FDX FedEx Corp

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): December 19, 2023

 

FedEx Corporation

(Exact name of registrant as specified in its charter)

 

Commission File Number 1-15829

 

Delaware		62-1721435
(State or other jurisdiction of		(IRS Employer
incorporation)		Identification No.)
942 South Shady Grove Road, Memphis, Tennessee		38120
(Address of principal executive offices)		(ZIP Code)

 

Registrant’s telephone number, including area code: (901) 818-7500

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, par value $0.10 per share		FDX		New York Stock Exchange
0.450% Notes due 2025		FDX 25A		New York Stock Exchange
1.625% Notes due 2027		FDX 27		New York Stock Exchange
0.450% Notes due 2029		FDX 29A		New York Stock Exchange
1.300% Notes due 2031		FDX 31		New York Stock Exchange
0.950% Notes due 2033		FDX 33		New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

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EXPLANATORY NOTE

The information in this Report, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and General Instruction B.2 thereunder. Such information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

SECTION 2. FINANCIAL INFORMATION.

Item 2.02. Results of Operations and Financial Condition.

Attached as Exhibit 99.1 and incorporated herein by reference is a copy of FedEx Corporation’s press release, dated December 19, 2023, announcing its financial results for the fiscal quarter ended November 30, 2023.

SECTION 9. FINANCIAL STATEMENTS AND EXHIBITS.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit Number		Description
99.1		Press Release of FedEx Corporation dated December 19, 2023.
104		Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).

 

 

 

 

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

		FedEx Corporation
Date: December 19, 2023		By:		/s/ Guy M. Erwin II
				Guy M. Erwin II
				Staff Vice President, Corporate Controller,
				and Interim Principal Accounting Officer

 

 

 

 

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EXHIBIT INDEX

 

Exhibit Number		Description
99.1		Press Release of FedEx Corporation dated December 19, 2023.
104		Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).

 

 

 

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Exhibit 99.1

 

 

 

FedEx Reports Higher Second Quarter Diluted EPS of $3.55

and Adjusted Diluted EPS of $3.99

Updates Full-Year Fiscal 2024 Earnings Outlook and

Confirms Full-Year Fiscal 2024 Adjusted Earnings Outlook

 

MEMPHIS, Tenn., December 19, 2023 ... FedEx Corp. (NYSE: FDX) today reported the following consolidated results for the second quarter ended November 30 (adjusted measures exclude the items listed below):

 

		Fiscal 2024				Fiscal 2023
		As Reported (GAAP)		Adjusted (non-GAAP)		As Reported (GAAP)		Adjusted (non-GAAP)
Revenue		$22.2 billion		$22.2 billion		$22.8 billion		$22.8 billion
Operating income		$1.28 billion		$1.42 billion		$1.18 billion		$1.21 billion
Operating margin		5.8%		6.4%		5.2%		5.3%
Net income		$0.90 billion		$1.01 billion		$0.79 billion		$0.82 billion
Diluted EPS		$3.55		$3.99		$3.07		$3.18

 

This year’s and last year’s quarterly consolidated results have been adjusted for:

 

Impact per diluted share		Fiscal 2024		Fiscal 2023
Business optimization costs		$0.44		$0.11

 

Second quarter income and margin improved despite lower revenue, with consolidated operating income up 9% and adjusted operating income up 17%, primarily due to the execution of the company's DRIVE program, and continued focus on service and revenue quality.

 

“FedEx has delivered an unprecedented two consecutive quarters of operating income growth and margin expansion even with lower revenue, clear evidence of the progress we are making on our transformation as we navigate an uncertain demand environment,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “We are moving with speed to make our network more efficient while delivering outstanding service to our customers through the peak season with the fastest Ground network in the industry. I am confident in our strategy as we make our global network more flexible, efficient, and intelligent.”

 

FedEx Ground operating income increased primarily due to yield improvement, cost reductions, and higher volumes. Cost per package declined 2%, driven by lower line-haul expense and improved first- and last-mile productivity.

 

FedEx Freight operating income increased despite a decline in revenue. The profit increase was driven by higher yield and increased efficiency, partially offset by lower shipments.

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FedEx Express operating income declined due to lower revenue, partially offset by reduced operating expenses. The revenue decrease was driven by volume declines, lower fuel surcharges, reduced demand surcharges, and a mix shift toward lower-yielding services.

 

The company completed a $500 million accelerated share repurchase (ASR) transaction during the quarter. Approximately 2.0 million shares were delivered under the ASR agreement. The year-to-date decrease in outstanding shares benefited second quarter results by $0.05 per diluted share. FedEx expects to repurchase an additional $1.0 billion of common stock during fiscal 2024. Cash on-hand as of November 30, 2023 was $6.7 billion.

 

“With demand continuing to pressure the top-line, we are pleased with our ability to deliver stronger operating leverage and improved profitability, enabling us to maintain our fiscal year adjusted earnings outlook,” said John Dietrich, FedEx Corp. executive vice president and chief financial officer. “These results are a testament to DRIVE initiatives taking hold, where we are focused on improving margins and driving long-term returns for our stockholders.”

 

Outlook

 

FedEx is unable to forecast the fiscal 2024 mark-to-market (MTM) retirement plans accounting adjustments. As a result, FedEx is unable to provide a fiscal 2024 earnings per share or effective tax rate (ETR) outlook on a GAAP basis and is relying on the exemption provided by the Securities and Exchange Commission. It is reasonably possible that the fiscal 2024 MTM retirement plans accounting adjustments could have a material effect on fiscal 2024 consolidated financial results and ETR.

 

For fiscal 2024, FedEx expects:

 

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These forecasts assume the company's current economic forecast and fuel price expectations, successful completion of the planned stock repurchases, and no additional adverse geopolitical developments. FedEx’s ETR and earnings per share forecasts are based on current law and related regulations and guidance.

 

Corporate Overview

 

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $88 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally as one FedEx. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 500,000 employees to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about.

 

Additional information and operating data are contained in the company’s annual report, Form 10-K, Form 10-Qs, Form 8-Ks and Statistical Books. These materials, as well as a webcast of the earnings release conference call to be held at 5:30 p.m. EST on December 19, are available on the company’s website at investors.fedex.com. A replay of the conference call webcast will be posted on our website following the call.

 

The Investor Relations page of our website, investors.fedex.com, contains a significant amount of information about FedEx, including our Securities and Exchange Commission (SEC) filings and financial and other information for investors. The information that we post on our Investor Relations website could be deemed to be material information. We encourage investors, the media and others interested in the company to visit this website from time to time, as information is updated and new information is posted.

 

Certain statements in this press release may be considered forward-looking statements, such as statements regarding expected cost savings, the planned consolidation of operating companies, future financial targets, business strategies, management’s views with respect to future events and financial performance, and the assumptions underlying such expected cost savings, targets, strategies, and statements. Forward-looking statements include those preceded by, followed by or that include the words “will,” “may,” “could,” “would,” “should,” “believes,” “expects,” “forecasts,” “anticipates,” “plans,” “estimates,” “targets,” “projects,” “intends” or similar expressions. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such

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forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate; our ability to successfully implement our business strategy and global transformation program and consolidate our operating companies into one organization, effectively respond to changes in market dynamics, and achieve the anticipated benefits of such strategies and actions while managing related risks; our ability to achieve our cost reduction initiatives and financial performance goals; the timing and amount of costs related to our global transformation program and other ongoing initiatives; damage to our reputation or loss of brand equity; changes in the business or financial soundness of the U.S. Postal Service or its relationship with FedEx, including strategic changes to its operations to reduce its reliance on the air network of FedEx Express; our ability to meet our labor and purchased transportation needs while controlling related costs; a significant data breach or other disruption to our technology infrastructure; anti-trade measures and additional changes in international trade policies and relations; the effect of any international conflicts or terrorist activities; the impact of a widespread outbreak of an illness or any other communicable disease or public health crises; changes in fuel prices or currency exchange rates; our ability to match capacity to shifting volume levels; the effect of intense competition; an increase in self-insurance accruals and expenses; failure to receive or collect expected insurance coverage; our ability to effectively operate, integrate, leverage, and grow acquired businesses and realize the anticipated benefits of acquisitions and other strategic transactions; noncash impairment charges related to our goodwill and certain deferred tax assets; the future rate of e-commerce growth and levels of inventory restocking; evolving or new U.S. domestic or international laws and government regulations, policies, and actions; future guidance, regulations, interpretations, challenges, or judicial decisions related to our tax positions; legal challenges or changes related to service providers engaged by FedEx Ground and the drivers employed by them and the coverage of U.S. employees at FedEx Express under the Railway Labor Act of 1926, as amended; our ability to quickly and effectively restore operations following adverse weather or a localized disaster or disturbance in a key geography; any liability resulting from and the costs of defending against litigation; our ability to achieve or demonstrate progress on our goal of carbon-neutral operations by 2040; and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with the SEC. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

 

Media Contact: Caitlin Adams Maier 901-434-8100

Investor Contact: Stephen Hughes 901-818-7471

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RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

TO GAAP FINANCIAL MEASURES

 

Second Quarter Fiscal 2024 and Fiscal 2023 Results

 

The company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or “reported”). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP (or “adjusted”) financial measures, including our adjusted second quarter fiscal 2024 and 2023 consolidated operating income and margin, net income and diluted earnings per share, adjusted second quarter fiscal 2024 FedEx Express and FedEx Ground segment operating income and margin and adjusted second quarter fiscal 2023 FedEx Express segment operating income and margin. These financial measures have been adjusted to exclude the effects of business optimization costs incurred in fiscal 2024 and 2023.

 

In fiscal 2023, FedEx announced DRIVE, a comprehensive program to improve the company’s long-term profitability. This program includes a business optimization plan to drive efficiency among our transportation segments, lower our overhead and support costs, and transform our digital capabilities. We incurred costs associated with our business optimization initiatives in the second quarter of fiscal 2024 and fiscal 2023. These costs were primarily related to professional services and severance. Business optimization costs are included in Corporate, other, and eliminations, FedEx Ground, and FedEx Express. Costs related to business optimization initiatives are excluded from our second quarter fiscal 2024 and 2023 consolidated and FedEx Express and FedEx Ground segment non-GAAP financial measures, as applicable, because they are unrelated to our core operating performance and to assist investors with assessing trends in our underlying businesses.

 

We believe these adjusted financial measures facilitate analysis and comparisons of our ongoing business operations because they exclude items that may not be indicative of, or are unrelated to, the company’s and our business segments’ core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. These adjustments are consistent with how management views our businesses. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating the company’s and each business segment’s ongoing performance.

 

Our non-GAAP financial measures are intended to supplement and should be read together with, and are not an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of our financial statements should not place undue reliance on these non-GAAP financial measures. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. As required by SEC rules, the tables below present a reconciliation of our presented non-GAAP financial measures to the most directly comparable GAAP measures.

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Fiscal 2024 Earnings Per Share and Effective Tax Rate Forecasts

 

Our fiscal 2024 earnings per share (EPS) forecast is a non-GAAP financial measure because it excludes fiscal 2024 mark-to-market (MTM) retirement plans accounting adjustments and estimated costs related to business optimization initiatives in fiscal 2024. Our fiscal 2024 effective tax rate (ETR) forecast is a non-GAAP financial measure because it excludes the effect of fiscal 2024 MTM retirement plans accounting adjustments.

 

We have provided these non-GAAP financial measures for the same reasons that were outlined above for historical non-GAAP measures. Costs related to business optimization initiatives are excluded from our fiscal 2024 EPS forecast for the same reasons described above for historical non-GAAP measures.

 

We are unable to predict the amount of the MTM retirement plans accounting adjustments, as they are significantly affected by changes in interest rates and the financial markets, so such adjustments are not included in our fiscal 2024 EPS and ETR forecasts. For this reason, a full reconciliation of our fiscal 2024 EPS and ETR forecasts to the most directly comparable GAAP measures is impracticable. It is reasonably possible, however, that our fiscal 2024 MTM retirement plans accounting adjustments could have a material effect on our fiscal 2024 consolidated financial results and ETR.

 

The table included below titled “Fiscal 2024 Earnings Per Share Forecast” outlines the effects of the items that are excluded from our fiscal 2024 EPS forecast, other than the MTM retirement plans accounting adjustments.

 

 

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Second Quarter Fiscal 2024

 

FedEx Corporation

 

		Operating				Income		Net		Diluted Earnings
Dollars in millions, except EPS		Income		Margin1		Taxes2		Income3		Per Share
GAAP measure		$1,276		5.8%		$302		$900		$3.55
Business optimization costs4		145		0.7%		35		110		0.44
Non-GAAP measure		$1,421		6.4%		$337		$1,010		$3.99

 

FedEx Express Segment

 

		Operating
Dollars in millions		Income		Margin
GAAP measure		$137		1.3%
Business optimization costs		41		0.4%
Non-GAAP measure		$178		1.7%

 

FedEx Ground Segment

 

		Operating
Dollars in millions		Income		Margin
GAAP measure		$900		10.4%
Business optimization costs		36		0.4%
Non-GAAP measure		$936		10.8%

 

Second Quarter Fiscal 2023

 

FedEx Corporation

 

		Operating				Income		Net		Diluted Earnings
Dollars in millions, except EPS		Income		Margin1		Taxes2		Income3		Per Share
GAAP measure		$1,176		5.2%		$271		$788		$3.07
Business optimization costs5		36		0.2%		9		27		0.11
Non-GAAP measure		$1,212		5.3%		$280		$815		$3.18

 

FedEx Express Segment

 

		Operating
Dollars in millions		Income		Margin
GAAP measure		$341		3.1%
Business optimization costs		11		0.1%
Non-GAAP measure		$352		3.2%

 

 

 

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Fiscal 2024 Earnings Per Share Forecast

 

Dollars in millions, except EPS		Adjustments		Diluted Earnings Per Share
Earnings per diluted share before     MTM retirement plans accounting     adjustments (non-GAAP)6				$15.35 to $16.85
Business optimization costs		$550
Income tax effect2		(130)
Net of tax effect		$420		1.65
Earnings per diluted share with adjustments     (non-GAAP)6				$17.00 to $18.50

 

Notes:

 

1 – Does not sum to total due to rounding.

2 – Income taxes are based on the company’s approximate statutory tax rates applicable to each transaction.

3 – Effect of “total other (expense) income” on net income amount not shown.

4 – These expenses were recognized at Corporate, other, and eliminations, as well as FedEx Express and FedEx Ground.

5 – These expenses were recognized at FedEx Corporate and FedEx Express.

6 – The MTM retirement plans accounting adjustments, which are impracticable to calculate at this time, are excluded.

 

# # #

 

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FEDEX CORP. FINANCIAL HIGHLIGHTS

 

Second Quarter Fiscal 2024

(In millions, except earnings per share)

(Unaudited)

 

		Three Months Ended November 30,												Six Months Ended November 30,
		2023				2022				Percent Change				2023				2022				Percent Change
Revenue:
FedEx Express segment		$	10,254			$	10,864				(6	)		$	20,339			$	21,991				(8	)
FedEx Ground segment			8,639				8,393				3				17,059				16,553				3
FedEx Freight segment			2,360				2,454				(4	)			4,651				5,177				(10	)
FedEx Services segment			65				68				(4	)			137				138				(1	)
Other and eliminations1			847				1,035				(18	)			1,660				2,197				(24	)
Total Revenue			22,165				22,814				(3	)			43,846				46,056				(5	)
Operating Expenses:
Salaries and employee benefits			7,833				7,792				1				15,618				15,651				—
Purchased transportation			5,395				5,665				(5	)			10,431				11,432				(9	)
Rentals			1,138				1,195				(5	)			2,289				2,354				(3	)
Depreciation and amortization			1,040				1,046				(1	)			2,111				2,070				2
Fuel			1,328				1,593				(17	)			2,429				3,415				(29	)
Maintenance and repairs			854				882				(3	)			1,678				1,786				(6	)
Business optimization and realignment costs			145				36				303				250				74				238
Other			3,156				3,429				(8	)			6,279				6,907				(9	)
Total Operating Expenses			20,889				21,638				(3	)			41,085				43,689				(6	)
Operating Income (Loss):
FedEx Express segment			137				341				(60	)			342				515				(34	)
FedEx Ground segment			900				598				51				2,003				1,292				55
FedEx Freight segment			487				440				11				968				1,091				(11	)
Corporate, other, and eliminations1			(248	)			(203	)			(22	)			(552	)			(531	)			(4	)
Total Operating Income			1,276				1,176				9				2,761				2,367				17
Other (Expense) Income:
Interest, net			(97	)			(127	)			24				(188	)			(269	)			30
Other retirement plans, net			41				101				(59	)			80				202				(60	)
Other, net			(18	)			(91	)			80				(28	)			(87	)			68
Total Other (Expense) Income			(74	)			(117	)			37				(136	)			(154	)			12
Income Before Income Taxes			1,202				1,059				14				2,625				2,213				19
Provision for Income Taxes			302				271				11				647				550				18
Net Income		$	900			$	788				14			$	1,978			$	1,663				19
Diluted Earnings Per Share		$	3.55			$	3.07				16			$	7.79			$	6.41				22
Weighted Average Common and
Common Equivalent Shares			253				256				(1	)			254				259				(2	)
Capital Expenditures		$	1,305			$	1,858				(30	)		$	2,595			$	3,142				(17	)

 

1 – Includes the FedEx Office, FedEx Logistics, and FedEx Dataworks operating segments.

 

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FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS

 

Second Quarter Fiscal 2024

(In millions)

 

		November 30, 2023
		(Unaudited)				May 31, 2023
ASSETS
Current Assets
Cash and cash equivalents		$	6,729			$	6,856
Receivables, less allowances			10,665				10,188
Spare parts, supplies, and fuel, less allowances			632				604
Prepaid expenses and other			1,091				962
Total current assets			19,117				18,610
Property and Equipment, at Cost			83,281				80,624
Less accumulated depreciation and amortization			41,749				39,926
Net property and equipment			41,532				40,698
Other Long-Term Assets
Operating lease right-of-use assets, net			17,243				17,347
Goodwill			6,468				6,435
Other assets			3,691				4,053
Total other long-term assets			27,402				27,835
		$	88,051			$	87,143
LIABILITIES AND COMMON STOCKHOLDERS'    INVESTMENT
Current Liabilities
Current portion of long-term debt		$	334			$	126
Accrued salaries and employee benefits			2,732				2,475
Accounts payable			4,002				3,848
Operating lease liabilities			2,433				2,390
Accrued expenses			4,747				4,747
Total current liabilities			14,248				13,586
Long-Term Debt, Less Current Portion			20,193				20,453
Other Long-Term Liabilities
Deferred income taxes			4,386				4,489
Pension, postretirement healthcare, and other benefit obligations			2,854				3,130
Self-insurance accruals			3,688				3,339
Operating lease liabilities			15,222				15,363
Other liabilities			694				695
Total other long-term liabilities			26,844				27,016
Commitments and Contingencies
Common Stockholders' Investment
Common stock, $0.10 par value, 800 million shares authorized			32				32
Additional paid-in capital			3,849				3,769
Retained earnings			36,605				35,259
Accumulated other comprehensive loss			(1,294	)			(1,327	)
Treasury stock, at cost			(12,426	)			(11,645	)
Total common stockholders' investment			26,766				26,088
		$	88,051			$	87,143

 

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FEDEX CORP. CONDENSED CONSOLIDATED

STATEMENTS OF CASH FLOWS

 

Second Quarter Fiscal 2024

(In millions)

(Unaudited)

 

		Six Months Ended November 30,
		2023				2022
Operating Activities:
Net income		$	1,978			$	1,663
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization			2,111				2,070
Other, net			1,711				2,082
Changes in operating assets and liabilities, net			(1,796	)			(2,690	)
Net cash provided by operating activities			4,004				3,125
Investing Activities:
Capital expenditures			(2,595	)			(3,142	)
Purchase of investments			(75	)			(78	)
Proceeds from asset dispositions and other			62				20
Net cash used in investing activities			(2,608	)			(3,200	)
Financing Activities:
Principal payments on debt			(94	)			(32	)
Proceeds from stock issuances			211				89
Dividends paid			(635	)			(598	)
Purchase of treasury stock			(1,000	)			(1,500	)
Other, net			—				1
Cash used in financing activities			(1,518	)			(2,040	)
Effect of exchange rate changes on cash			(5	)			(136	)
Net decrease in cash and cash equivalents			(127	)			(2,251	)
Cash and cash equivalents at beginning of period			6,856				6,897
Cash and cash equivalents at end of period		$	6,729			$	4,646

 

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FEDEX EXPRESS SEGMENT FINANCIAL HIGHLIGHTS

 

Second Quarter Fiscal 2024

(Dollars in millions)

(Unaudited)

 

		Three Months Ended November 30,												Six Months Ended November 30,
		2023				2022				Percent Change				2023				2022				Percent Change
Revenue:
Package Revenue:
U.S. Overnight Box		$	2,158			$	2,237				(4	)		$	4,346			$	4,553				(5	)
U.S. Overnight Envelope			447				474				(6	)			932				999				(7	)
Total U.S. Overnight			2,605				2,711				(4	)			5,278				5,552				(5	)
U.S. Deferred			1,208				1,253				(4	)			2,395				2,540				(6	)
Total U.S. Package Revenue			3,813				3,964				(4	)			7,673				8,092				(5	)
International Priority			2,390				2,823				(15	)			4,717				5,720				(18	)
International Economy			1,088				711				53				2,109				1,418				49
Total International Export Package			3,478				3,534				(2	)			6,826				7,138				(4	)
International Domestic1			1,086				1,036				5				2,110				2,010				5
Total Package Revenue			8,377				8,534				(2	)			16,609				17,240				(4	)
Freight Revenue:
U.S.			584				784				(26	)			1,166				1,580				(26	)
International Priority			569				811				(30	)			1,122				1,699				(34	)
International Economy			422				388				9				847				765				11
International Airfreight			29				39				(26	)			61				80				(24	)
Total Freight Revenue			1,604				2,022				(21	)			3,196				4,124				(23	)
Other Revenue			273				308				(11	)			534				627				(15	)
Total Express Revenue			10,254				10,864				(6	)			20,339				21,991				(8	)
Operating Expenses:
Salaries and employee benefits			3,964				3,938				1				7,947				7,988				(1	)
Purchased transportation			1,458				1,432				2				2,832				2,910				(3	)
Rentals and landing fees			515				586				(12	)			1,051				1,163				(10	)
Depreciation and amortization			542				520				4				1,080				1,033				5
Fuel			1,155				1,372				(16	)			2,109				2,956				(29	)
Maintenance and repairs			494				534				(7	)			990				1,096				(10	)
Business optimization and realignment costs			41				11				273				51				25				104
Intercompany charges			469				477				(2	)			961				961				—
Other			1,479				1,653				(11	)			2,976				3,344				(11	)
Total Operating Expenses			10,117				10,523				(4	)			19,997				21,476				(7	)
Operating Income		$	137			$	341				(60	)		$	342			$	515				(34	)
Operating Margin			1.3	%			3.1	%		(1.8 pts)					1.7	%			2.3	%		(0.6 pts)

1 – International Domestic revenue relates to international intra-country operations.

 

 

 

12

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FEDEX EXPRESS SEGMENT OPERATING HIGHLIGHTS

 

Second Quarter Fiscal 2024

(Unaudited)

 

		Three Months Ended November 30,												Six Months Ended November 30,
		2023				2022				Percent Change				2023				2022				Percent Change
PACKAGE STATISTICS
Average Daily Package Volume (000s):
U.S. Overnight Box			1,245				1,283				(3	)			1,236				1,284				(4	)
U.S. Overnight Envelope			431				458				(6	)			442				471				(6	)
Total U.S. Overnight Package			1,676				1,741				(4	)			1,678				1,755				(4	)
U.S. Deferred			1,009				1,042				(3	)			989				1,057				(6	)
Total U.S. Domestic Package			2,685				2,783				(4	)			2,667				2,812				(5	)
International Priority			673				736				(9	)			666				718				(7	)
International Economy			373				285				31				353				272				30
Total International Export Package			1,046				1,021				2				1,019				990				3
International Domestic1			1,907				1,950				(2	)			1,823				1,826				—
Total Average Daily Packages			5,638				5,754				(2	)			5,509				5,628				(2	)
Yield (Revenue Per Package):
U.S. Overnight Box		$	27.50			$	27.69				(1	)		$	27.47			$	27.71				(1	)
U.S. Overnight Envelope			16.48				16.44				—				16.49				16.55				—
U.S. Overnight Composite			24.67				24.73				—				24.58				24.71				(1	)
U.S. Deferred			19.02				19.06				—				18.92				18.77				1
U.S. Domestic Composite			22.55				22.61				—				22.48				22.48				—
International Priority			56.36				60.87				(7	)			55.37				62.28				(11	)
International Economy			46.27				39.58				17				46.69				40.66				15
Total International Export Composite			52.76				54.93				(4	)			52.36				56.33				(7	)
International Domestic1			9.03				8.43				7				9.04				8.60				5
Composite Package Yield		$	23.58			$	23.54				—			$	23.56			$	23.93				(2	)
FREIGHT STATISTICS
Average Daily Freight Pounds (000s):
U.S.			5,681				7,503				(24	)			5,497				7,406				(26	)
International Priority			4,472				5,757				(22	)			4,431				5,902				(25	)
International Economy			10,350				11,668				(11	)			10,001				10,928				(8	)
International Airfreight			698				948				(26	)			701				952				(26	)
Total Avg Daily Freight Pounds			21,201				25,876				(18	)			20,630				25,188				(18	)
Revenue Per Freight Pound:
U.S.		$	1.63			$	1.66				(2	)		$	1.66			$	1.67				(1	)
International Priority			2.02				2.24				(10	)			1.98				2.25				(12	)
International Economy			0.65				0.53				23				0.66				0.55				20
International Airfreight			0.65				0.65				—				0.68				0.66				3
Composite Freight Yield		$	1.20			$	1.24				(3	)		$	1.21			$	1.28				(5	)
Operating Weekdays			63				63				—				128				128				—

1 – International Domestic statistics relate to international intra-country operations.

 

13

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FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

 

Second Quarter Fiscal 2024

(Dollars in millions)

(Unaudited)

 

		Three Months Ended November 30,												Six Months Ended November 30,
		2023				2022				Percent Change				2023				2022				Percent Change
FINANCIAL HIGHLIGHTS
Revenue		$	8,639			$	8,393				3			$	17,059			$	16,553				3
Operating Expenses:
Salaries and employee benefits			1,739				1,727				1				3,406				3,364				1
Purchased transportation			3,682				3,828				(4	)			7,109				7,541				(6	)
Rentals			433				414				5				856				804				6
Depreciation and amortization			279				249				12				552				495				12
Fuel			9				10				(10	)			16				19				(16	)
Maintenance and repairs			173				162				7				332				317				5
Business optimization and realignment costs			36				—			NM					53				—			NM
Intercompany charges			489				493				(1	)			997				983				1
Other			899				912				(1	)			1,735				1,738				—
Total Operating Expenses			7,739				7,795				(1	)			15,056				15,261				(1	)
Operating Income		$	900			$	598				51			$	2,003			$	1,292				55
Operating Margin			10.4	%			7.1	%		3.3 pts					11.7	%			7.8	%		3.9 pts
OPERATING STATISTICS
Ground Commercial Operating Weekdays			63				63				—				128				128				—
Home Delivery and Economy Operating Days			89				89				—				180				180				—
Average Daily Package Volume (000s)1:
Ground Commercial			4,609				4,523				2				4,543				4,445				2
Home Delivery			4,076				4,084				—				3,960				3,997				(1	)
Economy			874				828				6				804				778				3
Total Average Daily Package Volume			9,559				9,435				1				9,307				9,220				1
Yield (Revenue Per Package)		$	11.69			$	11.55				1			$	11.74			$	11.52				2

1 – FedEx Ground Commercial average daily package volume is calculated on a 5-day-per-week basis, while Home Delivery and Economy average daily package volumes are calculated on a 7-day-per-week basis.

 

 

14

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FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS

 

Second Quarter Fiscal 2024

(Dollars in millions)

(Unaudited)

 

		Three Months Ended November 30,												Six Months Ended November 30,
		2023				2022				Percent Change				2023				2022				Percent Change
FINANCIAL HIGHLIGHTS
Revenue		$	2,360			$	2,454				(4	)		$	4,651			$	5,177				(10	)
Operating Expenses:
Salaries and employee benefits			1,007				1,039				(3	)			1,980				2,098				(6	)
Purchased transportation			163				187				(13	)			312				408				(24	)
Rentals			68				66				3				136				131				4
Depreciation and amortization			81				103				(21	)			188				209				(10	)
Fuel			165				211				(22	)			303				439				(31	)
Maintenance and repairs			93				88				6				168				168				—
Intercompany charges			130				130				—				265				262				1
Other			166				190				(13	)			331				371				(11	)
Total Operating Expenses			1,873				2,014				(7	)			3,683				4,086				(10	)
Operating Income		$	487			$	440				11			$	968			$	1,091				(11	)
Operating Margin			20.6	%			17.9	%		2.7 pts					20.8	%			21.1	%		(0.3 pts)
OPERATING STATISTICS
Operating Weekdays			62				62				—				127				127				—
Average Daily Shipments (000s):
Priority			68.5				73.3				(7	)			67.3				74.8				(10	)
Economy			30.5				31.0				(2	)			29.5				31.6				(7	)
Total Average Daily Shipments			99.0				104.3				(5	)			96.8				106.4				(9	)
Weight Per Shipment (lbs):
Priority			975				1,029				(5	)			982				1,042				(6	)
Economy			880				940				(6	)			878				939				(6	)
Composite Weight Per Shipment			946				1,002				(6	)			950				1,011				(6	)
Revenue/Shipment:
Priority		$	365.55			$	361.57				1			$	359.24			$	365.76				(2	)
Economy			415.82				415.35				—				411.95				419.64				(2	)
Composite Revenue/Shipment		$	381.05			$	377.53				1			$	375.30			$	381.74				(2	)
Revenue/CWT:
Priority		$	37.48			$	35.14				7			$	36.58			$	35.10				4
Economy			47.26				44.21				7				46.93				44.70				5
Composite Revenue/CWT		$	40.29			$	37.66				7			$	39.49			$	37.74				5

 

 

15

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v3.23.4

Document and Entity Information	Dec. 19, 2023
Document And Entity Information [Line Items]
Entity Registrant Name	FEDEX CORP
Amendment Flag	false
Entity Central Index Key	0001048911
Document Type	8-K
Document Period End Date	Dec. 19, 2023
Entity File Number	1-15829
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	62-1721435
Entity Address, Address Line One	942 South Shady Grove Road
Entity Address, City or Town	Memphis
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	38120
City Area Code	(901)
Local Phone Number	818-7500
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock Par Value Zero Point One Zero Per Share [Member]
Document And Entity Information [Line Items]
Security 12b Title	Common Stock, par value $0.10 per share
Trading Symbol	FDX
Security Exchange Name	NYSE
M 0.450 Notes Due 20255 [Member]
Document And Entity Information [Line Items]
Security 12b Title	0.450% Notes due 2025
Trading Symbol	FDX 25A
Security Exchange Name	NYSE
M 1.625 Notes Due 20271 [Member]
Document And Entity Information [Line Items]
Security 12b Title	1.625% Notes due 2027
Trading Symbol	FDX 27
Security Exchange Name	NYSE
M 0.450 Notes Due 20292 [Member]
Document And Entity Information [Line Items]
Security 12b Title	0.450% Notes due 2029
Trading Symbol	FDX 29A
Security Exchange Name	NYSE
M 1.300 Notes Due 20313 [Member]
Document And Entity Information [Line Items]
Security 12b Title	1.300% Notes due 2031
Trading Symbol	FDX 31
Security Exchange Name	NYSE
M 0.950 Notes Due 20334 [Member]
Document And Entity Information [Line Items]
Security 12b Title	0.950% Notes due 2033
Trading Symbol	FDX 33
Security Exchange Name	NYSE

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