FedEx Ground

Quarterly revenue—at $22.2 billion—was down 2.6% annually, and operating income—at $1.42 billion—increased 14.8%. Net income, at $1.01 billion, topped the $820 million recorded for the same quarter a year ago. Adjusted earnings per share came in at $3.99, up 20% annually while falling short of Wall Street expectations, at $4.19.

FedEx described this consolidation as a phased transition that will subsequently bring nearly all of its operating companies—FedEx Express, FedEx Ground, FedEx Services, as well as other FedEx operating companies—into Federal Express Corporation, and transition into what it called a single company operating a unified, fully integrated air-ground network. And it also noted that its less-than-truckload subsidiary, FedEx Freight, will remain as a standalone operation within Federal Express Corporation.  

After stating in July that it was preparing to cut down on its Sunday delivery services in remote and rural areas of the United States, from 95% to 80% of the U.S. population, Memphis-based global freight transportation and logistics services provider FedEx is now reducing its Sunday delivery footprint to around 50% of the country, according to various reports.

Late last week, a Reuters report stated that the FedEx Ground subsidiary of Memphis-based global freight transportation and logistics services provider FedEx is expecting lower volumes, reflecting how its customers anticipate shipping fewer holiday packages.

Quarterly revenue—at $22 billion—increased 6% annually, and operating income—at $1.23 billion—fell 17.4% annually, with adjusted net income—at $905 million—falling 23.9%. Diluted earnings per share—at $3.44—was down 21.3% and short of Wall Street estimates of $5.48.

Memphis-based FedEx said that as economic conditions have shifted, it is making operational adjustments to suspend Sunday delivery operations in certain low-density, rural markets, effective the week of Aug. 15.

Quarterly revenue—at $23.5 billion—was up 14% annually, and operating income—at $1.6 billion—rose 9% annually. Diluted earnings per share—at $4.83—were flat, exceeding of Wall Street expectations of $4.28.

Quarterly revenue—at $22 billion—saw a 14% annual increase, and operating income—at $1.398 billion—slipped 12% annually. Diluted earnings per share—at $4.09—were off 13%, falling short of Wall Street expectations of $4.89.

Memphis-based global freight transportation and logistics services provider FedEx recently announced new peak surcharges and fees for its U.S. Express and Ground services and Ground International.

Data recently provided to LM by ShipMatrix, a subsidiary of Pittsburgh-based SJ Consulting, pointed to mixed on-time performance (OTP) ranges, in June, for major parcel carriers, including UPS, FedEx, and the United States Postal Service (USPS).

FY 2022 full-year revenue rose 17.6% annually, and operating income climbed 46.8% annually. For the fiscal fourth quarter, revenue rose 23% annually, and operating income headed up 278%. Earnings per share (topping Wall Street expectations of $5.02 per share) well outpaced the $1.28 per share recorded a year ago, as well as a $334 million loss.

The company said that in order to provide its customers with the best possible service during this challenging time, these surcharge increases are being implemented

Logistics Management Group News Editor Jeff Berman recently spoke with Bonnie Voldeng, VP, FedEx Freight Direct, the company's last-mile and e-commerce-focused service that handles the delivery of bulky items like furniture, televisions, and exercise equipment, among other items. From FY19 to FY20, FedEx Freight’s e-commerce portfolio saw a 71% annual volume increase, including FedEx Freight Direct.

The top carriers learned how to adapt, improvise and improve over the pandemic-dominated year. While harmful for some, the situation has proven to be transformative for others. Here are the secrets of how top carriers are staying ahead of the pack.

Quarterly revenue—at $21.5 billion—rose 18.6% annually, and operating income—at $1.06 billion far outpaced the $483 million reported for the same period last year. Adjusted earnings per share—at $3.47—climbed 146% annually, and beat Wall Street expectations, of $3.21 per share.