Federal Express 2005 Annual Report Download - page 59

MANAGEMENT’S DISCUSSION AND ANALYSIS
57
FORWARD-LOOKING STATEMENTS
Certain statements in this report, including (but not limited
to) those contained in the following sections of MD&A,
“Outlook (including segment outlooks),” “Liquidity,”“Capital
Resources,” “Contractual Cash Obligations” and “Critical
Accounting Policies and Estimates,” and the “Employee Benefit
Plans” note to the consolidated financial statements, are
“forward-looking” statements within the meaning of the Private
Securities Litigation Reform Act of 1995 with respect to the
financial condition, results of operations, cash flows, plans,
objectives, future performance and business of FedEx. Forward-
looking statements include those preceded by, followed by or that
include the words “may,”“could,”“would,”“should,”“believes,”
“expects,”“anticipates,” “plans,”“estimates,”“targets,”“projects,”
“intends” or similar expressions. These forward-looking
statements involve risks and uncertainties. Actual results may
differ materially from those contemplated (expressed or implied)
by such forward-looking statements, because of, among other
things, potential risks and uncertainties, such as:
• economic conditions in the domestic and international markets
in which we operate;
• any impacts on our business resulting from new domestic or
international government regulation, including regulatory
actions affecting aviation rights, security requirements and
labor rules;
• the impact of any international conflicts or terrorist activities on
the United States and global economies in general, the trans-
portation industry of FedEx in particular, and what effects these
events will have on our costs or the demand for our services;
• our ability to manage our cost structure for capital expenditures
and operating expenses and match them, especially those relat-
ing to aircraft, vehicle and sort capacity, to shifting customer
volume levels;
• our ability to effectively operate, integrate and leverage the
FedEx Kinko’s business;
• sudden changes in fuel prices or currency exchange rates;
• our ability to maintain or increase our fuel surcharges in
response to rising fuel prices due to competitive pressures;
• significant changes in the volumes of shipments transported
through our networks, customer demand for our various ser-
vices or the prices we obtain for our services;
• our ability to successfully defend against challenges to our
independent contractor model;
• the outcome of negotiations to reach a new collective bargain-
ing agreement with the union that represents the pilots of FedEx
Express;
• market acceptance of our new service and growth initiatives;
• competition from other providers of transportation, e-commerce
and business services, including our ability to compete with
new or improved services offered by our competitors;
• the impact of technology developments on our operations and
on demand for our services;
• disruptions to our technology infrastructure, including our com-
puter systems and Web site;
• our ability to obtain and maintain aviation rights in important
international markets;
• adverse weather conditions or natural disasters;
• availability of financing on terms acceptable to us and our ability
to maintain our current credit ratings; and
• other risks and uncertainties you can find in our press releases
and SEC filings.
As a result of these and other factors, no assurance can be
given as to our future results and achievements. Accordingly, a
forward-looking statement is neither a prediction nor a guaran-
tee of future events or circumstances and those future events or
circumstances may not occur. You should not place undue
reliance on the forward-looking statements, which speak only as
of the date of this report. We are under no obligation, and we
expressly disclaim any obligation, to update or alter any forward-
looking statements, whether as a result of new information,
future events or otherwise.