Goooooo Fedex!!! Earnings are in!

[PurpleMember]

Show me the money!!!!!

FedEx Corp. Reports Record Fourth Quarter Revenue and Earnings

Double-digit Earnings Growth Expected in Fiscal 2006

MEMPHIS, Tenn., June 23, 2005 ... FedEx Corporation (NYSE: FDX) today reported earnings of $1.46 per diluted share for the fourth quarter ended May 31, compared to $1.36 per diluted share a year ago.

"Our strong performance is a result of an effective strategy of cross-selling the full portfolio of FedEx services and delivering outstanding customer service," said Frederick W. Smith, chairman, president and chief executive officer. "Our strategy is working well and we continue to innovate to bring more value to our customers worldwide. We see continued steady economic growth, both in the U.S. and in international markets, across many sectors. As we enter fiscal 2006, we are highly optimistic about the business and expect to achieve double-digit earnings growth."

Full Year Results

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

• Revenue of $29.4 billion, up 19% from $24.7 billion the previous year
• Operating income of $2.47 billion, up 72% from $1.44 billion a year ago
• Operating margin of 8.4%, up from 5.8% the previous year
• Net income of $1.45 billion, up 73% from last year's $838 million
• Earnings per share of $4.72, up 71% from $2.76 per share the previous year

Outlook

FedEx expects earnings to be $1.10 to $1.25 per diluted share in the first quarter of fiscal 2006. This earnings guidance reflects the recent escalation in jet fuel prices which are expected to remain elevated during the quarter. In addition, the earnings guidance reflects the timing lag associated with the Express fuel surcharge, continued startup expenses related to the westbound around-the-world flight and minimal U.S. domestic base yield growth in the company's package services due to a competitive pricing environment.

Earnings for the year are expected to be $5.20 to $5.45 per diluted share, with the company benefiting from growth in FedEx International Priority®, FedEx Ground and FedEx Freight shipments and improving operating margins. Cash flow is expected to improve.

Capital spending for fiscal 2006 is forecast to be approximately $2.5 billion. Investments in the company's highest margin service lines will continue as the company adds incremental international routes, deploys new productivity enhancing technologies and broadens the size of its aircraft fleet and sortation capacity to meet future growth.

FedEx Express Segment

For the fourth quarter, the FedEx Express segment reported:

• Revenue of $5.12 billion, up 9% from last year's $4.71 billion
• Operating income of $431 million, up 6% from $407 million a year ago
• Operating margin of 8.4%, down from 8.6% the previous year

FedEx International Priority (IP) revenue grew 14% for the quarter, as IP revenue per package grew 7%, primarily due to fuel surcharges and favorable exchange rate differences. IP average daily package volume grew 6%. U.S. domestic express package revenue increased more than 5%, as yield increased 3% and U.S. domestic average daily package volume grew 2%. The yield increase was driven by fuel surcharge revenue.

Operating margin during the fourth quarter was negatively impacted by costs associated with the start-up of a new westbound around-the-world flight in support of future international growth at FedEx Express.

 

[AMRCostUnit]

And that is after hiding every penny they can in every hole they can...

Unit

 

[nimtz]

And the stock has dumped 5.5% today! F*cking Street!

 

[skykid]

• Revenue of $29.4 billion, up 19% from $24.7 billion the previous year
• Operating income of $2.47 billion, up 72% from $1.44 billion a year ago
• Operating margin of 8.4%, up from 5.8% the previous year
• Net income of $1.45 billion, up 73% from last year's $838 million
• Earnings per share of $4.72, up 71% from $2.76 per share the previous year

Doesn't exactly help mgt in the old bargaining process. ALPA needs to make a big poster of this and just keep pointing at it.

 

[ironwedge]

And the stock has dumped 5.5% today! F*cking Street!

You think the street might be calling BS? I didn't see that the outlook included any increased costs of labor contracts. I think the street knows labor will get more expensive, but, will the company cost it in advance?

If they projected the anticipated costs, wouldn't they be showing thier hand to alpa. Until the contracts are signed, they won't know what the forward looking costs are and the street knows it.

just my .02

 

[PurpleTail]

And the stock has dumped 5.5% today! F*cking Street!

Buy the rumor, Sell the announcement as the old saying goes. Time to play hardball and set the bar for the rest of the industry.

ONE MORE DAY OF RETROPAY!!!

 

[Rattler71]

Why do people think that just because a company is making record profits that the employees should automatically get part of it?

It is so funny to read about UPS or FEDEX making record profits and employees threatening strike if the company doesn't cough up more. The companies pay what they want to pay. They are not entitled to pay you more, just because they are making more.

I think the companies will give raises to keep people, only if they think it will cost more to replace them, than the raises will cost.


Rattler71

 

[Wise Guy]

Rattler71,

You're right dude, all those profits should go into management's and the shareholders pockets....it certainly shouldn't go to those who work and make those profits possible. After all, all those executives are so under compensated. <sarcasm>

 

[sandman2122]

Changing Subjects

How did the rally go in Memfo?

 

[Rattler71]

Rattler71,

You're right dude, all those profits should go into management's and the shareholders pockets....it certainly shouldn't go to those who work and make those profits possible. After all, all those executives are so under compensated. <sarcasm>

I am one of those who "work and make those profits possible"

But I stand by my statement, just because the company earns it doesn't mean they have to pay it out.

I happen to run a small business on the side. I am sorry, but if I make a profit, I am not obligated to share it with the employees. If I choose to, fine, but I am not obligated. If the employee does'nt want to work for me because of that, then don't let the door hit ya on the way out.

Rattler

 

[skykid]

Why do people think that just because a company is making record profits that the employees should automatically get part of it?

It is so funny to read about UPS or FEDEX making record profits and employees threatening strike if the company doesn't cough up more. The companies pay what they want to pay. They are not entitled to pay you more, just because they are making more.

No kidding? It is huge leverage for the pilots - you are not looking at the big picture.

 

[Rattler71]

No kidding? It is huge leverage for the pilots - you are not looking at the big picture.

I think I see exactly the big picture. Why should only the pilots get the raise?
How about the the truck drivers, loaders, secretaries, operations, custodians?
It's not just about the pilots. Pretty soon the record profit for that year is wiped out.

Rattler

 

[active_herk]

Why do people think that just because a company is making record profits that the employees should automatically get part of it?

It is so funny to read about UPS or FEDEX making record profits and employees threatening strike if the company doesn't cough up more. The companies pay what they want to pay. They are not entitled to pay you more, just because they are making more.

I think the companies will give raises to keep people, only if they think it will cost more to replace them, than the raises will cost.


Rattler71

Although one could certainly argue you have a point, you also have to factor in the fact that the FedEx pilots at least are working under a contract that came into being over five years ago with a specific length. The contract we are working under expired over a year ago. We negotiated the contract that we have right now under a certain set of circumstances. Move ahead six years, and we have a completely new set of circumstances. Given the fact that our contract is overdue, and we are in negotiations for a new contract, doesn't it seem fair that we should be compensated based on the circumstances that are present now rather than the circumstances that were in place six years ago? By your rationale, we should be compensated at the same wages as were present in 1973 when FedEx went into business. After all, why should we make any more money in 2005 than we did in 1973? It shouldn't matter that the company is any more successful.



As far as threatening to strike, I haven't actually heard anyone actually say we are going to strike. We all realize what our options are if we get to a self-help scenario, as does the company. To threaten to strike isn't as important as showing the resolve to strike in my opinion. We must all realize that it isn't in anyone’s best interest to strike, and the union should do everything possible to avoid a withholding of services unless absolutely necessary. If the time comes, however, when a strike becomes unavoidable, then that is the course of action we must take.



You also mentioned that the company pays whatever they want. That isn't entirely true either. If that were the case, we would all be making minimum wage. The fact is we are paid based on what we have negotiated. As it stands, we not only negotiate the amount we are to be paid, but also the length of time that the contract is in place. Once that time period is up, it is time to renegotiate a new pay scale and other issues as deemed important by the union and the company. It is true that they are not entitled to pay us more because they are making more, but couldn't it also be said that the union members shouldn't be forced to make less when a company is having a tough time financially? This is what we have seen, however, with many airline companies. We should make more not simply because the company is making more, but because we are able to negotiate a higher rate of pay based on these circumstances. We, as a membership of a union, find it difficult for the company to not "entitle" us to some compensation increases due to the fact that they are making record profits. That is why we are negotiating.

 

[mongopilot]

Why do people think that just because a company is making record profits that the employees should automatically get part of it?

It is so funny to read about UPS or FEDEX making record profits and employees threatening strike if the company doesn't cough up more. The companies pay what they want to pay. They are not entitled to pay you more, just because they are making more.

I think the companies will give raises to keep people, only if they think it will cost more to replace them, than the raises will cost.


Rattler71

Rattler, I couldn't agree with you more. Hence, that is why unions come on the property. Because nobody in management is going to give us anything, therefore, we must take it. I don't think of this process as a personal thing, it's all business. We must do what we can to take a piece of the pie and I'm sure mngmnt will try to do what they can to cut that piece in half. I'm in no hurry. All I know is that the new contract will start on Jun 01, 2004. My 2 centavos.
Mongo

 

[Goose17]

How did the rally go in Memfo?

It went well. Lots of guys lined up along Democrat Street in front of the AOC. I don't know the official numbers, but it looked impressive.

Did I mention it was HOT!

Goose17

 

[Rattler71]

I agree with everything you said.

If you were paid minimum wage, noone would fly there. They know if they don't pay a competitive wage /benefits package, then they will pay more in training cost to replace employees.

My whole point was, the company is not entitled to pay more just because they have one, or a few good years. True, I have not heard of any Fedex talk of a strike. But that is certainly going on at UPS.

There are alot of post with people trying to encite trouble just because a company post profits. That was the whole point of the post. Not trying to start a flame war.

Rattler

 

[33A]

Rattler71, we can get lost in the philosophical question "what is a man worth?" all day long. This is the real world.


We never said the truck drivers, rampers, couriers didn't deserve a raise. Most of my co-workers are incensed at the fact that FedEx has cancelled the profit sharing plan for the rank-and-file workers at FedEx. The other employee groups of FedEx DO deserve a raise probably more so than me. Will they get it? I can asure you they will not merely by the graciousness of their employer.

Are we as pilots strong-arming the company into submission by proceeding toward self-help and a strike? We most certainly are but that's is reality and I can't change it. I see only two options -

Roll over and rely on their sympathy OR
Stand my ground, do my job to the best of my ability and negotiate my worth


Your are correct that their decisions will be based on economic data; but that will be their call.

 

[33A]

The number was 350+ and I was astonished at the number of people driving by voicing their support. It was at least 25 to 1 the number of supporters versus non-supporters.

 

[Rattler71]

Rattler71, you can get lost in your philosophical "what is a man worth?" all day long. This is the real world.

We never said the truck drivers, rampers, couriers didn't deserve a raise. Most of my co-workers are incensed at the fact that FedEx has cancelled the profit sharing plan for the rank-and-file workers at FedEx. The other employee groups of FedEx DO deserve a raise probably more so than me. Will they get it? I can asure you they will not merely by the graciousness of their employer.

Are we as pilots strong-arming the company into submission by proceeding toward self-help and a strike? We most certainly are but that's is reality and I can't change it. I see only two options -


Have the big corporations of America


Your are correct that their decisions will be based on economic data; but that will be their call.

Dude, not trying to be philosophical at all. Had to look it up just to spell it. And no reason to start personal attacks. And I am in the real world. Been flying freight for the past 28 years.
If the "other employee groups " start leaving in droves to work for someone else who pays more, then I can assure you the employer will pay more. That's all I was trying to say, it is all "economics"

Rattler

 

[klhoard]

The number was 350+ and I was astonished at the number of people driving by voicing their support. It was at least 25 to 1 the number of supporters versus non-supporters.

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And alot of the horn-blowing supporters were driving the big FedEx 18-wheeler's. . .
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