Federal Express 2000 Annual Report Download - page 4

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DEAR FELLOW SHAREOWNERS,
Just as we did in FY99 – when we overcam e
significant challenges to post record rev-
enues, record earnings per share and record
service levels – FedEx Corporation has closed
FY00 with the strong financial results that
our shareowners have come to expect.
For the 12 months ended May 31, 2000:
>Revenue rose 9% to $18.3 billion
>N et incom e increased 9% to
$688 m illion
>Earnings per share rose to $2.32 versus
$2.10 per diluted share a year ago, for
a 10% gain.
Continued econom ic strength – particularly
in the high-tech and high-value-added sec-
tors – led to improved growth rates in the
largest segment of our business, express
transportation. Our international express
business continued to grow at the fastest pace,
with revenues rising 18%, led by increases in
Asia-Pacific and Europe. Com bine our
im proved growth rates with our demonstrated
fiscal responsibility – for exam ple, holding
capital spending to less than $2 billion – and
it’s evident that, for FY00, FedEx Corporation
turned challenge into opportunity.
FEDEX STRATEGIC PLAN
“Challenge” was also the operative word for
an increasingly competitive environm ent. To
turn that challenge into our competitive
advantage, FedEx Corporation conducted
extensive research to develop a new strategic
plan, which we unveiled in January and
called “Project ARISE.”
This new strategic plan is based on three
sound principles:
> To leverage a significant point of com peti-
tive differentiation,we strengthened our
superior business philosophy – to operate
independently yet compete collectively.
Independently, each company is free to focus
on the distinct needs of its market segm ent,
without comprom ising networks or service.
Collectively, the entire FedEx family works
together to cross-sell services and choreo-
graph custom er solutions.
> To extend the strength of the powerful
FedEx brand nam e,we rebranded our major
operating companies to include FedEx Express,
FedEx Ground, FedEx Custom Critical, FedEx
Logistics and FedEx Trade N etworks.
> To provide a single point of access for our
custom ers,we reorganized and created the new
FedEx Corporate Services com pany, which
integrates customer-related activities such as
sales, m arketing and information technology.
Through FedEx Services, our custom ers now
have one “touch point” to connect with the full
range of FedEx services – one sales rep, one toll-
free customer service line, one Web site, one
customer automation platform and, soon, one
account num ber and one invoice.
It’s really very sim ple. Our strategic plan is
good for custom ers, good for shareowners
and good for FedEx. Customers benefit from
convenient, one-stop shopping for the full
range of FedEx transportation, logistics and
e-com m erce solutions. Shareowners benefit
from tangible, strategic opportunities for
continued profitable growth. And, in the
MESSAGE FROM THE CEO