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We've achieved our target of $1.8 billion in structural cost-out in FY '24 with approximately $500 million from air network and international, $550 million of G&A, and $750 million from surface networ
1.8 billion of c ost out in 2024
Transcript
2024 Q4
28 Jun 24
We have over $1 billion of health care-related revenue that comes from customers who utilize FedEx Surround. The FedEx Surround platform provides insights to help our customers monitor and solve their supply chain challenges. Surround gives customers real-time visibility into their shipments by combining information about the package with external data such as weather to predict delivery timeliness and to mitigate the risk of disruption.
Another critical element of our health care strategy is our ability to demonstrate our high reliability and our ability to meet customer quality agreements. The quality agreement is essentially a customized standard operating procedure for critical health care shipments. In fiscal '24, we signed new quality agreements for customers tied to over $500 million in revenue.
As we expand our health care portfolio, we'll continue to focus on high-value areas like clinical trials. Earlier this month, in the Netherlands, we opened our first European Life Sciences Center. This state-of-the-art cooling facility is the sixth of its kind in our global network, offering an end-to-end supply chain solution for temperature-sensitive medical storage and transport.
In addition to the tremendous work with our health care customers,
healthvcare expanding
Transcript
2024 Q4
26 Jun 24
e do think e-commerce is going to outpace the B2B growth
e-commerece stronger
Transcript
2024 Q4
26 Jun 24
A question, sort of the low to mid-single digit revenue growth that you talked about for the year, is there a way to think about the blend between the yield and volume? Is it [ 2 and 2 ], something along those lines? And then just sort of along those lines, I think you gave some color around B2B volumes for demand of up 2% or so. I'm just sort of wondering, with retailers maybe doing more of this just-in-time focus these days, does that sort of play into B2B and fast-cycle logistics companies like FedEx?
Brie Carere
Yes. Great question, Jordan.
So as we think about this year's revenue plan, you will see it be largely volume-driven, and it will be driven from a deferred and an e-commerce perspective.
As we have just mentioned, we do think e-commerce is going to outpace the B2B growth. To your point, from a speed perspective, we are actually seeing the speed conversation elevate in the market, especially with what we would consider sort of your Tier 1 or your household brand.
From a competition perspective, we're absolutely increasing that conversation. Actually, there was increased demand from a speed perspective within it.
So I hope that gives you a little bit more clarity, but we do see volume moving throughout the year.
volume improvrinhg
Transcript
2024 Q4
26 Jun 24
And as Brie mentioned, we expect a modest improvement in the demand environment in FY '25 and supporting our revenue outlook of a low to mid-single-digit percentage increase as we noted.
modest improvement in demand
Transcript
2024 Q4
26 Jun 24
Just in the context of your revenue assumptions, just curious if you could frame up some of the moving parts.
Just maybe on when you expect volumes to inflect positive? And then just any of the -- and this doesn't seem like a macro-driven plan, but just any of your assumptions around the macro environment, what you need to see there to kind of see volumes perk up?
Brie Carere
Sure. Thanks, Conor. It's Brie. From a macro perspective, we are expecting sort of moderate improvement as we work our way through this fiscal year.
As we look at kind of the subsegments of our business, from a B2B perspective, we are forecasting the overall B2B market to be around 2% growth. E-commerce will be ahead of that, as you've just seen. E-commerce reset is somewhat done when we just looked at e-commerce as a percentage of retail and in calendar year Q1, we actually were up 1% year-over-year.
So we do like the fundamentals from an e-commerce perspective that will help us here in the United States and around the world.
And then from an air cargo perspective, we are looking at the growth in the market around 4%.
So as we work through the year, we do expect there to be modest improvement.
We are forecasting that we will have to take some small market share in our profitable target segment. And we feel really good about the plan as we move forward through the year.
volume positive ?
Transcript
2024 Q4
26 Jun 24
We expect FY '25 yields to benefit from both improved base rates and increased fuel surcharges. And consistent with what we have seen over the past year, we're anticipating a pricing environment that is competitive but rational.
pricing environment
Transcript
2024 Q4
26 Jun 24
Starting with revenue, we expect low to mid-single-digit growth, driven by improving trends in U.S. domestic parcel and international export demand. The primary factors that will ultimately determine our revenue growth are: the rate of yield expansion, the pace of global industrial production, and growth of domestic e-commerce.
25 assumptions
Transcript
2024 Q4
26 Jun 24
Looking ahead, in fiscal year '25, we expect the demand environment to moderately improve as we move through the year. Currently, we expect U.S. domestic parcel and LTL volumes to continue to improve, with the year-over-year increase growing as the year progresses. International air cargo demand from Asia accelerated in early May and is stronger versus previous expectations.
volumes to improve
Transcript
2024 Q4
26 Jun 24
Volumes continue to stabilize. In U.S. domestic package, year-over-year volume declines continued to moderate. International export package volume increased 8% in the quarter, driven by International Economy, largely consistent with the monthly trends we saw last quarter.
Our continued focus on reliable service at Ground drove volume improvement in Ground commercial. FedEx Freight shipments inflected positive as the quarter progressed as we lapped last year's demand softness.
volume declines moderating
Transcript
2024 Q4
26 Jun 24
On top of all this, we have seen now the market demand weakened primarily because of slowdown of industrial production across the world, which has impacted our International Express Freight business as well.
ind economy weak
Transcript
2024 Q2
16 Jan 24
Our focused execution enabled us to retain a majority of the high-quality volume we won over the summer from UPS and as a result of the Yellow shutdown.
keeping ups/yellow volume
Transcript
2024 Q2
9 Jan 24
At this midpoint of the range, we're now assuming a low single-digit percentage decline in revenue. This is lower than our previous assumption of flat revenue growth.
lower fy rev guidance
Transcript
2024 Q2
3 Jan 24
As we look to the second half of the year, we expect volume declines to begin moderating in Express and Ground by the end of the third quarter with comparisons easing further in the fourth quarter as we lap the onset of softer volumes.
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Transcript
2023 Q2
23 Dec 22
Volumes declined across all segments, primarily at Express down low double digits.
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2023 Q2
23 Dec 22
FedEx Freight due to operating margin improved 320 basis points due to the continued focus on revenue quality
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2023 Q2
23 Dec 22
The trends we saw toward the end of the first quarter persisted through November.
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2023 Q2
23 Dec 22
the volume declines, we expect those to moderate as we move through the rest of the year
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2023 Q2
22 Dec 22
In Europe, we're making steady progress as volume trends improved quarter-over-quarter.
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2023 Q2
22 Dec 22
, we were able to grow both operating income and margin
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Transcript
2023 Q2
22 Dec 22