FedEx (FDX) 8-K FedEx Corp. Reports Higher Year-Over-Year

Exhibit 99.1

FOR IMMEDIATE RELEASE

FedEx Corp. Reports Higher Year-Over-Year

Second Quarter Results

Repurchases 10 Million Shares Year to Date

MEMPHIS, Tenn., December 18, 2013 ... FedEx Corp. (NYSE: FDX) today reported earnings of $1.57 per diluted share for the second quarter ended November 30, compared to $1.39 per share last year. Last year’s second quarter results were impacted by $0.11 per diluted share due to the effects of Superstorm Sandy.

“FedEx posted solid second-quarter earnings, reflecting improved performance at FedEx Express, as the profit improvement plan introduced more than a year ago continues to gain momentum,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “The power of our broad global portfolio continues to drive our growth and I am confident we are well on our way to achieving the ambitious goals we have set.”

Second Quarter Results

FedEx Corp. reported the following consolidated results for the second quarter:

• Revenue of $11.4 billion, up 3% from $11.1 billion the previous year

• Operating income of $827 million, up 15% from $718 million last year

• Operating margin of 7.3%, up from 6.5% the previous year

• Net income of $500 million, up 14% from last year’s $438 million

Operating income and margin increased primarily due to yield and cost management at FedEx Express. Results also benefited from the favorable comparison to last year’s Sandy-impacted results, lower pension expense and a modest benefit from the voluntary employee severance program.

In October, FedEx Corporation announced the authorization of a new share repurchase program of up to 32 million shares of common stock, which augmented the 7.4 million shares then remaining under the previously authorized repurchase program. During the second quarter, the company

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repurchased 7.2 million shares of FedEx common stock, increasing the fiscal 2014 year-to-date purchase total to 10.0 million shares. The second quarter share repurchases had no effect on the quarter’s earnings per share, but are expected to improve full year earnings by $0.04 per share.

Outlook

FedEx is increasing its forecast of full-year earnings per share growth to 8% to 14% above last year’s adjusted results, compared to its previous growth range of 7% to 13%. This outlook reflects share repurchases made to date but does not include any benefit from additional share repurchases. Share repurchases are expected to continue, but the timing will be at the company’s discretion. The outlook also assumes the market outlook for fuel prices and continued moderate economic growth. The capital spending forecast for fiscal 2014 remains $4 billion.

“We remain on track to deliver a solid increase in earnings this fiscal year,” said Alan B. Graf, Jr., FedEx Corp. executive vice president and chief financial officer. “FedEx Express reported significant year-over-year improvement in earnings during the quarter, aided by continued execution of our profit improvement programs and by ongoing cost reduction initiatives. We continue to look for additional ways to improve efficiencies and remain committed to increasing long-term shareowner value.”

FedEx Express Segment

For the second quarter, the FedEx Express segment reported:

• Revenue of $6.84 billion, down slightly from last year’s $6.86 billion

• Operating income of $326 million, up 42% from $230 million a year ago

• Operating margin of 4.8%, up from 3.4% the previous year

Revenue decreased slightly due to lower express freight revenue and lower fuel surcharges, mostly offset by increased base package yields. U.S. domestic revenue per package increased 2%, as higher rates and weight per package were partially offset by lower fuel surcharges. U.S. domestic average daily package volume decreased slightly.

FedEx International Priority^® (IP) revenue per package increased 3% while average daily volume declined 5%. Within the IP category, average daily volume for the lower-yielding distribution services declined while IP average daily volume, excluding these distribution services, increased 1%. FedEx International Economy^® average daily volume grew 10%.

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Operating income and margin improved year over year due to higher base package yields, lower pension expense, and lower net expenses from ongoing cost reduction activities.

FedEx Ground Segment

For the second quarter, the FedEx Ground segment reported:

• Revenue of $2.85 billion, up 10% from last year’s $2.59 billion

• Operating income of $424 million, up 3% from $412 million a year ago

• Operating margin of 14.9%, down from 15.9% the previous year

FedEx Ground average daily volume grew 8% in the second quarter, as growth in both business-to-business and FedEx Home Delivery services was driven by market share gains. Revenue per package increased 2% due to rate increases and higher residential surcharges, partially offset by lower fuel surcharges. FedEx SmartPost average daily volume increased 9% primarily due to growth in e-commerce. FedEx SmartPost net revenue per package was down 3% due to higher postage rates and lower fuel surcharges, partially offset by rate increases.

Operating income increased due to higher volume and revenue per package. Operating margin declined primarily due to this year’s later start of the holiday shipping season, as Cyber Week occurred in December this year versus November last year. The seasonal increases in volume, revenue and operating income related to Cyber Week will be realized in this year’s third quarter versus the second quarter last year.

FedEx Freight Segment

For the second quarter, the FedEx Freight segment reported:

• Revenue of $1.43 billion, up 4% from last year’s $1.38 billion

• Operating income of $77 million, up 1% from $76 million a year ago

• Operating margin of 5.4%, down from 5.5% the previous year

Less-than-truckload (LTL) average daily shipments and weight per shipment increased 4% and 2%, respectively. LTL revenue per hundredweight decreased 1% primarily due to lower fuel surcharges, higher weight per shipment and shorter length of haul.

Operating income improved slightly as revenue gains from increased shipments and weight per shipment were partially offset by higher purchased transportation costs.

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Corporate Overview

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $45 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 300,000 team members to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visitnews.fedex.com.

Additional information and operating data are contained in the company’s annual report, Form 10-K, Form 10-Qs and second quarter fiscal 2014 Statistical Book. These materials, as well as a webcast of the earnings release conference call to be held at 8:30 a.m. EST on December 18 are available on the company’s website atinvestors.fedex.com. A replay of the conference call webcast will be posted on our website following the call.

Certain statements in this press release may be considered forward-looking statements, such as statements relating to management's views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate, legal challenges or changes related to FedEx Ground’s owner-operators, our ability to execute on our business realignment program, new U.S. domestic or international government regulation, the impact from any terrorist activities or international conflicts, our ability to effectively operate, integrate and leverage acquired businesses, changes in fuel prices and currency exchange rates, our ability to match capacity to shifting volume levels and other factors which can be found in FedEx Corp.’s and its subsidiaries' press releases and filings with the SEC.

Media Contact: Jess Bunn 901-818-7463

Investor Contact: Mickey Foster 901-818-7468

Home Page: fedex.com

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FEDEX CORP. FINANCIAL HIGHLIGHTS

Second Quarter Fiscal 2014

(In millions, except earnings per share)

(Unaudited)

	Three Months Ended November 30									Six Months Ended November 30
	2013			2012			%			2013			2012			%
Revenue:
FedEx Express segment	$	6,844		$	6,858			(0	%)	$	13,449		$	13,490			(0	%)
FedEx Ground segment		2,849			2,593			10	%		5,579			5,055			10	%
FedEx Freight segment		1,434			1,377			4	%		2,858			2,776			3	%
FedEx Services segment		391			405			(3	%)		766			794			(4	%)
Other & eliminations		(115	)		(126	)		NM			(225	)		(216	)		NM
Total Revenue		11,403			11,107			3	%		22,427			21,899			2	%
Operating Expenses:
Salaries and employee benefits		4,148			4,133			0	%		8,225			8,236			(0	%)
Purchased transportation		2,040			1,860			10	%		3,919			3,540			11	%
Rentals and landing fees		648			630			3	%		1,288			1,248			3	%
Depreciation and amortization		647			592			9	%		1,286			1,165			10	%
Fuel		1,136			1,235			(8	%)		2,240			2,373			(6	%)
Maintenance and repairs		479			511			(6	%)		959			1,053			(9	%)
Other		1,478			1,428			4	%		2,888			2,824			2	%
Total Operating Expenses		10,576			10,389			2	%		20,805			20,439			2	%
Operating Income:
FedEx Express segment		326			230			42	%		562			437			29	%
FedEx Ground segment		424			412			3	%		892			857			4	%
FedEx Freight segment		77			76			1	%		168			166			1	%
Total Operating Income		827			718			15	%		1,622			1,460			11	%
Other Expense:
Interest, net		(30	)		(18	)		NM			(57	)		(28	)		NM
Other, net		(5	)		(8	)		NM			(7	)		(13	)		NM
Total Other Expense		(35	)		(26	)		NM			(64	)		(41	)		NM
Pretax Income		792			692			14	%		1,558			1,419			10	%
Provision for Income Taxes		292			254			15	%		569			522			9	%
Net Income	$	500		$	438			14	%	$	989		$	897			10	%
Diluted Earnings Per Share	$	1.57		$	1.39			13	%	$	3.10		$	2.84			9	%
Weighted Average Common and Common Equivalent Shares		319			315			1	%		319			316			1	%
Capital Expenditures	$	1,118		$	916			22	%	$	1,690		$	1,888			(10	%)

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FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS

Second Quarter Fiscal 2014

(In millions)

	Nov. 30,  2013 (Unaudited)			May 31, 2013
ASSETS
Current Assets
Cash and cash equivalents	$	3,935		$	4,917
Receivables, less allowances		5,377			5,044
Spare parts, supplies and fuel, less allowances		458			457
Deferred income taxes		655			533
Prepaid expenses and other		441			323
Total current assets		10,866			11,274
Property and Equipment, at Cost		39,301			38,109
Less accumulated depreciation and amortization		20,181			19,625
Net property and equipment		19,120			18,484
Other Long-Term Assets
Goodwill		2,737			2,755
Other assets		819			1,054
Total other long-term assets		3,556			3,809
	$	33,542		$	33,567
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current Liabilities
Current portion of long-term debt	$	251		$	251
Accrued salaries and employee benefits		1,403			1,688
Accounts payable		1,868			1,879
Accrued expenses		1,884			1,932
Total current liabilities		5,406			5,750
Long-Term Debt, Less Current Portion		2,739			2,739
Other Long-Term Liabilities
Deferred income taxes		1,945			1,652
Pension, postretirement healthcare and other benefit obligations		3,704			3,916
Self-insurance accruals		1,009			987
Deferred lease obligations		882			778
Deferred gains, principally related to aircraft transactions		215			227
Other liabilities		109			120
Total other long-term liabilities		7,864			7,680
Commitments and Contingencies
Common Stockholders’ Investment
Common stock, $0.10 par value, 800 million shares authorized		32			32
Additional paid-in capital		2,666			2,668
Retained earnings		19,366			18,519
Accumulated other comprehensive loss		(3,769	)		(3,820	)
Treasury stock, at cost		(762	)		(1	)
Total common stockholders’ investment		17,533			17,398
	$	33,542		$	33,567

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FEDEX CORP. CONDENSED CONSOLIDATED

STATEMENTS OF CASH FLOWS

Second Quarter Fiscal 2014

(In millions)

(Unaudited)

	Six Months Ended November 30
	2013			2012
Operating Activities:
Net income	$	989		$	897
Noncash charges:
Depreciation and amortization		1,286			1,165
Other, net		337			424
Changes in operating assets and liabilities, net		(1,003	)		(768	)
Net cash provided by operating activities		1,609			1,718
Investing Activities:
Capital expenditures		(1,690	)		(1,888	)
Business acquisitions, net of cash acquired		—			(483	)
Proceeds from asset dispositions and other		19			20
Net cash used in investing activities		(1,671	)		(2,351	)
Financing Activities:
Principal payments on debt		(3	)		(417	)
Proceeds from debt issuance		—			991
Dividends paid		(95	)		(88	)
Purchase of treasury stock		(1,219	)		(246	)
Other, net		400			50
Net cash (used in) provided by financing activities		(917	)		290
Effect of exchange rate changes on cash		(3	)		17
Net decrease in cash and cash equivalents		(982	)		(326	)
Cash and cash equivalents at beginning of period		4,917			2,843
Cash and cash equivalents at end of period	$	3,935		$	2,517

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FEDEX EXPRESS SEGMENT FINANCIAL HIGHLIGHTS

Second Quarter Fiscal 2014

(Dollars in millions)

(Unaudited)

	Three Months Ended									Six Months Ended
	November 30									November 30
	2013			2012			%			2013			2012			%
Revenues:
Package Revenue:
U.S. Overnight Box	$	1,625		$	1,609			1	%	$	3,209		$	3,213			—
U.S. Overnight Envelope		398			409			(3	%)		817			839			(3	%)
Total U.S. Overnight		2,023			2,018			—			4,026			4,052			(1	%)
U.S. Deferred		771			732			5	%		1,500			1,434			5	%
Total U.S. Package Revenue		2,794			2,750			2	%		5,526			5,486			1	%
International Priority		1,642			1,678			(2	%)		3,218			3,339			(4	%)
International Economy		567			514			10	%		1,099			1,001			10	%
Total International Export Package		2,209			2,192			1	%		4,317			4,340			(1	%)
International Domestic1		385			384			—			730			693			5	%
Total Package Revenue		5,388			5,326			1	%		10,573			10,519			1	%
Freight Revenue:
U.S.		585			645			(9	%)		1,209			1,255			(4	%)
International Priority		417			446			(7	%)		805			885			(9	%)
International Airfreight		55			77			(29	%)		109			151			(28	%)
Total Freight Revenue		1,057			1,168			(10	%)		2,123			2,291			(7	%)
Other Revenue2		399			364			10	%		753			680			11	%
Total Express Revenue	$	6,844		$	6,858			—		$	13,449		$	13,490			—
Operating Expenses:
Salaries and employee benefits		2,469			2,488			(1	%)		4,909			4,961			(1	%)
Purchased transportation		660			608			9	%		1,268			1,145			11	%
Rentals and landing fees		420			418			—			841			833			1	%
Depreciation and amortization		373			336			11	%		742			659			13	%
Fuel		986			1,074			(8	%)		1,942			2,060			(6	%)
Maintenance and repairs		308			349			(12	%)		615			721			(15	%)
Intercompany charges		512			535			(4	%)		1,007			1,072			(6	%)
Other3		790			820			(4	%)		1,563			1,602			(2	%)
Total Operating Expenses		6,518			6,628			(2	%)		12,887			13,053			(1	%)
Operating Income	$	326		$	230			42	%	$	562		$	437			29	%
Operating Margin		4.8	%		3.4	%		1.4	pts		4.2	%		3.2	%		1.0	pts

1 - International Domestic includes international intra-country express operations, including recent acquisitions in Poland (June 2012), France (July 2012) and Brazil (July 2012).

2 - Includes FedEx Trade Networks and FedEx SupplyChain Systems.

3 - Includes predominantly costs associated with outside service contracts (such as security, facility services, and cargo handling), professional fees, uniforms, insurance and advertising.

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FEDEX EXPRESS SEGMENT OPERATING HIGHLIGHTS

Second Quarter Fiscal 2014

(Unaudited)

	Three Months Ended November 30							Six Months Ended November 30
	2013		2012		%			2013		2012		%
PACKAGE STATISTICS1
Average Daily Package Volume (000s):
U.S. Overnight Box		1,146		1,141		—			1,129		1,116		1	%
U.S. Overnight Envelope		535		564		(5	%)		549		570		(4	%)
Total U.S. Overnight Package		1,681		1,705		(1	%)		1,678		1,686		—
U.S. Deferred		841		828		2	%		815		794		3	%
Total U.S. Domestic Package		2,522		2,533		—			2,493		2,480		1	%
International Priority		421		445		(5	%)		414		426		(3	%)
International Economy		172		157		10	%		168		150		12	%
Total International Export Package		593		602		(1	%)		582		576		1	%
International Domestic1		896		884		1	%		842		781		8	%
Total Average Daily Packages		4,011		4,019		—			3,917		3,837		2	%
Yield (Revenue Per Package):
U.S. Overnight Box	$	22.50	$	22.39		—		$	22.39	$	22.49		—
U.S. Overnight Envelope		11.84		11.51		3	%		11.72		11.51		2	%
U.S. Overnight Composite		19.11		18.79		2	%		18.89		18.78		1	%
U.S. Deferred		14.55		14.04		4	%		14.49		14.10		3	%
U.S. Domestic Composite		17.59		17.24		2	%		17.45		17.28		1	%
International Priority		61.87		59.91		3	%		61.27		61.26		—
International Economy		52.27		51.97		1	%		51.35		52.07		(1	%)
Total International Export Composite		59.08		57.84		2	%		58.40		58.86		(1	%)
International Domestic1		6.82		6.88		(1	%)		6.83		6.93		(1	%)
Composite Package Yield	$	21.32	$	21.04		1	%	$	21.25	$	21.42		(1	%)
FREIGHT STATISTICS
Average Daily Freight Pounds (000s):
U.S.		7,872		7,719		2	%		7,646		7,393		3	%
International Priority		3,068		3,212		(4	%)		2,964		3,197		(7	%)
International Airfreight		907		1,166		(22	%)		878		1,135		(23	%)
Total Avg Daily Freight Pounds		11,847		12,097		(2	%)		11,488		11,725		(2	%)
Revenue Per Freight Pound:
U.S.	$	1.18	$	1.32		(11	%)	$	1.25	$	1.33		(6	%)
International Priority		2.16		2.21		(2	%)		2.14		2.16		(1	%)
International Airfreight		0.97		1.05		(8	%)		0.98		1.04		(6	%)
Composite Freight Yield	$	1.42	$	1.53		(7	%)	$	1.46	$	1.53		(5	%)
Operating Weekdays		63		63		—			127		128		(1	%)

1 - Package and freight statistics include only the operations of FedEx Express.

2 - International Domestic includes international intra-country express operations, including recent acquisitions in Poland (June 2012), France (July 2012) and Brazil (July 2012).

9

FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Second Quarter Fiscal 2014

(Dollars in millions)

(Unaudited)

	Three Months Ended November 30									Six Months Ended November 30
	2013			2012			%			2013			2012			%
FINANCIAL HIGHLIGHTS
Revenues:
FedEx Ground	$	2,601		$	2,359			10	%	$	5,107		$	4,632			10	%
FedEx SmartPost		248			234			6	%		472			423			12	%
Total Revenues		2,849			2,593			10	%		5,579			5,055			10	%
Operating Expenses:
Salaries and employee benefits		445			396			12	%		859			773			11	%
Purchased transportation		1,159			1,057			10	%		2,223			2,003			11	%
Rentals		102			85			20	%		194			159			22	%
Depreciation and amortization		118			110			7	%		229			213			8	%
Fuel		4			4			—			7			7			—
Maintenance and repairs		56			46			22	%		109			92			18	%
Intercompany charges		292			262			11	%		577			524			10	%
Other1		249			221			13	%		489			427			15	%
Total Operating Expenses		2,425			2,181			11	%		4,687			4,198			12	%
Operating Income	$	424		$	412			3	%	$	892		$	857			4	%
Operating Margin		14.9	%		15.9	%		(1.0	pts)		16.0	%		17.0	%		(1.0	pts)
OPERATING STATISTICS
Operating Weekdays		63			63			—			127			128			(1	%)
Average Daily Package Volume (000s)
FedEx Ground		4,627			4,283			8	%		4,469			4,087			9	%
FedEx SmartPost		2,218			2,038			9	%		2,154			1,848			17	%
Yield (Revenue Per Package)
FedEx Ground	$	8.90		$	8.72			2	%	$	8.98		$	8.83			2	%
FedEx SmartPost	$	1.77		$	1.82			(3	%)	$	1.72		$	1.79			(4	%)

1 - Includes predominantly costs associated with outside service contracts (such as security and facility services), insurance and professional fees.

10

FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Second Quarter Fiscal 2014

(Dollars in millions)

(Unaudited)

	Three Months Ended November 30									Six Months Ended November 30
	2013			2012			%			2013			2012			%
FINANCIAL HIGHLIGHTS
Revenue	$	1,434		$	1,377			4	%	$	2,858		$	2,776			3	%
Operating Expenses:
Salaries and employee benefits		611			589			4	%		1,209			1,188			2	%
Purchased transportation		250			224			12	%		484			450			8	%
Rentals		31			29			7	%		63			58			9	%
Depreciation and amortization		57			52			10	%		114			105			9	%
Fuel		145			157			(8	%)		290			305			(5	%)
Maintenance and repairs		46			49			(6	%)		92			97			(5	%)
Intercompany charges		117			110			6	%		238			221			8	%
Other1		100			91			10	%		200			186			8	%
Total Operating Expenses		1,357			1,301			4	%		2,690			2,610			3	%
Operating Income	$	77		$	76			1	%	$	168		$	166			1	%
Operating Margin		5.4	%		5.5	%		(0.1	pts)		5.9	%		6.0	%		(0.1	pts)
OPERATING STATISTICS
LTL Operating Weekdays		62			62			—			126			127			(1	%)
Average Daily LTL Shipments (000s)
Priority		63.8			61.6			4	%		62.4			61.5			1	%
Economy		28.1			26.8			5	%		27.9			26.7			4	%
Total Average Daily LTL Shipments		91.9			88.4			4	%		90.3			88.2			2	%
Weight Per LTL Shipment (lbs)
Priority		1,241			1,215			2	%		1,243			1,215			2	%
Economy		992			989			0	%		992			994			(0	%)
Composite Weight Per LTL Shipment		1,165			1,146			2	%		1,165			1,148			1	%
LTL Yield (Revenue/CWT)
Priority	$	17.89		$	18.15			(1	%)	$	17.88		$	17.93			—
Economy		25.92			26.29			(1	%)		25.88			25.80			—
Composite LTL Yield	$	19.98		$	20.28			(1	%)	$	19.99		$	19.99			—

1 - Includes predominantly costs associated with insurance, professional fees and outside service contracts (such as security and facility services).

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