Federal Express 2011 Annual Report Download - page 5

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The new FedEx Data Center in Colorado
Springs represents a major milestone in our
commitment to use advanced technologies
to benefit our customers. It not only supports
our plans for growth but also provides an
additional level of data protection. It’s
LEED-certified and is one of the most
energy-efficient data centers in the country.
Dedicated to energy efficiency
At FedEx, our goal is to connect the world in
responsible and resourceful ways. It starts
with reducing our own fuel consumption and
advocating that our nation lessen its depen-
dence on foreign oil. We’re embracing new
energy alternatives and have a head start on
transitioning to alternative power sources.
By 2030, we want to obtain 30 percent of
our jet fuel from alternative fuel sources. We
are working with the FAA, the Department
of Energy and the Commercial Aviation
Alternative Fuel Initiative to develop
certification standards for biofuels. We’re
also collaborating with the U.S. Department
of Agriculture and other agencies.
On the ground, our vision is to help develop
a new short-haul transportation system
powered by electricity. The Electrification
Coalition, of which I’m a member, has
recommended the creation of “electrification
deployment communities” — areas where
incentives would support electrification on a
broad scale. Today we’re testing all-electric
vehicles in the U.S. and Europe. As the cost of
these electric vehicles comes down, we’ll
add more to our fleet.
Focused on the future
As we continue to gain ground in the world
marketplace, we will stay focused on three
pillars supporting our reputation.
First, we are committed to growing our
earnings. We exist to serve our customers and
to earn a profit for our shareowners. As we’ve
shown with our most recent earnings results,
we’re on track to achieve the long-term
financial goals to which we’ve adhered for
many years: growing our revenue, achieving
10 percent-plus operating margins, improving
earnings per share 10 percent to 15 percent,
increasing cash flows, and increasing returns
on invested capital.
Second, we intend to improve on our
established reputation as an ethical
company. We’re dedicated to conducting our
business around the world in an honest and
forthright way. It starts with our transparency
in financial reporting, for which we’ve been
recognized consistently.
We will continue do the right things for
our shareowners, our customers, our team
members and the communities we serve. We
leveraged our long-standing relationships with
humanitarian organizations to deliver critical
medical and emergency supplies to Japan
following the recent earthquake and tsunami.
To support these relief efforts, we committed
$1 million in cash and in-kind transportation.
Overall in FY11, FedEx donated nearly
$5 million in in-kind disaster relief shipping.
Finally, we’ll reinforce our reputation as a
great place to work. Nothing inspires more
pride than our team members delivering
the Purple Promise — “I will make every
FedEx experience outstanding.” Because
of their relentless dedication, we’re ranked
among the Top Ten on FORTUNE’s World’s
Most Admired Companies list and on the
Reputation Institute’s list of most admirable
U.S. companies.
That’s why we’re committed to giving our
team members the career opportunities, the
rewards and the recognition they deserve for
doing a great job. Thanks, FedEx team, for
being a powerhouse in the marketplace
and for bringing tremendous momentum
to our business.
We’ve set the stage for success, but at the
same time, we serve a higher purpose —
to provide unique access for individuals,
businesses and markets around the world.
The more individual economies are connected,
the more the world will prosper. That’s why
FedEx is more than a transportation
business. We are in the transformation
business, making a positive difference in
people’s lives every single day.
Frederick W. Smith
Chairman, President and Chief Executive Officer
“WE’RE REAPING
THE BENEFITS OF
THE STRATEGIES WE
EXECUTED DURING
TOUGHER TIMES.
”
MORE
>
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