May 7, 2001 ... FedEx Corporation (NYSE: FDX) today announced that earnings for the fourth quarter ended May 31 are expected to be in the range of $0.50 to $0.60 per share, compared to $0.85 per share last year.
"Deteriorating economic conditions and the rapid decline in the high-tech and other durable goods industries have increasingly affected FedEx Express volumes," said Alan B. Graf, Jr., executive vice president and chief financial officer. "In April, U.S. domestic average daily volume at FedEx Express declined 9% year-over-year. Additionally, the growth rate of FedEx international Priority® shipments slowed to 1% year-over-year. FedEx Ground package volume grew about 5%, while package yields at both FedEx Express and FedEx Ground continue to show solid growth. We expect the economic softness to continue into our fiscal 2002, which begins June 1, 2001. Although we are taking steps to substantially reduce expense and capital spending, we nonetheless expect our first quarter earnings will be significantly below last year's $0.58 per share."
