FedEx Freight

Quarterly revenue, at $23.5 billion, increased 7% annually, and operating income, at $1.38 billion, was up 31%. Earnings per share, at $4.82, beat Wall Street expectations, at $4.02.

The $66 billion less-than-truckload (LTL) market is facing a turbulent year, with tariffs and economic uncertainty significantly impacting profitability. Analysts predict a challenging environment for LTL carriers, who are dealing with supply constraints, changes to the National Motor Freight Classification (NMFC), and increasing pressure on pricing strategies.

The company said that John A. Smith, chief operating officer, U.S. and Canada, of Federal Express, has been selected to serve as the president and CEO of FedEx Freight, and R. Brad Martin, vice chairman of the FedEx Corp. board of directors, has agreed to serve as chairman of the board of FedEx Freight.

Quarterly revenue, at $22.16 billion, increased 2% annually, and operating income, at $1.29 billion, rose 4%. Earnings per share, at $4.51, fell short of Wall Street expectations, at $4.56.

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Memphis-based global freight transportation and logistics services provider FedEx recently announced that Lance Moll, president of the company’s less-than-truckload (LTL) subsidiary, FedEx Freight, will retire from his position, effective January 31, at which point shift to an executive advisor role.

In its fiscal second quarter earnings announcement issued earlier today, Memphis-based global freight transportation and logistics services provider FedEx said that the company’s Board of Directors, following a review of the role of its less-than-truckload (LTL) subsidiary, FedEx Freight, in its portfolio, has elected to make a push to fully separate the unit into a new publicly-traded company.

FedEx reported fiscal fourth-quarter earnings per share of $5.41 from sales of $22.1 billion. That was ahead of Wall Street’s estimates for EPS of $5.34 and sales of $22 billion. While those results were solid, FedEx then added a trucking-industry megaton explosion in its news release. That’s when it disclosed it was “conducting an assessment of the role of FedEx Freight in the company’s portfolio structure and potential steps to further unlock sustainable shareholder value.”

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 Freight, the less-than-truckload (LTL) subsidiary of Memphis-based global freight transportation and logistics services provider FedEx said on Monday it will close 29 freight locations and consolidate its operations into other locations, effective August 13, 2023.

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.  

Quarterly revenue—at $22.2 billion—was off 6% annually, and net income—at $865 million was below the $1.22 billion recorded a year ago. Diluted earnings per share—at $3.41—fell 7.4%.

Earlier this week, FedEx Freight, the less-than-truckload (LTL) subsidiary of Memphis-based global freight transportation and logistics services provider FedEx, said it has expanded its FedEx Freight Direct e-commerce offering for big and bulky items.

Various reports issued this week indicated that FedEx Freight, the less-than-truckload (LTL) subsidiary of Memphis-based global freight transportation and logistics services provider FedEx, will begin furloughing employees early next month, in order to be in line with lower-than-expected levels of demand.

FedEx Freight, the less-than-truckload subsidiary of global logistics and freight transportation services provider FedEx, announced it is rolling out a new pilot initiative, which it described as an industry changing space and pace pricing pilot for select customers.