Alan Graf Quotations

We're 25 cents a gallon above the point where we raised our surcharge to 4 percent.

This quarter's results reflect the competitive strength of our diversified and expanded portfolio of services, as well as outstanding expense management across all our companies,

We're proud of our fourth quarter, and we're back.

Market conditions have deteriorated more than we anticipated, as reflected by numerous news accounts of earnings warnings and layoffs, particularly in the auto and high-tech sectors. Volume growth, yield growth and weights for February dropped noticeably for all of our operating units.

We intend to continue to manage the company's cost structure to remain profitable in the second quarter and the remainder of fiscal 2002,

We exceeded our original forecast for the second quarter due to outstanding operational performance and the deferral of certain advertising and promotional expenses to the second half of the fiscal year.

We have not seen the global economy improve and we're not expecting it to in the (fiscal) first quarter or maybe the 2Q as well,

Volume growth accelerated at the end of (the second quarter) and has continued to accelerate in quarter three.

We believe our product offerings are complementary. We have virtually no presence in the lightweight preferred market, so we don't really compete with the postal service there,

What we are most concerned with at FedEx is volume growth that provides a compensatory returns, ... I'm not as enamored with market share for market share sake as some people who like to write about it.

We do not think there is a mode shift (from air to ground shipments, ... We believe that the express-intensive businesses are the ones that have been punished the most in the recession and the slow recovery.

Continuing weak economic conditions, particularly in the high-tech and durable goods sectors sharply reduced demand for our express services.

Continued good strong cost management will be implemented in the fourth quarter,

Profitability is improving, ... By operating each of the FDX subsidiaries independently to compete in distinct market segments, we bring the most appropriate services and cost structure to each customer segment.

Deteriorating economic conditions and the rapid decline in the high-tech and other durable goods industries have increasingly affected FedEx Express volumes,