Latest news with #FedExFreight
Yahoo
22-07-2025
- Business
- Yahoo
FedEx Freight gives shippers ‘more time' to adjust to new LTL class rules
The nation's largest less-than-truckload carrier, FedEx Freight, is delaying enforcement of a new set of freight classification rules until Dec. 1. The National Motor Freight Traffic Association (NMFTA), a nonprofit trade group, rolled out final updates to its decades-old freight classification ratings on Saturday. The revisions are moving the industry toward a density-based coding system that is expected to more accurately align actual carrier costs with pricing. For months, the NMFTA, carriers and 3PLs have been working to help shippers prepare for the changes to the 90-year-old National Motor Freight Classification (NMFC) system. The advice to shippers has been: 'know your freight.' Shippers are now tasked with better understanding the full dimensions of their shipments, not just the weights. The more information provided upfront, the more accurate shipment pricing is likely to be, experts say. However, FedEx Freight (NYSE: FDX) said it is giving its customers 'more time to adjust.' 'Since several commodities are moving to density-based classification, it's more important than ever for shippers to accurately record shipments' density, weight, and dimensions. If you ship these types of commodities, the density will determine the classification,' a statement on the company's website said. The carrier also cautioned that future charges may apply for incomplete details on a bill of lading. 'Once the changes are fully adopted, FedEx Freight may apply an inspection surcharge (Item 980, Item 981) for shipments with incomplete or inaccurate information listed on the BOL.' FreightWaves has reached out to FedEx for comment. More FreightWaves articles by Todd Maiden: New LTL freight class rules take effect on Saturday ArcBest CEO Judy McReynolds to retire J.B. Hunt still waiting for market to turn The post FedEx Freight gives shippers 'more time' to adjust to new LTL class rules appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
27-06-2025
- Business
- Yahoo
FedEx Freight announces C-suite leadership for spinoff
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. FedEx Freight, an LTL segment slated for a spinoff next year, is filling out its C-suite. The business detailed longtime FedEx leaders who will take over oversight of the new company and also announced an outsider as part of the mix, according to FedEx CEO and President Raj Subramaniam in an earnings call this week and an investor presentation. Those seasoned staff and their new roles are: Eddie Klank as chief human resources and legal officer. Klang has nearly three decades with FedEx, including most recently as corporate VP for corporate governance securities and tax law. Mike Lyons as the chief specialized services and commercial officer. He's been with FedEx for nearly two decades, most recently as SVP of custom critical and freight strategy, per his LinkedIn profile. Clint McCoy as chief operating officer. With nearly three decades at the company, his positions have ranged from operations supervisor to SVP of operations support and engineering. Departing from that internal hiring trend, the business recently hired Michael Rodgers as chief technology officer, the company said. He recently served as CTO for Pilot Flying J and has a background in retail and finance. As previously announced, former FedEx Freight President and CEO John Smith is returning to the role. He currently leads the LTL business along with U.S. and Canada ground operations for Federal Express. R. Brad Martin, who became chair of FedEx's board following the death of Fred Smith on June 21 at age 80, will also serve as chair of the FedEx Freight board. Recommended Reading FedEx Freight operating income drops 6%
Yahoo
26-06-2025
- Business
- Yahoo
FedEx Freight operating income drops 6%
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. FedEx Freight noted LTL market weakness persisting, notably in the industrial sector, for quarterly results released Tuesday. 'We have not seen a marked improvement in the industrial economy,' EVP and Chief Customer Officer Brie Carere said on an earnings call. Operating income for the segment fell 6% to $477 million, according to an investor presentation, as the business noted lower fuel surcharges, reduced weight per shipment, higher costs for staff wages and benefits, and one fewer operating day. FedEx Freight LTL shipments were flat year over year in March, down 2% YoY in April and down 1% YoY in May, the presentation reported. Nevertheless, a 'better-than-expected May more than offset a softer than expected April,' Carere said. The improvement for the quarter helped deliver the best operating margin over the past 12 months with a 20.8% operating margin. That was a slight slip from the 21.2% operating margin YoY, though. The segment also posted revenue that beat expected analyst projections, $144 million higher than Bank of America Global Research's forecast. FedEx Freight, aiming for a spinoff in June 2026, also sold a facility that gave the business a $33 million gain, according to the presentation. The property wasn't identified, but parking and freight network Outpost recently acquired a 27-acre FedEx terminal in Dallas. The site features a 154-door cross-dock, a 9-bay drive-thru maintenance shop, 800 marked parking spots and office space, the trucking service startup said in a news release. FedEx Freight has hundreds of terminals but has reconfigured operations throughout parts of the U.S. and also sold off property. That's given competitors, such as Knight-Swift Transportation Holdings's growing LTL network, some opportunities to expand. Recommended Reading LTL carriers see tonnage drop amid low shipper demand Sign in to access your portfolio
Yahoo
25-06-2025
- Business
- Yahoo
FedEx fills out Freight executive team ahead of spin off
FedEx management on Tuesday announced several more appointments to run FedEx Freight, the less-than-truckload giant that is scheduled to be spun off as an independent, publicly traded company next spring. In May, the company named John Smith, the chief operating officer of Federal Express (U.S. and Canada) as president and CEO of FedEx Freight and Brad Martin as the trucking company's chairman. Smith will remain in his current role until the separation occurs. During an earnings call with analysts, CEO Raj Subramaniam said Clint McCoy, who's worked at FedEx Freight for nearly 30 years, will be chief operating officer. Michael Rogers was named the trucking company's chief technology officer, having previously worked in a similar role at trucking fuel supplier and travel center operator Pilot Company. Prior to Pilot, Rogers held retail leadership positions at Saks Fifth Avenue and JC Penney. Eddie Clang, the current vice president for corporate governance, securities and tax law, will serve as chief human resources and legal officer of FedEx Freight. And Mike Lyon, who has worked at FedEx Trade Networks, the supply chain management arm, since 2007, will serve as chief specialized services and commercial officer. FedEx (NYSE: FDX) continues to build out a dedicated sales force for Freight. Revenue at the largest less-than-truckload carrier in the nation fell 4% to $2.9 billion in the fiscal year fourth quarter due to lower fuel surcharges, reduced weight per shipment, higher healthcare costs and increased wage rates, FedEx reported. The primary challenge, however, is continued weakness in the industrial sector. Operating income was down 6%. The division made a $33 million gain on the sale of a terminal, which accounted for nearly a third of the earnings beat Year-over-year volume declines moderated sequentially, with average daily shipments down 1% in the fourth quarter compared to down 5% in the third quarter and down 8% in the second quarter. Average daily shipments actually increased 8.3% sequentially, representing the largest Q4 over Q3 since fiscal year 2021. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. FedEx navigates tariff swings to modest profit gain FedEx retires a dozen freighter aircraft in efficiency move FedEx taps leaders from within for LTL spinoff, to Wall Street's dismay The post FedEx fills out Freight executive team ahead of spin off appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
25-06-2025
- Business
- Yahoo
FedEx: Controlling What It Can
FedEx beat Wall Street estimates, using cost control to grow earnings at a faster rate than revenue. The company expects to take an additional $1 billion in costs out in its new fiscal year and remains on track to spin off its trucking unit by next summer. Near-term volume issues are unlikely to be resolved quickly, as tariffs remain subject to continued negotiation. 10 stocks we like better than FedEx › Here's our initial take on FedEx's (NYSE: FDX) financial report. Metric Q4 FY24 Q4 FY25 Change vs. Expectations Revenue $22.1 billion $22.2 billion 0.5% Beat Adjusted EPS $5.41 $6.07 12% Beat Operating margin 8.5% 9.1% 60 bp n/a Operating income $1.87 billion $2.02 billion 8% n/a EPS = earnings per share. BP = basis points. FedEx and other shipping companies have been navigating through traffic in recent quarters. Fears of a slowing economy and, more recently, uncertainty about tariffs have caused large customers to pull back on shipping, depressing demand and volumes. FedEx is controlling what it can, topping consensus expectations and posting 8% operating income and 12% adjusted earnings-per-share growth despite flat year-over-year revenue. The company said that cost benefits from its ongoing DRIVE restructuring initiative, coupled with increased U.S. and international export volume, and a higher yield base helped to drive improvement to operating results. Operating margin increased by 60 basis points year over year to 9.1%. This marks the end of FedEx's fiscal year. The company said it returned $4.3 billion to stockholders in its fiscal 2025 through stock repurchases and dividends, continuing a campaign that has pushed FedEx's share count down by 8% over the past five years. The earnings report comes just days after the passing of Fred Smith, FedEx's founder and executive chairman. CEO Raj Subramaniam led the earnings release with a tribute to Smith, saying "his legacy of innovation, leadership, and philanthropy will continue to inspire future generations." Current director R. Brad Martin was named the new board chair. The results suggest that the macro headwinds that have plagued FedEx so far in 2025 are likely to continue in the months ahead. Shares of FedEx, already down 16% year to date heading into earnings, were down another 4% in aftermarket trading following the release but ahead of the company's call with investors. FedEx is forecasting fiscal first-quarter revenue to be flat to up 2% and forecasted earnings of between $3.40 and $4.00. Even at the top end of that range, that is a disappointment relative to Wall Street's $4.03-per-share consensus estimate. The company is targeting an additional $1 billion in cost cuts in the new fiscal year but held off on providing any firm revenue or earnings guidance for the next four quarters. It also remains on track to separate its FedEx Freight trucking business by mid-2026. The outlook could get less clear before it improves. We are now just weeks away from the July 9 deadline for the U.S. to reach trade deals with Europe. With so much uncertainty about the direction of tariffs, it is unlikely that large FedEx customers will boost demand for shipping services any time soon. FedEx remains stuck in traffic, with few opportunities to accelerate ahead. Full earnings report Investor relations page Before you buy stock in FedEx, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and FedEx wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $689,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $906,556!* Now, it's worth noting Stock Advisor's total average return is 809% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends FedEx. The Motley Fool has a disclosure policy. FedEx: Controlling What It Can was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
