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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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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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2023 Q2
22 Dec 22
Second quarter adjusted expenses were essentially flat year-over-year as inflation impacts, particularly fuel, offset our activity reductions on an absolute basis.
As we move through the second half, we project year-over-year expenses to increasingly decline as our cost initiatives accelerate in conjunction with lapping certain inflationary increases.
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2023 Q2
22 Dec 22
On a quarterly basis, we expect results to follow our historical seasonal pattern with lower earnings in the third quarter versus the second quarter and highest in the fourth quarter.
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2023 Q2
22 Dec 22
Our current expectation for full year adjusted earnings per share is between $13 and $14.
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2023 Q2
22 Dec 22
we expect business conditions to remain challenging in the second half of FY '23
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2023 Q2
22 Dec 22
With the lower demand environment, we're deliberately deferring and slowing the pace of projects
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2023 Q2
22 Dec 22
we are also lowering our FY '23 capital spend forecast by an incremental $400 million to $5.9 billion, which represents an approximate $900 million reduction from our initial plans for the year.
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2023 Q2
22 Dec 22
we've identified $3.7 billion in discrete cost reductions relative to our plans going into fiscal '23, which is $1 billion higher than our prior projection. Express is where we have the most work to do and where the majority of the reductions are focused.
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2023 Q2
22 Dec 22
In Ground, operating income increased 24% and operating margins expanded 130 basis points to 7.1%
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2023 Q2
22 Dec 22
Express, profitability continues to be pressured. Adjusted operating income declined 65% due to lower volumes as cost reductions lagged accelerating volume declines
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2023 Q2
22 Dec 22
We have moved faster to offset this shortfall with cost reductions, reducing the lag between incremental volume softness and the savings offsets realized. This, combined with an additional $200 million in discrete cost actions, led to improved earnings relative to our Q2 outlook.
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2023 Q2
22 Dec 22
Second quarter revenue was approximately $700 million below the lower end of the range we expected coming into the quarter. Approximately $300 million of this variance was due to an accelerated decline in forwarding revenue at FedEx Logistics. The remaining variance versus our Q2 outlook was driven about half by Express and the balance by Ground and Freight combined.
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2023 Q2
22 Dec 22
In Q2, we achieved over $900 million of savings, exceeding the cost target we shared with you last quarter. This brings our total year-to-date progress to $1.2 billion.
As we look to the remainder of the fiscal year, we have identified additional savings, bringing our target for fiscal year '23 to be approximately $3.7 billion in cuts.
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2023 Q2
22 Dec 22
ground service is now back to pre-pandemic levels
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2023 Q2
22 Dec 22