FedEx Corp. has reported earnings of $0.92 per diluted share for the quarter ended May 31, compared to $0.78 per diluted share reported last year.

The company announced the following consolidated results for the fourth quarter:
-- Revenue of $5.83 billion, up 8% from $5.42 billion the previous year
-- Operating income of $492 million, up 18% from $416 million a year ago
-- Net income of $280 million, up 19% from last year's $236 million
Total average daily package volume at FedEx Express and FedEx Ground grew a combined 5% year-over-year for the quarter, due to continued strong growth at Ground and in international express shipments.
For the full fiscal year, FedEx Corp. reported earnings of $2.74 per diluted share. Last year's reported earnings were $2.34 per diluted share including a non-cash charge from an accounting change of $0.05. Additional consolidated results for the fiscal year were:
-- Revenue of $22.5 billion, up 9% from $20.6 billion the previous year
-- Operating income of $1.47 billion, up 11% from $1.32 billion a year ago
-- Net income of $830 million, up 17% from last year's $710 million
"FedEx achieved record earnings during the year, as the company advanced its strategy of being a full-service transportation company with the broadest choices in the industry," said Frederick W. Smith, chairman, president and chief executive officer. "Our strategy execution enabled the company to improve its revenue, earnings and returns during the year, posting a strong performance despite challenging economic conditions."
"FedEx's return on invested capital improved in fiscal 2003, as earnings continued to increase and the company's capital intensity declined," said Alan B. Graf, Jr., executive vice president and chief financial officer. "We believe that our efforts, combined with an improving economy, will provide FedEx improved profitability and cash flow."
Capital spending in fiscal 2003 was $1.5 billion, marking the fifth consecutive year of reduced capital expenditures. The company generated solid positive cash flow during the year despite more than $1 billion in pension contributions.
The company recently announced that it would offer two new programs at FedEx Express during fiscal 2004 to enable the company to continue resizing its U.S. organization and improve profitability. The first program will be a voluntary retirement option with an enhanced pension package to certain groups of employees age 50 or older. The second program will offer voluntary severance incentives to eligible employees.
The estimated savings from these programs are expected to be $100 million to $130 million in fiscal 2004, primarily in the second half of the fiscal year. The resulting net cost of these programs in fiscal 2004 is expected to be $130 million to $160 million. In fiscal 2005 and beyond, the estimated annual savings from these programs are expected to be $150 million to $190 million.
During fiscal 2004, the company expects the U. S. economy to remain sluggish in its first fiscal quarter. Year-over-year economic improvement is expected to be evident in the second half of fiscal 2004, although sequential improvement may come earlier. The company believes that the fundamentals are in place for economic acceleration in the U.S. in the second half of fiscal 2004, including supportive conditions in the overall financial market, the recently approved tax stimulus package, continued accommodative monetary stance and improved consumer confidence.
For more information, visit www.fedex.com/us/investorrelations.