Release Date: 25 September 2006
Release ID: 362
Shareowners of FedEx Corp. (NYSE: FDX) today elected Steven R. Loranger, chairman, president and chief executive officer of ITT Corporation, to the corporation’s Board of Directors for a one-year term. The Board of Directors has appointed Loranger as a member of its Audit committee.
“We are thrilled to have Steve join our Board of Directors,” said Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp. “His leadership experience and high level of personal and professional ethics, integrity and values will further strengthen the independence and quality of the FedEx Board.”
Before being named to his current position at ITT Corporation, a global, multi-industry engineering and manufacturing company, Loranger was executive vice president and chief operating officer of Textron, Inc., a global aircraft, industrial and finance company. Before joining Textron, Loranger held various executive positions at Honeywell International Inc. and its predecessor AlliedSignal, Inc., a technology and manufacturing company, including president and chief executive officer of Honeywell’s Engines, Systems and Services division. Loranger served as an officer and pilot in the United States Navy from 1975 to 1981. Loranger is a Phi Beta Kappa graduate of the University of Colorado, where he earned bachelor’s and master’s degrees in natural science.
Also today the shareowners:
-- Approved management's proposal to amend FedEx's certificate of incorporation and bylaws to eliminate all supermajority voting provisions.
-- Ratified the appointment of Ernst & Young LLP as FedEx's independent auditors for fiscal 2007.
-- Did not approve either of the two shareowner proposals:
-- A proposal requesting that FedEx provide for directors to be elected by majority vote, as opposed to the existing plurality standard.
-- A proposal requesting that FedEx report on the scientific and economic analyses relevant to the corporation's environmental policy concerning greenhouse gases.
Modernization of FedEx Express Aircraft Fleet
FedEx announced today a $2.6 billion, multi-year program to acquire and modify nearly 90 Boeing 757-200 aircraft to replace FedEx Express’s narrow-body fleet of Boeing 727-200 aircraft. Subject to identification of suitable 757 aircraft to purchase and the successful negotiation of agreements to purchase such aircraft, FedEx Express expects to bring the new aircraft into service during the eight-year period between calendar year 2008 and 2016.
Compared to the 727 aircraft, the 757 has a 20 percent greater payload capacity, and has an approximately 25 percent lower operating cost per pound. Replacing the older 727 aircraft with the more fuel efficient and quieter 757 aircraft will have the effect of significantly reducing operating costs over time and providing better aircraft utilization efficiencies. In addition, the program will help to reduce greenhouse gas emissions and airport noise. The program is expected to have very positive financial benefits upon completion and although startup costs will be incurred, they will not materially affect earnings. The capital impact of the program on the current fiscal year was included in the company’s recent first quarter earnings release. The total FedEx capital spending forecast for fiscal 2007 remains at $3.0 billion.
Certain statements in this press release may be considered “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to future events and financial performance. 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, our ability to identify suitable Boeing 757-200 aircraft to purchase and to successfully negotiate agreements to purchase such aircraft, as well as the other risks and uncertainties you can find in FedEx’s and its subsidiaries’ press releases and SEC filings, including the risk factors identified under the heading “Risk Factors” in “Management’s Discussion and Analysis of Results of Operations and Financial Condition” in FedEx’s most recent annual report on Form 10-K, as updated by FedEx’s quarterly reports on Form 10-Q.
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