revenue and Earnings Growth

Operating Margins Improve Across All Transportation Segments MEMPHIS, Tenn., March 22, 2006 ... FedEx Corporation (NYSE: FDX) today reported earnings of $1.38 per diluted share for the third quarter ended February 28, compared to $1.03 per diluted share a year ago, a year-over-year increase of 34%.
FedEx Corp. reported the following consolidated results for the third quarter:

• Revenue of $8.00 billion, up 9% from $7.34 billion the previous year
• Operating income of $713 million, up 29% from $552 million a year ago
• Operating margin of 8.9%, up from last year's 7.5%
• Net income of $428 million, up 35% from $317 million the previous year

"FedEx continues to deliver strong results by providing outstanding customer service around the world and by crisply executing our strategy of balancing volume and revenue growth with cost containment to improve our margins," said Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp. "With our broad portfolio of services, FedEx is uniquely positioned to take advantage of continued growth in the global economy."
Total combined average daily package volume at FedEx Ground and FedEx Express grew 4% year over year for the quarter, led by improved ground and international express package growth. Yield management remains a top priority across all transportation services. During the quarter, continued yield management actions in FedEx Express U.S. deferred services boosted yields while resulting in lower U.S. deferred express volume.
FedEx ranked second in FORTUNE magazine's most recent "America's Most Admired Companies" list and fourth in its "World's Most Admired Companies" list. FedEx continues to place in the FORTUNE "100 Best Companies to Work For" list and has the largest employee base on that list.
Outlook
FedEx expects fourth quarter earnings to be $1.65 to $1.80 per diluted share. The company's earnings guidance for the year is now $5.66 to $5.81 per diluted share compared to previous guidance of $5.45 to $5.70 per diluted share, which includes the net effect of a $0.15 per share lease accounting charge in the first quarter. Excluding the impact of the lease accounting charge, earnings for the year are expected to be $5.81 to $5.96 per diluted share. The capital spending forecast for fiscal 2006 is $2.6 billion.
"Earnings for our third quarter were better than forecasted due to a stronger than expected holiday peak season for FedEx Ground, improved productivity in our transportation segments, lower than expected fuel costs, deferral of advertising and promotion costs to the fourth quarter and a lower effective tax rate," said Alan B. Graf, Jr., executive vice president and chief financial officer. "Our earnings guidance for the fourth quarter, which assumes continued economic growth, reflects a more normal expense trend."

 

[USNFDX]

Listened in to the conference call. One of the analysts asked about pilot negotiations. Either Fred or Dave Bronzack replied they were pleased with negotiations and though they would be concluded "very soon"

Yeah right....

I was pleased someone asked the question!

 

[Laughing_Jakal]

Pilot Costs

Even if the pilots got everything they are asking for, with this growth and revenue, the total cost of pilots as a percentage of revenue and income would be less than that in 1998. I guess someone is waiting for the growth to make the total new contract a smaller percentage of total revenue so that they can award someone a bonus for "decreasing" pilot costs.

 

[T45Flyer]

Wow, $428 Million, thats some serious bling!

 

[SWA/FO]

Wow, I posted Southwest Airlines 4th Qtr results and I got jumped like I was walking down the street in Jalalabad, Afghanistan holding cartoon drawings of Muhammad.

Where is all the outrage! How dare you. Oh, how the mighty will fall.......You will get yours Fed Ex guys!

Where is the love?

*good job Fed Ex guys...

 

[m80drvr]

SWA/FO:
Wow, I posted Southwest Airlines 4th Qtr results and I got jumped like I was walking down the street in Jalalabad, Afghanistan holding cartoon drawings of Muhammad.

Where is all the outrage! How dare you. Oh, how the mighty will fall.......You will get yours Fed Ex guys!

Where is the love?



That would be because you are such a condescending idiot that even your own pilots on this board won't stick up for you. It's called karma.

Flame away

MD

 

[PurpleTail]

Wow, $428 Million, thats some serious bling!

And that was just for the QUARTER!

Now, if could get EVERYONE to just fly their schedule (nothing more) maybe we could see a little bit of that in our own pocket, maybe the new bid would come out a little sooner.

It is time the company shows a little appreciation (and recoginition) to the crewforce who is lapping the globe daily, to the guys hub turning it night after night and to the out-n-back groups by sharing some of that good fortune. We make it, they spend it.

Its time we all suck it up in the short term for real, long term progress. These are great times for the company and the pilots should be paid accordingly! If we don't set the bar for the industry who will?

Show up prepared, rested and ready for work. Fly your schedule 100% and NOT 1% more. Your are bending over backwards and going the extra mile, what is the company doing for you?

2 YEARS IS TOO LONG!

 

[Echopapa]

That would be because you are such a condescending idiot that even your own pilots on this won't stick up for you. It's called karma.

Flame away

MD

I don't know SWA/FO from Adam but that was a hilarious slam. Nice.

 

[TheMissingLink]

Just wait till someone starts up an LCC cargo airline. It's inevitable. There are no safe flying jobs anymore.

 

[PurpleTail]

Just wait till someone starts up an LCC cargo airline. It's inevitable. There are no safe flying jobs anymore.

Why do people make such idiotic statements like this? Moving people opposed to boxes are not the same thing, it may seem logical but isn't not. It is an entirely different infrustructure.

 

[Echopapa]

Just wait till someone starts up an LCC cargo airline. It's inevitable. There are no safe flying jobs anymore.

Uhhh.....That comment is soo completely ill informed I don't even know where to begin.....

I guess Ill start with the obvious...there are LCC cargo airlines....Lets see...World, Kitty Hawk, Evergreen, Polar, capital (I think)...just off the top of my head.

And...those LCC cargo outfits have been around for years and don't effectively compete for our business. UPS is the only air carrier in the last 15 years that has been able to make a run at this business....and they are by no means a LCC.

If you are worried about price send it USPS. That way it might get there...or not....on Tuesday, or Wednesday, or Thursday...or the next month...maybe. Generally same with the above LCC carriers.

People who send by FedEx do so because of reliability. Companies use FedEx as part of their just in time delivery scheds. They pay a premium to send via FedEx because of the reliability...which makes the threat of a LCC cargo carrier a non factor. Our current slogan is "relax its FedEx"....not..."FedEx...it's cheap"

The other difference between a large cargo operation and an airline is the infrastructure required. You can start an airline with 20 aircraft (JB) flying between a select few major cities and selling tickets on the internet.

If you want to start a overnight delivery business...your first hurdle is that you essentially need to cover the entire US. That means INFRASTRUCTURE..and a lot of it. UPS did it because it had a lot of it inplace already. They also had a TON of cash to dump into startup.

The other obvious difference is that the airlines don't pick the passengers up at their homes and drop them off at their destination. It takes an amazing additional infrastructure to make this happen...drivers, vans, sort facilities, loaders.......and on and on.

 

[Mr Zog]

Listened in to the conference call. One of the analysts asked about pilot negotiations. Either Fred or Dave Bronzack replied they were pleased with negotiations and though they would be concluded "very soon"

Yeah right....

I was pleased someone asked the question!

Did not get a chance to listen to the conference call yet. But if that is true then that can be used to our advantage. If negotiations drag on until peak or any negative publicity concerning the negotiations, analysts will be giving the IR department at FedEx an earful. Plus I think the analysts covering FedEx would not take kindly to being "misinformed" concerning negotiations during a conference call. Could be costly to our share price, maybe even worth a few downgrades.

 

[skykid]

That would be because you are such a condescending idiot that even your own pilots on this won't stick up for you. It's called karma.

My thoughts exactly!

Just wait till someone starts up an LCC cargo airline. It's inevitable.

Actually I'm starting one up. I'm going to cherry pick some of FedEx's operation, starting with Grand Forks - Peoria. Hey TheMissingLink, you ought to invest with me - it can't miss!

 

[stonewall]

I tried to start up my own cargo airline....my slogan was "Greater Richmond on time!" Got no love. Maybe Fred is on to something with this overnight crap.

 

[SWA/FO]

It is time the company shows a little appreciation (and recoginition) to the crewforce who is lapping the globe daily, to the guys hub turning it night after night and to the out-n-back groups by sharing some of that good fortune. We make it, they spend it.

I thought you guys flew during the day?

Show up prepared, rested and ready for work. Fly your schedule 100% and NOT 1% more. Your are bending over backwards and going the extra mile, what is the company doing for you?

Stable employment, good benefits & Day time flying.

 

[SWA/FO]

Hey MD80DIC,

Guess you didn't fully quote me, did you.

*good job Fed Ex guys...

H y p o c r i t e... My co-workers don't like to rock the boat, I do. Don't fool yourself, my following is growing, lots of SWA/FO fans out there.
I am a H E R O.

 

[CaptainMark]

Hey MD80DIC,

Guess you didn't fully quote me, did you.



H y p o c r i t e... My co-workers don't like to rock the boat, I do. Don't fool yourself, my following is growing, lots of SWA/FO fans out there.
I am a H E R O.

hey hero...when you post stuff like this for swa you put a line in there bragging about it....i did not..but now that you brought it up...8 BILLION is a little different than a measley 80 million( but that is good for the pax side of things) easy hero...just joking your doing fine...

 

[Sluggo_63]

Because

Wow, I posted Southwest Airlines 4th Qtr results and I got jumped like I was walking down the street in Jalalabad, Afghanistan holding cartoon drawings of Muhammad.

Where is all the outrage! How dare you. Oh, how the mighty will fall.......You will get yours Fed Ex guys!

Where is the love?

*good job Fed Ex guys...

Because you started your thread with, "86 million bucks...baby! :beer:"
That rubbed people the wrong way. Capt Mark just posted the news. Not trying to rub anyone's nose in the numbers... just the story.

Sluggo

 

[active_herk]

I thought you guys flew during the day?



Stable employment, good benefits & Day time flying.

Actully, we fly at all hours, day and night. Your comment about flying during the day is idiotic. Of course we fly during the day, and at night as well.

Regarding the stable employment and such. Yes, it is true we get all that, but when you compare our pay to inflation, we are actually LOSING money every year. I guess you are ok with that. May I ask at what point we should try and get some of that back? Besides, we are fighting for issues other than pay. With what is going on in the industry, doesn't it make sense that we should try and strenghthen our contract language with regards to scope, retirement and insurance? We also need to work out some scheduling issues...despite all our "Day time flying", there is some pretty nasty stuff out there as well. But yes... we are just greedy pilots, thanks for playing into managements hands.

 

[canyonblue]

That would be because you are such a condescending idiot that even your own pilots on this board won't stick up for you. It's called karma.

Flame away

MD

I'd stick up for him. He at least brags about SWA so much that he loves working there. Most of the bragging some of you do is about how much you get to stay away from FedEx. Do what you love, but love what you do.

 

[SWA/FO]

I'd say you guys are sensitive types....:bawling: Long sorts might be getting to all of you.

But yes... we are just greedy pilots, thanks for playing into managements hands.

Doesn't look like I typed that anywhere? I can't find it. The question was "what has management done for you lately"

Did you guys end up with any Fed Ex stock? Looks like that could have been a sweet deal.

Because you started your thread with, "86 million bucks...baby! :beer:"
That rubbed people the wrong way. Capt Mark just posted the news. Not trying to rub anyone's nose in the numbers... just the story.

Sluggo

Yeah, I can see how that would make lots of people very very upset. Actually, I wonder how it would make any Fed Ex pilots mad, since their company counts profits in the billions. I guess you guys had to speak up for everybody else. You know everyone that was to shaken from the letters B A B Y to type a response to me. You guys dilivered when others couldn't. Seems as if you guys really are not happy there making all your cash $$, that you constantly bring up over and over again.

 

[hoya saxa]

I'd say you guys are sensitive types....:bawling: Long sorts might be getting to all of you.

Actually, SWA/FO, I generally find you pretty amusing. Kind of in the hyperactive-kid-who-needs-to-up-his-ritalin-dosage way, but amusing nonetheless. Nothing wrong with being proud of your job and stirring the pot.

Now back to the original thread, I, too, am waiting with bated breath to see what this progress Fred et alibi are referring to... Maybe they're just taking Jack's word for it.

hoya

 

[CaptainMark]

hey swafo..you must be in between one of your 9 legs today..glad they gave u a break...don't work to hard...pace yourself...you always end up on the fedex boards...do u want a sponsor? fly safe

 

[SWA/FO]

This is not the CARGO board. You need to be on the CARGO board.

Oh, now its 9 legs a day? I don't care if it was 10 legs a day - we get paid for every leg we do.

No need for a sponsor. thanks.

Actually, SWA/FO, I generally find you pretty amusing. Kind of in the hyperactive-kid-who-needs-to-up-his-ritalin-dosage way, but amusing nonetheless. Nothing wrong with being proud of your job and stirring the pot.

Now back to the original thread, I, too, am waiting with bated breath to see what this progress Fred et alibi are referring to... Maybe they're just taking Jack's word for it.

hoya

Hey who is Jack? You guys better off with ALPA then your old inhouse union? Is this the first contact ALPA is negotiating for you guys?

 

[Sluggo_63]

Yeah, I can see how that would make lots of people very very upset. Actually, I wonder how it would make any Fed Ex pilots mad, since their company counts profits in the billions. I guess you guys had to speak up for everybody else. You know everyone that was to shaken from the letters B A B Y to type a response to me. You guys dilivered when others couldn't. Seems as if you guys really are not happy there making all your cash $$, that you constantly bring up over and over again.

I hate to admit it, but I'm kind of a SWA/FO pseudo-fan. But I also have friends at other majors who are facing much trouble in their lives ahead. The two of us (you and I) were fortunate enough to end up at airlines which are doing well. I just think that sometimes a little humility goes a long way. Having said that, don't go changing... this message board wouldn't be the same without 'ya.

Sluggo