FEDEX POSTS SOLID FOURTH-QUARTER, FISCAL YEAR RESULTS

FEDEX POSTS SOLID FOURTH-QUARTER, FISCAL YEAR RESULTS    FedEx Corp., the Memphis-based express giant, reported strong rises in net income for its fiscal fourth quarter and year ended May 31, due to record performances of its ground delivery services.
   Fourth-quarter net income jumped 109 percent to $236 million on revenue of $5.42 billion, up 6 percent. Operating income improved 86 percent to $224 million.
   'Our FedEx Ground and FedEx Freight units are operating at record profit and service reliability levels,' said Frederick W. Smith, chairman, president and chief executive officer of FedEx. 'FedEx Express has significantly reduced capital spending levels and has also been able to achieve record levels of service reliability, even as volume has declined during a difficult economic environment.'
   For the year, FedEx's net income rose 22 percent to $710 million on $20.6 billion in revenue, up 5 percent. Operating income rose 23 percent to $1.32 billion. Operating margin for the year improved to 6.4 percent, from 5.5 percent.
   FedEx Express' fiscal fourth-quarter operating income rose 49 percent to $236 million on $4.00 billion in revenue, up 4 percent. Revenue growth was due primarily from a transportation agreement with the U.S. Postal Service.
   FedEx Express' fourth-quarter U.S. domestic average daily package volume declined 3 percent, although U.S. domestic deferred package volume grew 3 percent. FedEx International Priority volume grew 3 percent, due to strong Asia and Europe shipments.
   For fiscal 2002, FedEx Express saw operating income slide 4 percent to $811 million, on $15.33 billion in revenue, down 1 percent.
   FedEx Ground saw fourth-quarter operating income soar 125 percent to $128 million on revenue of $743 million, up 27 percent. Operating margin for the quarter was 17.2 percent, compared to 9.8 percent for the fourth quarter of 2001.
   Average daily package volume grew 21 percent, with about one-third of that coming from FedEx Home Delivery. Yield per package rose 3 percent.
   FedEx Home Delivery incurred a pre-tax loss of $32 million for fiscal 2002, an improvement of $19 million year-over year. The unit's coverage expanded to 90 percent last year, and should reach 100 percent of the U.S. population by September.
   For the fiscal year, FedEx Ground reported operating income of $337 million, up 93 percent, on $2.71 billion in revenue, up 21 percent.
   FedEx Freight saw fourth-quarter operating income rise 38 percent to $51 million on $522 revenue, up 5 percent. Operating margin was 9.8 percent, compared to 7.4 percent for the year-earlier quarter.
   The unit's fiscal year operating income was $168 million, on $1.96 billion in revenue.
   FedEx anticipates first-quarter net earnings to be in the 40 to 50 cents per share range, compared to 41 cents per share in the first quarter of 2002.
   FedEx said it is 'comfortable' with current First Call consensus estimates for fiscal year of $2.77 per share, which would represent a 16-percent year-over-year increase in earnings per share.