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FedEx Q4 Net Income Increases 7%, Kinko's Revenue Down 2%

Press release from the issuing company

MEMPHIS, Tenn., June 20, 2007 -- FedEx Corporation last week reported earnings of $1.96 per diluted share for the fourth quarter ended May 31, compared to $1.82 per diluted share a year ago. The quarter’s results include a gain from a settlement with Airbus related to the A380 order cancellation, which had a net benefit to earnings of approximately $0.06 per diluted share.

FedEx Kinko’s Segment

For the fourth quarter, the FedEx Kinko’s segment reported:

- Revenue of $532 million, down 2% from last year’s $542 million
- Operating income of $23 million, up 28% from $18 million a year ago
- Operating margin of 4.3%, up from 3.3% the previous year

The FedEx Kinko’s revenue decrease for the quarter was primarily due to declines in copy product revenues, which more than offset higher package acceptance fees paid by FedEx Express and FedEx Ground. Operating margin benefited from higher package acceptance revenues.

FedEx Kinko’s continues to invest in a multi-year plan to open new locations, improve core services and enhance its integrated digital document service network, supporting the company’s objective of being the back office for local businesses and the remote office for traveling professionals. The company opened 226 centers in fiscal 2007 and plans to open approximately 300 new centers in fiscal 2008.