FedEx (FDX) 8-K FedEx Corp. Reports Strong Earnings Growth

Exhibit 99.1

FOR IMMEDIATE RELEASE

FedEx Corp. Reports Strong Earnings Growth

MEMPHIS, Tenn., December 17, 2014… FedEx Corp. (NYSE: FDX) today reported earnings of $2.14 per diluted share for the second quarter ended November 30, up 36% from last year’s $1.57 per share.

“FedEx posted strong results and a higher operating margin in the second quarter, with continued growth in volumes and base yields in each of our transportation segments,” said Frederick W. Smith, FedEx Corp. chairman, president and chief executive officer. “We are in the final stages of this year’s peak shipping season, and I’d like to thank the more than 300,000 dedicated team members around the world for once again delivering outstanding service to our customers during the holidays.”

Second Quarter Results

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

• Revenue of $11.9 billion, up 5% from $11.4 billion the previous year

• Operating income of $1.01 billion, up 22% from $827 million last year

• Operating margin of 8.5%, up from 7.3% a year ago

• Net income of $616 million, up 23% from last year’s $500 million

Operating income and margin increased primarily due to higher volumes and base yields in all three transportation segments. Results in the second quarter also included benefits from the company’s profit improvement programs, lower pension expense and a slightly positive net impact from fuel. These benefits were partially offset by higher aircraft maintenance expense due to the timing of aircraft maintenance events.

Share repurchases benefited second quarter earnings by $0.16 per diluted share.

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Outlook

The company reaffirms its fiscal 2015 earnings forecast of $8.50 to $9.00 per diluted share. The outlook assumes continued moderate economic growth and a modest net benefit from fuel. The capital spending forecast for fiscal 2015 remains $4.2 billion.

Fuel Surcharges

FedEx regularly reviews its fuel surcharge tables and will update certain tables at FedEx Express, FedEx Ground and FedEx Freight effective February 2, 2015. Details on these changes will be available on fedex.com by December 23, 2014.

FedEx Express Segment

For the second quarter, the FedEx Express segment reported:

• Revenue of $7.02 billion, up 3% from last year’s $6.84 billion

• Operating income of $484 million, up 36% from $357 million a year ago

• Operating margin of 6.9%, up from 5.2% the previous year

Revenue increased due to higher U.S. domestic package volume and international export package base revenue, partially offset by lower fuel surcharges and exchange rates. U.S. domestic package volume grew by 7%, including a 10% increase in U.S. overnight box. U.S. domestic revenue per package declined 2% due to decreased fuel surcharges and lower weight.

FedEx International Economy^® volume grew 5%, while FedEx International Priority^® volume increased 1%. International export revenue per package was flat, as higher rates were offset by unfavorable currency exchange and lower fuel surcharges.

Operating results improved due primarily to U.S. domestic and international export package revenue growth, cost management related to profit improvement programs, lower pension expense and a slight net benefit from fuel. These improvements were partially offset by the timing of higher aircraft maintenance expense. The year over year increase in aircraft maintenance expense is expected to subside beginning in the fourth fiscal quarter.

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FedEx Ground Segment

For the second quarter, the FedEx Ground segment reported:

• Revenue of $3.06 billion, up 8% from last year’s $2.85 billion

• Operating income of $465 million, up 6% from $439 million a year ago

• Operating margin of 15.2%, down from 15.4% the previous year

FedEx Ground average daily volume grew 5% in the second quarter, driven by growth in both business-to-business and FedEx Home Delivery services. Revenue per package increased 3% due to rate increases and higher residential surcharges. FedEx SmartPost average daily volume decreased 4% due to the reduction in volume of a major customer. FedEx SmartPost revenue per package increased 7% due to rate increases and improved customer mix, partially offset by higher postage rates.

Operating income increased due to higher revenue per package and volume, partially offset by higher network expansion costs, as the company continues to heavily invest in the FedEx Ground and FedEx SmartPost businesses.

FedEx Freight Segment

For the second quarter, the FedEx Freight segment reported:

• Revenue of $1.59 billion, up 11% from last year’s $1.43 billion

• Operating income of $112 million, up 35% from $83 million a year ago

• Operating margin of 7.1%, up from 5.8% the previous year

Less-than-truckload (LTL) average daily shipments increased 8%, including a 10% increase in demand for Priority service. LTL revenue per shipment grew 3% due to higher weight per shipment, higher rates and increased fuel surcharges.

Operating results improved due to increased LTL revenue per shipment and higher average daily LTL shipments.

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 $47 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

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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 2015 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 17 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, our ability to execute on our profit improvement programs, legal challenges or changes related to FedEx Ground’s owner-operators, 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 2015

(In millions, except earnings per share)

(Unaudited)

	Three Months Ended									Six Months Ended
	November 30									November 30
	2014			2013			%			2014			2013			%
Revenue:
FedEx Express segment	$	7,024		$	6,844			3%		$	13,886		$	13,449			3%
FedEx Ground segment		3,063			2,849			8%			6,023			5,579			8%
FedEx Freight segment		1,585			1,434			11%			3,194			2,858			12%
FedEx Services segment		394			391			1%			768			766			—
Eliminations and other		(127	)		(115	)		NM			(248	)		(225	)		NM
Total Revenue		11,939			11,403			5%			23,623			22,427			5%
Operating Expenses:
Salaries and employee benefits		4,304			4,148			4%			8,493			8,225			3%
Purchased transportation		2,185			2,040			7%			4,239			3,919			8%
Rentals and landing fees		663			648			2%			1,323			1,288			3%
Depreciation and amortization		651			647			1%			1,302			1,286			1%
Fuel		1,052			1,136			(7%	)		2,172			2,240			(3%	)
Maintenance and repairs		543			479			13%			1,099			959			15%
Other		1,528			1,478			3%			2,995			2,888			4%
Total Operating Expenses		10,926			10,576			3%			21,623			20,805			4%
Operating Income:
FedEx Express segment		484			357			36%			853			630			35%
FedEx Ground segment		465			439			6%			1,010			922			10%
FedEx Freight segment		112			83			35%			280			182			54%
Corporate, eliminations and other		(48	)		(52	)		NM			(143	)		(112	)		NM
Total Operating Income		1,013			827			22%			2,000			1,622			23%
Other Expense:
Interest, net		(47	)		(30	)		NM			(95	)		(57	)		NM
Other, net		5			(5	)		NM			3			(7	)		NM
Total Other Expense		(42	)		(35	)		NM			(92	)		(64	)		NM
Pretax Income		971			792			23%			1,908			1,558			22%
Provision for Income Taxes		355			292			22%			686			569			21%
Net Income	$	616		$	500			23%		$	1,222		$	989			24%
Diluted Earnings Per Share	$	2.14		$	1.57			36%		$	4.24		$	3.10			37%
Weighted Average Common and
Common Equivalent Shares		287			319			(10%	)		288			319			(10%	)
Capital Expenditures	$	1,170		$	1,118			5%		$	1,890		$	1,690			12%

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FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS

Second Quarter Fiscal 2015

(In millions)

	Nov. 30, 2014
	(Unaudited)			May 31, 2014
ASSETS
Current Assets
Cash and cash equivalents	$	2,266		$	2,908
Receivables, less allowances		5,592			5,460
Spare parts, supplies and fuel, less allowances		476			463
Deferred income taxes		497			522
Prepaid expenses and other		381			330
Total current assets		9,212			9,683
Property and Equipment, at Cost		41,616			40,691
Less accumulated depreciation and amortization		21,723			21,141
Net property and equipment		19,893			19,550
Other Long-Term Assets
Goodwill		2,734			2,790
Other assets		1,145			1,047
Total other long-term assets		3,879			3,837
	$	32,984		$	33,070
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
Current Liabilities
Current portion of long-term debt	$	—		$	1
Accrued salaries and employee benefits		1,219			1,277
Accounts payable		1,968			1,971
Accrued expenses		1,986			2,063
Total current liabilities		5,173			5,312
Long-Term Debt, Less Current Portion		4,735			4,736
Other Long-Term Liabilities
Deferred income taxes		2,104			2,114
Pension, postretirement healthcare and other benefit obligations		3,136			3,484
Self-insurance accruals		1,072			1,038
Deferred lease obligations		832			758
Deferred gains, principally related to aircraft transactions		193			206
Other liabilities		176			145
Total other long-term liabilities		7,513			7,745
Commitments and Contingencies
Common Stockholders’ Investment
Common stock, $0.10 par value, 800 million shares authorized		32			32
Additional paid-in capital		2,618			2,643
Retained earnings		21,480			20,429
Accumulated other comprehensive loss		(3,787	)		(3,694	)
Treasury stock, at cost		(4,780	)		(4,133	)
Total common stockholders’ investment		15,563			15,277
	$	32,984		$	33,070

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FEDEX CORP. CONDENSED CONSOLIDATED

STATEMENTS OF CASH FLOWS

Second Quarter Fiscal 2015

(In millions)

(Unaudited)

	Six Months Ended
	November 30
	2014			2013
Operating Activities:
Net income	$	1,222		$	989
Noncash charges:
Depreciation and amortization		1,302			1,286
Other, net		214			337
Changes in operating assets and liabilities, net		(587	)		(1,003	)
Net cash provided by operating activities		2,151			1,609
Investing Activities:
Capital expenditures		(1,890	)		(1,690	)
Proceeds from asset dispositions and other		7			19
Net cash used in investing activities		(1,883	)		(1,671	)
Financing Activities:
Principal payments on debt		(1	)		(3	)
Dividends paid		(114	)		(95	)
Purchase of treasury stock		(947	)		(1,219	)
Other, net		212			400
Net cash (used in) provided by financing activities		(850	)		(917	)
Effect of exchange rate changes on cash		(60	)		(3	)
Net decrease in cash and cash equivalents		(642	)		(982	)
Cash and cash equivalents at beginning of period		2,908			4,917
Cash and cash equivalents at end of period	$	2,266		$	3,935

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FEDEX EXPRESS SEGMENT FINANCIAL HIGHLIGHTS

Second Quarter Fiscal 2015

(Dollars in millions)

(Unaudited)

	Three Months Ended							Six Months Ended
	November 30							November 30
	2014		2013		%			2014		2013		%
Revenues:
Package Revenue:
U.S. Overnight Box	$	1,705	$	1,625		5%		$	3,387	$	3,209		6%
U.S. Overnight Envelope		400		398		1%			815		817		—
Total U.S. Overnight		2,105		2,023		4%			4,202		4,026		4%
U.S. Deferred		834		771		8%			1,629		1,500		9%
Total U.S. Package Revenue		2,939		2,794		5%			5,831		5,526		6%
International Priority		1,649		1,642		—			3,279		3,218		2%
International Economy		598		567		5%			1,169		1,099		6%
Total International Export Package		2,247		2,209		2%			4,448		4,317		3%
International Domestic1		383		385		(1%	)		754		730		3%
Total Package Revenue		5,569		5,388		3%			11,033		10,573		4%
Freight Revenue:
U.S.		586		585		—			1,165		1,209		(4%	)
International Priority		412		417		(1%	)		807		805		—
International Airfreight		42		55		(24%	)		88		109		(19%	)
Total Freight Revenue		1,040		1,057		(2%	)		2,060		2,123		(3%	)
Other Revenue2		415		399		4%			793		753		5%
Total Express Revenue	$	7,024	$	6,844		3%		$	13,886	$	13,449		3%
Operating Expenses:
Salaries and employee benefits		2,531		2,469		3%			5,016		4,909		2%
Purchased transportation		681		660		3%			1,328		1,268		5%
Rentals and landing fees		422		420		—			848		841		1%
Depreciation and amortization		368		373		(1%	)		742		742		—
Fuel		906		986		(8%	)		1,876		1,942		(3%	)
Maintenance and repairs		357		308		16%			736		615		20%
Intercompany charges3		453		481		(6%	)		902		939		(4%	)
Other		822		790		4%			1,585		1,563		1%
Total Operating Expenses3		6,540		6,487		1%			13,033		12,819		2%
Operating Income3	$	484	$	357		36%		$	853	$	630		35%
Operating Margin3		6.9%		5.2%		1.7 pts			6.1%		4.7%		1.4 pts

1 – International Domestic revenues represent international intra-country express operations.

2 – Includes FedEx Trade Networks and FedEx SupplyChain Systems.

3 – Prior year amounts have been revised to conform to the current year segment presentation regarding the allocation of corporate headquarters costs.

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FEDEX EXPRESS SEGMENT OPERATING HIGHLIGHTS

Second Quarter Fiscal 2015

(Unaudited)

	Three Months Ended							Six Months Ended
	November 30							November 30
	2014		2013		%			2014		2013		%
PACKAGE STATISTICS1
Average Daily Package Volume (000s):
U.S. Overnight Box		1,259		1,146		10%			1,235		1,129		9%
U.S. Overnight Envelope		521		535		(3%	)		524		549		(5%	)
Total U.S. Overnight Package		1,780		1,681		6%			1,759		1,678		5%
U.S. Deferred		915		841		9%			880		815		8%
Total U.S. Domestic Package		2,695		2,522		7%			2,639		2,493		6%
International Priority		424		421		1%			417		414		1%
International Economy		180		172		5%			175		168		4%
Total International Export Package		604		593		2%			592		582		2%
International Domestic1		917		896		2%			866		842		3%
Total Average Daily Packages		4,216		4,011		5%			4,097		3,917		5%
Yield (Revenue Per Package):
U.S. Overnight Box	$	21.50	$	22.50		(4%	)	$	21.59	$	22.39		(4%	)
U.S. Overnight Envelope		12.15		11.84		3%			12.24		11.72		4%
U.S. Overnight Composite		18.76		19.11		(2%	)		18.81		18.89		—
U.S. Deferred		14.48		14.55		—			14.58		14.49		1%
U.S. Domestic Composite		17.31		17.59		(2%	)		17.40		17.45		—
International Priority		61.64		61.87		—			61.92		61.27		1%
International Economy		52.88		52.27		1%			52.75		51.35		3%
Total International Export Composite		59.04		59.08		—			59.21		58.40		1%
International Domestic1		6.63		6.82		(3%	)		6.85		6.83		—
Composite Package Yield	$	20.97	$	21.32		(2%	)	$	21.21	$	21.25		—
FREIGHT STATISTICS
Average Daily Freight Pounds (000s):
U.S.		8,039		7,872		2%			7,676		7,646		—
International Priority		2,983		3,068		(3%	)		2,887		2,964		(3%	)
International Airfreight		630		907		(31%	)		650		878		(26%	)
Total Avg Daily Freight Pounds		11,652		11,847		(2%	)		11,213		11,488		(2%	)
Revenue Per Freight Pound:
U.S.	$	1.16	$	1.18		(2%	)	$	1.20	$	1.25		(4%	)
International Priority		2.19		2.16		1%			2.20		2.14		3%
International Airfreight		1.07		0.97		10%			1.07		0.98		9%
Composite Freight Yield	$	1.42	$	1.42		—		$	1.45	$	1.46		(1%	)
Operating Weekdays		63		63		—			127		127		—

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

2  – International Domestic revenues represent international intra-country express operations.

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FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Second Quarter Fiscal 2015

(Dollars in millions)

(Unaudited)

	Three Months Ended							Six Months Ended
	November 30							November 30
	2014		2013		%			2014		2013		%
FINANCIAL HIGHLIGHTS
Revenues:
FedEx Ground	$	2,809	$	2,601		8%		$	5,548	$	5,107		9%
FedEx SmartPost		254		248		2%			475		472		1%
Total Revenues		3,063		2,849		8%			6,023		5,579		8%
Operating Expenses:
Salaries and employee benefits		485		445		9%			933		859		9%
Purchased transportation		1,263		1,159		9%			2,417		2,223		9%
Rentals		115		102		13%			223		194		15%
Depreciation and amortization		126		118		7%			245		229		7%
Fuel		3		4		(25%	)		6		7		(14%	)
Maintenance and repairs		57		56		2%			113		109		4%
Intercompany charges1		278		277		—			553		547		1%
Other		271		249		9%			523		489		7%
Total Operating Expenses1		2,598		2,410		8%			5,013		4,657		8%
Operating Income1	$	465	$	439		6%		$	1,010	$	922		10%
Operating Margin1		15.2%		15.4%		(0.2 pts	)		16.8%		16.5%		0.3 pts
OPERATING STATISTICS
Operating Weekdays
FedEx Ground		63		63		—			127		127		—
FedEx SmartPost		63		63		—			127		127		—
Average Daily Package Volume (000s)
FedEx Ground		4,845		4,627		5%			4,709		4,469		5%
FedEx SmartPost		2,122		2,218		(4%	)		2,000		2,154		(7%	)
Yield (Revenue Per Package)
FedEx Ground	$	9.18	$	8.90		3%		$	9.25	$	8.98		3%
FedEx SmartPost	$	1.90	$	1.77		7%		$	1.87	$	1.72		9%

1 – Prior year amounts have been revised to conform to the current year segment presentation regarding the allocation of corporate headquarters costs.

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FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

Second Quarter Fiscal 2015

(Dollars in millions)

(Unaudited)

	Three Months Ended							Six Months Ended
	November 30							November 30
	2014		2013		%			2014		2013		%
FINANCIAL HIGHLIGHTS
Revenue	$	1,585	$	1,434		11%		$	3,194	$	2,858		12%
Operating Expenses:
Salaries and employee benefits		686		611		12%			1,342		1,209		11%
Purchased transportation		273		250		9%			557		484		15%
Rentals		31		31		—			63		63		—
Depreciation and amortization		58		57		2%			116		114		2%
Fuel		143		145		(1%	)		290		290		—
Maintenance and repairs		53		46		15%			99		92		8%
Intercompany charges1		111		111		—			221		224		(1%	)
Other		118		100		18%			226		200		13%
Total Operating Expenses1		1,473		1,351		9%			2,914		2,676		9%
Operating Income1	$	112	$	83		35%		$	280	$	182		54%
Operating Margin1		7.1%		5.8%		1.3 pts			8.8%		6.4%		2.4 pts
OPERATING STATISTICS
LTL Operating Weekdays		62		62		—			126		126		—
Average Daily LTL Shipments (000s)
Priority		70.1		63.8		10%			69.5		62.4		11%
Economy		29.3		28.1		4%			29.3		27.9		5%
Total Average Daily LTL Shipments		99.4		91.9		8%			98.8		90.3		9%
Weight Per LTL Shipment (lbs)
Priority		1,245		1,241		—			1,251		1,243		1%
Economy		1,010		992		2%			1,012		992		2%
Composite Weight Per LTL Shipment		1,176		1,165		1%			1,180		1,165		1%
LTL Revenue/Shipment
Priority	$	228.62	$	221.99		3%		$	228.34	$	222.24		3%
Economy		265.46		257.15		3%			265.44		256.76		3%
Composite LTL Revenue/Shipment	$	239.49	$	232.73		3%		$	239.32	$	232.89		3%
LTL Revenue/CWT
Priority	$	18.36	$	17.89		3%		$	18.25	$	17.88		2%
Economy		26.29		25.92		1%			26.24		25.88		1%
Composite LTL Revenue/CWT	$	20.37	$	19.98		2%		$	20.27	$	19.99		1%

1 – Prior year amounts have been revised to conform to the current year segment presentation regarding the allocation of corporate headquarters costs.

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