UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
Commission File Number
|
||
(State or other jurisdiction of |
|
(IRS Employer |
incorporation) |
|
Identification No.) |
|
|
|
|
||
(Address of principal executive offices) |
|
(ZIP Code) |
Registrant’s telephone number, including area code: (
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 |
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
|||
|
|
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. ☐
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 June 25, 2024, announcing its financial results for the fiscal quarter and year ended May 31, 2024.
SECTION 9. FINANCIAL STATEMENTS AND EXHIBITS.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number |
|
Description |
|
|
|
99.1 |
|
|
|
|
|
104 |
|
Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). |
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: June 25, 2024 |
|
By: |
|
/s/ Guy M. Erwin II |
|
|
|
|
Guy M. Erwin II |
|
|
|
|
Corporate Vice President – |
|
|
|
|
Chief Accounting Officer |
EXHIBIT INDEX
Exhibit Number |
|
Description |
|
|
|
99.1 |
|
|
|
|
|
104 |
|
Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). |
Exhibit 99.1
FedEx Reports Higher Full-Year Diluted EPS of $17.21
and Adjusted Diluted EPS of $17.80
Introduces Fiscal 2025 Outlook, Including $2.2 Billion of DRIVE Cost Savings
Conducting an Assessment of the Role of FedEx Freight in Value-Creation Plans
Returned $3.8 Billion to Stockholders Through Stock Repurchases
and Dividends During Fiscal 2024
MEMPHIS, Tenn., June 25, 2024 ... FedEx Corp. (NYSE: FDX) today reported the following consolidated results for the quarter ended May 31 (adjusted measures exclude the items listed below for the applicable fiscal year):
|
|
Fiscal 2024 |
|
Fiscal 2023 |
||||
|
|
As Reported |
|
Adjusted |
|
As Reported |
|
Adjusted |
Revenue |
|
$22.1 billion |
|
$22.1 billion |
|
$21.9 billion |
|
$21.9 billion |
Operating income |
|
$1.56 billion |
|
$1.87 billion |
|
$1.50 billion |
|
$1.77 billion |
Operating margin |
|
7.0% |
|
8.5% |
|
6.9% |
|
8.1% |
Net income |
|
$1.47 billion |
|
$1.34 billion |
|
$1.54 billion |
|
$1.25 billion |
Diluted EPS |
|
$5.94 |
|
$5.41 |
|
$6.05 |
|
$4.94 |
This year’s and last year’s quarterly and full-year consolidated results have been adjusted for:
|
|
Fiscal 2024 |
|
Fiscal 2023 |
||||
Impact per diluted share |
|
Fourth |
|
Full |
|
Fourth |
|
Full |
Mark-to-market (MTM) retirement |
|
($1.72) |
|
($1.69) |
|
($1.94) |
|
($1.92) |
Business optimization costs |
|
0.67 |
|
1.77 |
|
0.28 |
|
0.81 |
Goodwill and other asset |
|
0.48 |
|
0.48 |
|
0.38 |
|
0.38 |
Remeasurement of state deferred |
|
0.22 |
|
0.21 |
|
— |
|
— |
FedEx Ground legal matters |
|
(0.18) |
|
(0.17) |
|
0.10 |
|
0.10 |
Business realignment costs |
|
— |
|
— |
|
0.06 |
|
0.11 |
Fourth quarter revenue increased modestly versus the prior year period. Operating income and margin improved, reflecting lower structural costs as the company continued to execute on its DRIVE program.
“We made significant progress in fiscal 2024 and ended the year strong, delivering four consecutive quarters of expanding operating income and margin in a
1
challenging revenue environment,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “These results are unprecedented in this current environment, reflecting our continued execution of our DRIVE initiatives and our resolve to transform FedEx while we deliver outstanding service to our customers. We expect this momentum to continue in fiscal 2025 as we advance our efforts to create the world’s most flexible, efficient, and intelligent network.”
FedEx Ground operating results increased due to reduced structural costs resulting from DRIVE initiatives, increased yield, lower self-insurance costs, and growth in ground commercial volume.
FedEx Freight operating results increased due to higher yield and effective cost management. FedEx Freight has announced plans to further optimize its operations and match capacity with demand through the planned permanent closure of seven facilities.
FedEx Express operating results declined primarily due to lower international yields, partially offset by reduced structural costs from DRIVE initiatives and higher U.S. domestic package yields. During the quarter, FedEx Express permanently retired certain aircraft and related engines as part of its fleet modernization program.
Fourth quarter results include a noncash impairment charge of $157 million ($0.48 per diluted share) from the decision to permanently retire 22 Boeing 757-200 aircraft and seven related engines as the company continues to modernize its air fleet, improve its global network efficiency, and better align air network capacity with current and anticipated demand. Last year's fourth quarter results included a noncash impairment charge of $70 million ($0.21 per diluted share) from the decision to permanently retire 18 aircraft and 34 related engines, and $47 million ($0.17 per diluted share) of goodwill and other asset impairment charges related to the ShopRunner acquisition.
Fourth quarter results include an income tax expense of $54 million ($0.22 per diluted share) from the remeasurement of U.S. state deferred income tax balances related to the merger of FedEx Ground and FedEx Services into Federal Express Corporation. Last year's fourth quarter results included a tax expense of $46 million ($0.18 per diluted share) from a revaluation of certain foreign tax assets.
Full-Year Results
For the full fiscal year, FedEx Corp. reported the following consolidated results (adjusted measures exclude the items listed above for the applicable fiscal year):
2
|
|
Fiscal 2024 |
|
Fiscal 2023 |
||||
|
|
As Reported |
|
Adjusted |
|
As Reported |
|
Adjusted |
Revenue |
|
$87.7 billion |
|
$87.7 billion |
|
$90.2 billion |
|
$90.2 billion |
Operating income |
|
$5.56 billion |
|
$6.24 billion |
|
$4.91 billion |
|
$5.37 billion |
Operating margin |
|
6.3% |
|
7.1% |
|
5.4% |
|
6.0% |
Net income |
|
$4.33 billion |
|
$4.48 billion |
|
$3.97 billion |
|
$3.84 billion |
Diluted EPS |
|
$17.21 |
|
$17.80 |
|
$15.48 |
|
$14.96 |
Capital spending for fiscal 2024 was $5.2 billion, down 16% from $6.2 billion in fiscal 2023.
Capital Returns
During fiscal 2024, FedEx returned approximately $3.8 billion to stockholders through the combination of $2.5 billion of stock repurchases and $1.3 billion of dividend payments. Repurchases during fiscal 2024 totaled approximately 9.8 million shares or 3.9% of the shares outstanding at the beginning of the year, and increased fourth quarter and full-year earnings by $0.21 and $0.34 per share, respectively. As of May 31, 2024, $5.1 billion remained under the existing stock repurchase authorizations.
For fiscal 2025, FedEx expects to repurchase $2.5 billion of FedEx common stock, including $1.0 billion during the first fiscal quarter, and previously announced a 10% increase ($0.48 per share) in the annual dividend rate on its common stock to $5.52 per share.
“As we advance our transformation, we continue to focus on reducing structural costs and lowering the capital intensity of the business,” said John Dietrich, FedEx Corp. executive vice president and chief financial officer. “Improved earnings and enhanced capital discipline enabled us to return $3.8 billion to stockholders during fiscal 2024 while prudently investing in our business and maintaining a strong balance sheet.”
Outlook
FedEx is unable to forecast the fiscal 2025 MTM retirement plans accounting adjustments. As a result, FedEx is unable to provide a fiscal 2025 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 (SEC). It is reasonably possible that the fiscal 2025 MTM retirement plans accounting adjustments could have a material effect on fiscal 2025 consolidated financial results and ETR.
For fiscal 2025, FedEx is forecasting:
3
These forecasts assume the company's current economic forecast and fuel price expectations, successful completion of the planned stock repurchases, and no additional adverse economic or geopolitical developments. FedEx’s ETR and earnings per share forecasts are based on current law and related regulations and guidance.
With the recent completion of the FY25 planning process, FedEx has turned its focus to the next phase of its long-term stockholder value-creation plans. As a part of this work, FedEx management and Board of Directors are conducting an assessment of the role of FedEx Freight in the company’s portfolio structure and potential steps to further unlock sustainable shareholder value. The company is committed to completing this review thoroughly and deliberately, by the end of the calendar year. FedEx will conduct this assessment while continuing to focus on customers, team members, and the safety of its operations.
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 utilizing its flexible, efficient, and intelligent global network. 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 5:00 p.m. EDT on June 25, 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
4
Exchange Commission 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 optimization of our network through Network 2.0, 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 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 optimize our network through Network 2.0, effectively respond to changes in market dynamics, and achieve the anticipated benefits of such strategies and actions; our ability to achieve our cost reduction initiatives and financial performance goals; the timing and amount of any costs or benefits or any specific outcome, transaction, or change (of which there can be no assurance), or the terms, timing, and structure thereof, related to our global transformation program and other ongoing reviews and initiatives; damage to our reputation or loss of brand equity; our ability to adjust our air network to remove costs related to services currently provided to the U.S. Postal Service ("USPS") under the contract for Federal Express Corporation to provide the USPS domestic transportation services, or a decision by the USPS to terminate the agreement early; 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; the impact of a widespread outbreak of an illness or any other communicable disease or public health crises; anti-trade measures and additional changes in international trade policies and relations; the effect of any international conflicts or terrorist activities, including as a result of the current conflicts between Russia and Ukraine and in the Middle East; changes in fuel prices or currency exchange rates, including significant increases in fuel prices as a result of the ongoing conflicts between Russia and Ukraine and in the Middle East and other geopolitical and regulatory developments; 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; passenger airline cargo capacity; evolving or new
5
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 contracted to conduct certain linehaul and pickup-and-delivery operations and the drivers providing services on their behalf and the coverage of U.S. employees at Federal Express Corporation 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 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: Jeni Hollander 901-818-7200
6
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
Fourth Quarter and Full-Year 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 fourth quarter and adjusted full-year fiscal 2024 and 2023 consolidated operating income and margin, net income and diluted earnings per share; adjusted fourth quarter and adjusted full-year fiscal 2024 and 2023 FedEx Express segment operating income and margin; and adjusted fourth quarter and adjusted full-year fiscal 2024 FedEx Ground segment operating income and margin. These financial measures have been adjusted to exclude the impact of the following items (as applicable):
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 fiscal 2024 and fiscal 2023. These costs were primarily related to professional services and severance. Additionally, we incurred costs associated with our business realignment activities in connection with the FedEx Express workforce reduction plan in Europe announced in January 2021 in fiscal 2023.
Costs related to business optimization initiatives and business realignment activities, as well as MTM retirement plans accounting adjustments, goodwill and other asset impairment charges, costs related to a FedEx Ground legal matter, and insurance recoveries related to accrued pre- and post-judgment interest incurred in connection with a separate FedEx Ground legal matter in fiscal 2022 are excluded from our fourth quarter and full-year fiscal 2024 and 2023 consolidated and FedEx Express and FedEx Ground segment non-GAAP financial measures, as applicable, because
7
they are unrelated to our core operating performance and/or to assist investors with assessing trends in our underlying businesses. The charges incurred in connection with a FedEx Ground legal matter in fiscal 2023 are extraordinary in nature and do not represent a recurring expense arising in our ordinary course of business.
An income tax expense related to the remeasurement of U.S. state deferred income tax balances in connection with the merger of FedEx Ground and FedEx Services into Federal Express Corporation pursuant to our one FedEx consolidation is excluded from our fourth quarter and full-year fiscal 2024 consolidated non-GAAP financial measures because it results from the non-recurring impact of the one FedEx consolidation on our overall deferred tax position, which accumulated over many prior reporting periods. The adjustment to our fourth quarter and full-year fiscal 2024 consolidated financial measures includes only the transitional impact related to the one FedEx consolidation.
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.
Fiscal 2025 Earnings Per Share and Effective Tax Rate Forecasts
Our fiscal 2025 earnings per share (EPS) forecast is a non-GAAP financial measure because it excludes fiscal 2025 MTM retirement plans accounting adjustments and estimated costs related to business optimization initiatives in fiscal 2025. Our fiscal 2025 effective tax rate (ETR) forecast is a non-GAAP financial measure because it excludes the effect of fiscal 2025 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 2025 EPS forecast for the same reasons described above for historical non-GAAP measures.
8
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 2025 EPS and ETR forecasts. For this reason, a full reconciliation of our fiscal 2025 EPS and ETR forecasts to the most directly comparable GAAP measures is impracticable. It is reasonably possible, however, that our fiscal 2025 MTM retirement plans accounting adjustments could have a material effect on our fiscal 2025 consolidated financial results and ETR.
The table included below titled “Fiscal 2025 Earnings Per Share Forecast” outlines the effects of the items that are excluded from our fiscal 2025 EPS forecast, other than the MTM retirement plans accounting adjustments.
9
Fourth Quarter Fiscal 2024
FedEx Corporation
|
|
Operating |
|
Income |
|
Net |
|
Diluted |
||
Dollars in millions, except EPS |
|
Income |
|
Margin1 |
|
Taxes2 |
|
Income3 |
|
Per Share |
GAAP measure |
|
$1,555 |
|
7.0% |
|
$554 |
|
$1,474 |
|
$5.94 |
MTM retirement plans |
|
— |
|
— |
|
(135) |
|
(426) |
|
(1.72) |
Business optimization costs5 |
|
218 |
|
1.0% |
|
51 |
|
166 |
|
0.67 |
Asset impairment charges6 |
|
157 |
|
0.7% |
|
37 |
|
120 |
|
0.48 |
Remeasurement of state |
|
— |
|
— |
|
(54) |
|
54 |
|
0.22 |
FedEx Ground legal matter7 |
|
(57) |
|
(0.3%) |
|
(13) |
|
(44) |
|
(0.18) |
Non-GAAP measure |
|
$1,873 |
|
8.5% |
|
$440 |
|
$1,344 |
|
$5.41 |
FedEx Express Segment
|
|
Operating |
||
Dollars in millions |
|
Income |
|
Margin |
GAAP measure |
|
$201 |
|
1.9% |
Asset impairment charges |
|
157 |
|
1.5% |
Business optimization costs |
|
69 |
|
0.7% |
Non-GAAP measure |
|
$427 |
|
4.1% |
FedEx Ground Segment
|
|
Operating |
||
Dollars in millions |
|
Income |
|
Margin |
GAAP measure |
|
$1,104 |
|
13.0% |
Business optimization costs |
|
33 |
|
0.4% |
Non-GAAP measure |
|
$1,137 |
|
13.4% |
10
Full-Year Fiscal 2024
FedEx Corporation
|
|
Operating |
|
Income |
|
Net |
|
Diluted |
||
Dollars in millions, except EPS |
|
Income |
|
Margin |
|
Taxes2 |
|
Income3 |
|
Per Share1 |
GAAP measure |
|
$5,559 |
|
6.3% |
|
$1,505 |
|
$4,331 |
|
$17.21 |
MTM retirement plans |
|
— |
|
— |
|
(135) |
|
(426) |
|
(1.69) |
Business optimization costs5 |
|
582 |
|
0.7% |
|
137 |
|
444 |
|
1.77 |
Asset impairment charges6 |
|
157 |
|
0.2% |
|
37 |
|
120 |
|
0.48 |
Remeasurement of state |
|
— |
|
— |
|
(54) |
|
54 |
|
0.21 |
FedEx Ground legal matter7 |
|
(57) |
|
(0.1%) |
|
(13) |
|
(44) |
|
(0.17) |
Non-GAAP measure |
|
$6,241 |
|
7.1% |
|
$1,477 |
|
$4,479 |
|
$17.80 |
FedEx Express Segment
|
|
Operating |
||
Dollars in millions |
|
Income |
|
Margin1 |
GAAP measure |
|
$776 |
|
1.9% |
Asset impairment charges |
|
157 |
|
0.4% |
Business optimization costs |
|
143 |
|
0.4% |
Non-GAAP measure |
|
$1,076 |
|
2.6% |
FedEx Ground Segment
|
|
Operating |
||
Dollars in millions |
|
Income |
|
Margin |
GAAP measure |
|
$4,049 |
|
11.8% |
Business optimization costs |
|
108 |
|
0.3% |
Non-GAAP measure |
|
$4,157 |
|
12.1% |
11
Fourth Quarter Fiscal 2023
FedEx Corporation
|
|
Operating |
|
Income |
|
Net |
|
Diluted |
||
Dollars in millions, except EPS |
|
Income |
|
Margin |
|
Taxes1,2 |
|
Income3 |
|
Per Share1 |
GAAP measure |
|
$1,503 |
|
6.9% |
|
$590 |
|
$1,538 |
|
$6.05 |
MTM retirement plans |
|
— |
|
— |
|
(157) |
|
(493) |
|
(1.94) |
Goodwill and other asset |
|
117 |
|
0.5% |
|
19 |
|
98 |
|
0.38 |
Business optimization costs7 |
|
93 |
|
0.4% |
|
22 |
|
71 |
|
0.28 |
FedEx Ground legal matter7 |
|
35 |
|
0.2% |
|
9 |
|
26 |
|
0.10 |
Business realignment costs6 |
|
19 |
|
0.1% |
|
5 |
|
14 |
|
0.06 |
Non-GAAP measure |
|
$1,767 |
|
8.1% |
|
$487 |
|
$1,254 |
|
$4.94 |
FedEx Express Segment
|
|
Operating |
||
Dollars in millions |
|
Income |
|
Margin |
GAAP measure |
|
$430 |
|
4.1% |
Asset impairment charges |
|
70 |
|
0.7% |
Business realignment costs |
|
19 |
|
0.2% |
Non-GAAP measure |
|
$519 |
|
5.0% |
Full-Year Fiscal 2023
FedEx Corporation
|
|
Operating |
|
Income |
|
Net |
|
Diluted |
||
Dollars in millions, except EPS |
|
Income |
|
Margin1 |
|
Taxes2 |
|
Income3 |
|
Per Share |
GAAP measure |
|
$4,912 |
|
5.4% |
|
$1,391 |
|
$3,972 |
|
$15.48 |
MTM retirement plans |
|
— |
|
— |
|
(157) |
|
(493) |
|
(1.92) |
Business optimization costs9 |
|
273 |
|
0.3% |
|
64 |
|
209 |
|
0.81 |
Goodwill and other asset |
|
117 |
|
0.1% |
|
19 |
|
98 |
|
0.38 |
Business realignment costs6 |
|
36 |
|
— |
|
9 |
|
27 |
|
0.11 |
FedEx Ground legal matter7 |
|
35 |
|
— |
|
9 |
|
26 |
|
0.10 |
Non-GAAP measure |
|
$5,373 |
|
6.0% |
|
$1,335 |
|
$3,839 |
|
$14.96 |
12
Full-Year Fiscal 2023 (continued)
FedEx Express Segment
|
|
Operating |
||
Dollars in millions |
|
Income |
|
Margin |
GAAP measure |
|
$1,064 |
|
2.5% |
Asset impairment charges |
|
70 |
|
0.2% |
Business realignment costs |
|
36 |
|
0.1% |
Business optimization costs |
|
11 |
|
— |
Non-GAAP measure |
|
$1,181 |
|
2.8% |
Fiscal 2025 Earnings Per Share Forecast
Dollars in millions, except EPS |
|
Adjustments |
|
Diluted |
Earnings per diluted share before MTM |
|
|
|
$18.25 to $20.25 |
|
|
|
|
|
Business optimization costs |
|
$560 |
|
|
Income tax effect2 |
|
(130) |
|
|
Net of tax effect |
|
$430 |
|
1.75 |
|
|
|
|
|
Earnings per diluted share with |
|
|
|
$20.00 to $22.00 |
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 – The MTM retirement plans accounting adjustment reflects the year-end adjustment to
the valuation of the company’s defined benefit pension and other postretirement plans.
5 – These expenses were recognized at FedEx Corporate, FedEx Express, and FedEx Ground.
6 – These expenses were recognized at FedEx Express.
7 – These amounts were recognized at FedEx Corporate.
8 – Asset impairment charges were recognized at FedEx Express and FedEx Dataworks.
The charges recognized at FedEx Dataworks are related to the ShopRunner
acquisition. Goodwill impairment charges recognized at FedEx Dataworks are not
deductible for income tax purposes.
9 – These expenses were recognized at FedEx Corporate and FedEx Express.
10 – The MTM retirement plans accounting adjustments, which are impracticable to
calculate at this time, are excluded.
13
FEDEX CORP. FINANCIAL HIGHLIGHTS
Fourth Quarter Fiscal 2024
(In millions, except earnings per share)
(Unaudited)
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
Percent Change |
|
|
2024 |
|
|
2023 |
|
|
Percent Change |
|
||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
FedEx Express segment |
|
$ |
10,417 |
|
|
$ |
10,407 |
|
|
|
0 |
|
|
$ |
40,857 |
|
|
$ |
42,743 |
|
|
|
(4 |
) |
FedEx Ground segment |
|
|
8,494 |
|
|
|
8,296 |
|
|
|
2 |
|
|
|
34,256 |
|
|
|
33,507 |
|
|
|
2 |
|
FedEx Freight segment |
|
|
2,306 |
|
|
|
2,269 |
|
|
|
2 |
|
|
|
9,082 |
|
|
|
9,632 |
|
|
|
(6 |
) |
FedEx Services segment |
|
|
59 |
|
|
|
76 |
|
|
|
(22 |
) |
|
|
260 |
|
|
|
301 |
|
|
|
(14 |
) |
Other and eliminations1 |
|
|
833 |
|
|
|
882 |
|
|
|
(6 |
) |
|
|
3,238 |
|
|
|
3,972 |
|
|
|
(18 |
) |
Total Revenue |
|
|
22,109 |
|
|
|
21,930 |
|
|
|
1 |
|
|
|
87,693 |
|
|
|
90,155 |
|
|
|
(3 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Salaries and employee benefits |
|
|
7,650 |
|
|
|
7,551 |
|
|
|
1 |
|
|
|
30,961 |
|
|
|
31,019 |
|
|
|
— |
|
Purchased transportation |
|
|
5,145 |
|
|
|
4,956 |
|
|
|
4 |
|
|
|
20,921 |
|
|
|
21,790 |
|
|
|
(4 |
) |
Rentals and landing fees |
|
|
1,137 |
|
|
|
1,179 |
|
|
|
(4 |
) |
|
|
4,571 |
|
|
|
4,738 |
|
|
|
(4 |
) |
Depreciation and amortization |
|
|
1,104 |
|
|
|
1,075 |
|
|
|
3 |
|
|
|
4,287 |
|
|
|
4,176 |
|
|
|
3 |
|
Fuel |
|
|
1,141 |
|
|
|
1,144 |
|
|
|
— |
|
|
|
4,710 |
|
|
|
5,909 |
|
|
|
(20 |
) |
Maintenance and repairs |
|
|
809 |
|
|
|
782 |
|
|
|
3 |
|
|
|
3,291 |
|
|
|
3,357 |
|
|
|
(2 |
) |
Goodwill and other asset impairment charges2 |
|
|
157 |
|
|
|
117 |
|
|
|
34 |
|
|
|
157 |
|
|
|
117 |
|
|
|
34 |
|
Business optimization and realignment costs3 |
|
|
218 |
|
|
|
112 |
|
|
|
95 |
|
|
|
582 |
|
|
|
309 |
|
|
|
88 |
|
Other4 |
|
|
3,193 |
|
|
|
3,511 |
|
|
|
(9 |
) |
|
|
12,654 |
|
|
|
13,828 |
|
|
|
(8 |
) |
Total Operating Expenses |
|
|
20,554 |
|
|
|
20,427 |
|
|
|
1 |
|
|
|
82,134 |
|
|
|
85,243 |
|
|
|
(4 |
) |
Operating Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
FedEx Express segment |
|
|
201 |
|
|
|
430 |
|
|
|
(53 |
) |
|
|
776 |
|
|
|
1,064 |
|
|
|
(27 |
) |
FedEx Ground segment |
|
|
1,104 |
|
|
|
1,004 |
|
|
|
10 |
|
|
|
4,049 |
|
|
|
3,140 |
|
|
|
29 |
|
FedEx Freight segment |
|
|
506 |
|
|
|
448 |
|
|
|
13 |
|
|
|
1,814 |
|
|
|
1,925 |
|
|
|
(6 |
) |
Corporate, other, and eliminations1 |
|
|
(256 |
) |
|
|
(379 |
) |
|
|
(32 |
) |
|
|
(1,080 |
) |
|
|
(1,217 |
) |
|
|
(11 |
) |
Total Operating Income |
|
|
1,555 |
|
|
|
1,503 |
|
|
|
3 |
|
|
|
5,559 |
|
|
|
4,912 |
|
|
|
13 |
|
Other (Expense) Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest, net |
|
|
(96 |
) |
|
|
(105 |
) |
|
|
(9 |
) |
|
|
(375 |
) |
|
|
(496 |
) |
|
|
(24 |
) |
Other retirement plans income (expense)5 |
|
|
602 |
|
|
|
750 |
|
|
|
(20 |
) |
|
|
722 |
|
|
|
1,054 |
|
|
|
(31 |
) |
Other, net |
|
|
(33 |
) |
|
|
(20 |
) |
|
|
65 |
|
|
|
(70 |
) |
|
|
(107 |
) |
|
|
(35 |
) |
Total Other (Expense) Income |
|
|
473 |
|
|
|
625 |
|
|
|
(24 |
) |
|
|
277 |
|
|
|
451 |
|
|
|
(39 |
) |
Income Before Income Taxes |
|
|
2,028 |
|
|
|
2,128 |
|
|
|
(5 |
) |
|
|
5,836 |
|
|
|
5,363 |
|
|
|
9 |
|
Provision for Income Taxes6 |
|
|
554 |
|
|
|
590 |
|
|
|
(6 |
) |
|
|
1,505 |
|
|
|
1,391 |
|
|
|
8 |
|
Net Income |
|
$ |
1,474 |
|
|
$ |
1,538 |
|
|
|
(4 |
) |
|
$ |
4,331 |
|
|
$ |
3,972 |
|
|
|
9 |
|
Diluted Earnings Per Share |
|
$ |
5.94 |
|
|
$ |
6.05 |
|
|
|
(2 |
) |
|
$ |
17.21 |
|
|
$ |
15.48 |
|
|
|
11 |
|
Weighted Average Common and |
|
|
248 |
|
|
|
254 |
|
|
|
(2 |
) |
|
|
251 |
|
|
|
256 |
|
|
|
(2 |
) |
Capital Expenditures |
|
$ |
1,202 |
|
|
$ |
1,754 |
|
|
|
(31 |
) |
|
$ |
5,176 |
|
|
$ |
6,174 |
|
|
|
(16 |
) |
1 – Includes the FedEx Office, FedEx Logistics, and FedEx Dataworks operating segments.
2 – Includes asset impairment charges of $157 million at the FedEx Express segment associated with the decision to permanently retire certain aircraft and related engines for the fourth quarter and full year of fiscal 2024. Also includes goodwill and other asset impairment charges of $70 million at the FedEx Express segment associated with the decision to permanently retire certain aircraft and related engines for the fourth quarter and full year of fiscal 2023 and $47 million at the FedEx Dataworks operating segment for the fourth quarter and full year of fiscal 2023.
3 – Includes business optimization costs associated with our business optimization strategy announced in 2023 of $218 million in the fourth quarter and $582 million for the full year of fiscal 2024, and $93 million in the fourth quarter and $273 million for the full year of fiscal 2023. Also includes business realignment costs associated with the workforce reduction plan in Europe of $19 million for the fourth quarter and $36 million for the full year of fiscal 2023.
4 – Includes $57 million for the fourth quarter and full year of fiscal 2024 in connection with insurance recoveries related to a FedEx Ground legal matter, and $35 million for the fourth quarter and full year of fiscal 2023 in connection with a separate legal matter involving FedEx Ground.
5 – Includes a $561 million MTM adjustment for the fourth quarter and full year of fiscal 2024 and a $650 million MTM adjustment for the fourth quarter and full year of fiscal 2023.
6 – Includes $54 million for the fourth quarter and full year of fiscal 2024 associated with the remeasurement of state deferred income taxes under the one FedEx structure.
14
FEDEX CORP. CONDENSED CONSOLIDATED BALANCE SHEETS
Fourth Quarter Fiscal 2024
(In millions)
(Unaudited)
|
|
Year Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
ASSETS |
|
|
|
|
|
|
||
Current Assets |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
6,501 |
|
|
$ |
6,856 |
|
Receivables, less allowances |
|
|
10,087 |
|
|
|
10,188 |
|
Spare parts, supplies, and fuel, less allowances |
|
|
614 |
|
|
|
604 |
|
Prepaid expenses and other |
|
|
1,005 |
|
|
|
962 |
|
Total current assets |
|
|
18,207 |
|
|
|
18,610 |
|
Property and Equipment, at Cost |
|
|
84,391 |
|
|
|
80,624 |
|
Less accumulated depreciation and amortization |
|
|
42,900 |
|
|
|
39,926 |
|
Net property and equipment |
|
|
41,491 |
|
|
|
40,698 |
|
Other Long-Term Assets |
|
|
|
|
|
|
||
Operating lease right-of-use assets, net |
|
|
17,115 |
|
|
|
17,347 |
|
Goodwill |
|
|
6,423 |
|
|
|
6,435 |
|
Other assets |
|
|
3,771 |
|
|
|
4,053 |
|
Total other long-term assets |
|
|
27,309 |
|
|
|
27,835 |
|
|
|
$ |
87,007 |
|
|
$ |
87,143 |
|
LIABILITIES AND COMMON STOCKHOLDERS' |
|
|
|
|
|
|
||
Current Liabilities |
|
|
|
|
|
|
||
Current portion of long-term debt |
|
$ |
68 |
|
|
$ |
126 |
|
Accrued salaries and employee benefits |
|
|
2,673 |
|
|
|
2,475 |
|
Accounts payable |
|
|
3,189 |
|
|
|
3,848 |
|
Operating lease liabilities |
|
|
2,463 |
|
|
|
2,390 |
|
Accrued expenses |
|
|
4,962 |
|
|
|
4,747 |
|
Total current liabilities |
|
|
13,355 |
|
|
|
13,586 |
|
Long-Term Debt, Less Current Portion |
|
|
20,135 |
|
|
|
20,453 |
|
Other Long-Term Liabilities |
|
|
|
|
|
|
||
Deferred income taxes |
|
|
4,482 |
|
|
|
4,489 |
|
Pension, postretirement healthcare, and other benefit obligations |
|
|
2,010 |
|
|
|
3,130 |
|
Self-insurance accruals |
|
|
3,701 |
|
|
|
3,339 |
|
Operating lease liabilities |
|
|
15,053 |
|
|
|
15,363 |
|
Other liabilities |
|
|
689 |
|
|
|
695 |
|
Total other long-term liabilities |
|
|
25,935 |
|
|
|
27,016 |
|
Commitments and Contingencies |
|
|
|
|
|
|
||
Common Stockholders' Investment |
|
|
|
|
|
|
||
Common stock, $0.10 par value, 800 million shares authorized |
|
|
32 |
|
|
|
32 |
|
Additional paid-in capital |
|
|
3,988 |
|
|
|
3,769 |
|
Retained earnings |
|
|
38,649 |
|
|
|
35,259 |
|
Accumulated other comprehensive loss |
|
|
(1,359 |
) |
|
|
(1,327 |
) |
Treasury stock, at cost |
|
|
(13,728 |
) |
|
|
(11,645 |
) |
Total common stockholders' investment |
|
|
27,582 |
|
|
|
26,088 |
|
|
|
$ |
87,007 |
|
|
$ |
87,143 |
|
15
FEDEX CORP. CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
Fourth Quarter Fiscal 2024
(In millions)
(Unaudited)
|
|
Year Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Operating Activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
4,331 |
|
|
$ |
3,972 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
4,287 |
|
|
|
4,176 |
|
Retirement plans mark-to-market adjustments |
|
|
(561 |
) |
|
|
(650 |
) |
Goodwill and other asset impairment charges |
|
|
157 |
|
|
|
117 |
|
Business optimization and realignment costs/(payments), net |
|
|
26 |
|
|
|
23 |
|
Other, net |
|
|
3,503 |
|
|
|
4,350 |
|
Changes in operating assets and liabilities, net |
|
|
(3,431 |
) |
|
|
(3,140 |
) |
Net cash provided by operating activities |
|
|
8,312 |
|
|
|
8,848 |
|
Investing Activities: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
(5,176 |
) |
|
|
(6,174 |
) |
Purchase of investments |
|
|
(176 |
) |
|
|
(84 |
) |
Proceeds from sale of investments |
|
|
38 |
|
|
|
— |
|
Proceeds from asset dispositions and other |
|
|
114 |
|
|
|
84 |
|
Net cash used in investing activities |
|
|
(5,200 |
) |
|
|
(6,174 |
) |
Financing Activities: |
|
|
|
|
|
|
||
Principal payments on debt |
|
|
(147 |
) |
|
|
(152 |
) |
Proceeds from stock issuances |
|
|
491 |
|
|
|
231 |
|
Dividends paid |
|
|
(1,259 |
) |
|
|
(1,177 |
) |
Purchase of treasury stock |
|
|
(2,500 |
) |
|
|
(1,500 |
) |
Other, net |
|
|
(11 |
) |
|
|
1 |
|
Cash used in financing activities |
|
|
(3,426 |
) |
|
|
(2,597 |
) |
Effect of exchange rate changes on cash |
|
|
(41 |
) |
|
|
(118 |
) |
Net decrease in cash and cash equivalents |
|
|
(355 |
) |
|
|
(41 |
) |
Cash and cash equivalents at beginning of period |
|
|
6,856 |
|
|
|
6,897 |
|
Cash and cash equivalents at end of period |
|
$ |
6,501 |
|
|
$ |
6,856 |
|
16
FEDEX EXPRESS SEGMENT FINANCIAL HIGHLIGHTS
Fourth Quarter Fiscal 2024
(Dollars in millions)
(Unaudited)
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
Percent Change |
|
|
2024 |
|
|
2023 |
|
|
Percent Change |
|
||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Package Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Overnight Box |
|
$ |
2,198 |
|
|
$ |
2,198 |
|
|
|
— |
|
|
$ |
8,689 |
|
|
$ |
8,916 |
|
|
|
(3 |
) |
U.S. Overnight Envelope |
|
|
472 |
|
|
|
503 |
|
|
|
(6 |
) |
|
|
1,854 |
|
|
|
1,980 |
|
|
|
(6 |
) |
Total U.S. Overnight |
|
|
2,670 |
|
|
|
2,701 |
|
|
|
(1 |
) |
|
|
10,543 |
|
|
|
10,896 |
|
|
|
(3 |
) |
U.S. Deferred |
|
|
1,216 |
|
|
|
1,242 |
|
|
|
(2 |
) |
|
|
4,928 |
|
|
|
5,128 |
|
|
|
(4 |
) |
Total U.S. Package Revenue |
|
|
3,886 |
|
|
|
3,943 |
|
|
|
(1 |
) |
|
|
15,471 |
|
|
|
16,024 |
|
|
|
(3 |
) |
International Priority |
|
|
2,420 |
|
|
|
2,653 |
|
|
|
(9 |
) |
|
|
9,455 |
|
|
|
10,939 |
|
|
|
(14 |
) |
International Economy |
|
|
1,150 |
|
|
|
795 |
|
|
|
45 |
|
|
|
4,273 |
|
|
|
2,911 |
|
|
|
47 |
|
Total International Export |
|
|
3,570 |
|
|
|
3,448 |
|
|
|
4 |
|
|
|
13,728 |
|
|
|
13,850 |
|
|
|
(1 |
) |
International Domestic1 |
|
|
1,052 |
|
|
|
1,030 |
|
|
|
2 |
|
|
|
4,178 |
|
|
|
4,043 |
|
|
|
3 |
|
Total Package Revenue |
|
|
8,508 |
|
|
|
8,421 |
|
|
|
1 |
|
|
|
33,377 |
|
|
|
33,917 |
|
|
|
(2 |
) |
Freight Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. |
|
|
604 |
|
|
|
607 |
|
|
|
— |
|
|
|
2,418 |
|
|
|
2,906 |
|
|
|
(17 |
) |
International Priority |
|
|
563 |
|
|
|
674 |
|
|
|
(16 |
) |
|
|
2,205 |
|
|
|
3,060 |
|
|
|
(28 |
) |
International Economy |
|
|
441 |
|
|
|
387 |
|
|
|
14 |
|
|
|
1,677 |
|
|
|
1,510 |
|
|
|
11 |
|
International Airfreight |
|
|
34 |
|
|
|
39 |
|
|
|
(13 |
) |
|
|
126 |
|
|
|
166 |
|
|
|
(24 |
) |
Total Freight Revenue |
|
|
1,642 |
|
|
|
1,707 |
|
|
|
(4 |
) |
|
|
6,426 |
|
|
|
7,642 |
|
|
|
(16 |
) |
Other Revenue |
|
|
267 |
|
|
|
279 |
|
|
|
(4 |
) |
|
|
1,054 |
|
|
|
1,184 |
|
|
|
(11 |
) |
Total Express Revenue |
|
$ |
10,417 |
|
|
$ |
10,407 |
|
|
|
— |
|
|
$ |
40,857 |
|
|
$ |
42,743 |
|
|
|
(4 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Salaries and employee benefits |
|
|
3,952 |
|
|
|
3,896 |
|
|
|
1 |
|
|
|
15,810 |
|
|
|
15,899 |
|
|
|
(1 |
) |
Purchased transportation |
|
|
1,464 |
|
|
|
1,346 |
|
|
|
9 |
|
|
|
5,755 |
|
|
|
5,629 |
|
|
|
2 |
|
Rentals and landing fees |
|
|
509 |
|
|
|
559 |
|
|
|
(9 |
) |
|
|
2,071 |
|
|
|
2,310 |
|
|
|
(10 |
) |
Depreciation and amortization |
|
|
555 |
|
|
|
539 |
|
|
|
3 |
|
|
|
2,172 |
|
|
|
2,105 |
|
|
|
3 |
|
Fuel |
|
|
1,000 |
|
|
|
989 |
|
|
|
1 |
|
|
|
4,105 |
|
|
|
5,122 |
|
|
|
(20 |
) |
Maintenance and repairs |
|
|
456 |
|
|
|
448 |
|
|
|
2 |
|
|
|
1,905 |
|
|
|
2,000 |
|
|
|
(5 |
) |
Asset impairment charges |
|
|
157 |
|
|
|
70 |
|
|
|
124 |
|
|
|
157 |
|
|
|
70 |
|
|
|
124 |
|
Business optimization and realignment costs |
|
|
69 |
|
|
|
19 |
|
|
|
263 |
|
|
|
143 |
|
|
|
47 |
|
|
|
204 |
|
Intercompany charges |
|
|
492 |
|
|
|
476 |
|
|
|
3 |
|
|
|
1,917 |
|
|
|
1,896 |
|
|
|
1 |
|
Other |
|
|
1,562 |
|
|
|
1,635 |
|
|
|
(4 |
) |
|
|
6,046 |
|
|
|
6,601 |
|
|
|
(8 |
) |
Total Operating Expenses |
|
|
10,216 |
|
|
|
9,977 |
|
|
|
2 |
|
|
|
40,081 |
|
|
|
41,679 |
|
|
|
(4 |
) |
Operating Income |
|
$ |
201 |
|
|
$ |
430 |
|
|
|
(53 |
) |
|
$ |
776 |
|
|
$ |
1,064 |
|
|
|
(27 |
) |
Operating Margin |
|
|
1.9 |
% |
|
|
4.1 |
% |
|
(2.2 pts) |
|
|
|
1.9 |
% |
|
|
2.5 |
% |
|
(0.6 pts) |
|
||
1 – International Domestic revenue relates to international intra-country operations.
17
FEDEX EXPRESS SEGMENT OPERATING HIGHLIGHTS
Fourth Quarter Fiscal 2024
(Unaudited)
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
Percent Change |
|
|
2024 |
|
|
2023 |
|
|
Percent Change |
|
||||||
PACKAGE STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average Daily Package Volume (000s): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Overnight Box |
|
|
1,188 |
|
|
|
1,214 |
|
|
|
(2 |
) |
|
|
1,220 |
|
|
|
1,259 |
|
|
|
(3 |
) |
U.S. Overnight Envelope |
|
|
417 |
|
|
|
462 |
|
|
|
(10 |
) |
|
|
429 |
|
|
|
465 |
|
|
|
(8 |
) |
Total U.S. Overnight Package |
|
|
1,605 |
|
|
|
1,676 |
|
|
|
(4 |
) |
|
|
1,649 |
|
|
|
1,724 |
|
|
|
(4 |
) |
U.S. Deferred |
|
|
978 |
|
|
|
1,002 |
|
|
|
(2 |
) |
|
|
1,014 |
|
|
|
1,063 |
|
|
|
(5 |
) |
Total U.S. Domestic Package |
|
|
2,583 |
|
|
|
2,678 |
|
|
|
(4 |
) |
|
|
2,663 |
|
|
|
2,787 |
|
|
|
(4 |
) |
International Priority |
|
|
674 |
|
|
|
695 |
|
|
|
(3 |
) |
|
|
668 |
|
|
|
708 |
|
|
|
(6 |
) |
International Economy |
|
|
381 |
|
|
|
285 |
|
|
|
34 |
|
|
|
362 |
|
|
|
278 |
|
|
|
30 |
|
Total International Export Package |
|
|
1,055 |
|
|
|
980 |
|
|
|
8 |
|
|
|
1,030 |
|
|
|
986 |
|
|
|
4 |
|
International Domestic1 |
|
|
1,724 |
|
|
|
1,764 |
|
|
|
(2 |
) |
|
|
1,770 |
|
|
|
1,805 |
|
|
|
(2 |
) |
Total Average Daily Packages |
|
|
5,362 |
|
|
|
5,422 |
|
|
|
(1 |
) |
|
|
5,463 |
|
|
|
5,578 |
|
|
|
(2 |
) |
Yield (Revenue Per Package): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Overnight Box |
|
$ |
28.46 |
|
|
$ |
27.85 |
|
|
|
2 |
|
|
$ |
27.82 |
|
|
$ |
27.77 |
|
|
|
— |
|
U.S. Overnight Envelope |
|
|
17.38 |
|
|
|
16.74 |
|
|
|
4 |
|
|
|
16.88 |
|
|
|
16.71 |
|
|
|
1 |
|
U.S. Overnight Composite |
|
|
25.58 |
|
|
|
24.79 |
|
|
|
3 |
|
|
|
24.98 |
|
|
|
24.79 |
|
|
|
1 |
|
U.S. Deferred |
|
|
19.14 |
|
|
|
19.08 |
|
|
|
— |
|
|
|
18.98 |
|
|
|
18.91 |
|
|
|
— |
|
U.S. Domestic Composite |
|
|
23.14 |
|
|
|
22.65 |
|
|
|
2 |
|
|
|
22.69 |
|
|
|
22.54 |
|
|
|
1 |
|
International Priority |
|
|
55.25 |
|
|
|
58.75 |
|
|
|
(6 |
) |
|
|
55.35 |
|
|
|
60.62 |
|
|
|
(9 |
) |
International Economy |
|
|
46.46 |
|
|
|
42.85 |
|
|
|
8 |
|
|
|
46.09 |
|
|
|
41.12 |
|
|
|
12 |
|
Total International Export Composite |
|
|
52.08 |
|
|
|
54.12 |
|
|
|
(4 |
) |
|
|
52.10 |
|
|
|
55.13 |
|
|
|
(5 |
) |
International Domestic1 |
|
|
9.39 |
|
|
|
8.99 |
|
|
|
4 |
|
|
|
9.22 |
|
|
|
8.78 |
|
|
|
5 |
|
Composite Package Yield |
|
$ |
24.41 |
|
|
$ |
23.90 |
|
|
|
2 |
|
|
$ |
23.87 |
|
|
$ |
23.85 |
|
|
|
— |
|
FREIGHT STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average Daily Freight Pounds (000s): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. |
|
|
5,554 |
|
|
|
5,465 |
|
|
|
2 |
|
|
|
5,658 |
|
|
|
6,735 |
|
|
|
(16 |
) |
International Priority |
|
|
4,558 |
|
|
|
4,656 |
|
|
|
(2 |
) |
|
|
4,443 |
|
|
|
5,435 |
|
|
|
(18 |
) |
International Economy |
|
|
10,028 |
|
|
|
10,162 |
|
|
|
(1 |
) |
|
|
9,909 |
|
|
|
10,591 |
|
|
|
(6 |
) |
International Airfreight |
|
|
810 |
|
|
|
950 |
|
|
|
(15 |
) |
|
|
754 |
|
|
|
998 |
|
|
|
(24 |
) |
Total Avg Daily Freight Pounds |
|
|
20,950 |
|
|
|
21,233 |
|
|
|
(1 |
) |
|
|
20,764 |
|
|
|
23,759 |
|
|
|
(13 |
) |
Revenue Per Freight Pound: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. |
|
$ |
1.67 |
|
|
$ |
1.71 |
|
|
|
(2 |
) |
|
$ |
1.67 |
|
|
$ |
1.69 |
|
|
|
(1 |
) |
International Priority |
|
|
1.90 |
|
|
|
2.22 |
|
|
|
(14 |
) |
|
|
1.94 |
|
|
|
2.21 |
|
|
|
(12 |
) |
International Economy |
|
|
0.68 |
|
|
|
0.59 |
|
|
|
15 |
|
|
|
0.66 |
|
|
|
0.56 |
|
|
|
18 |
|
International Airfreight |
|
|
0.65 |
|
|
|
0.64 |
|
|
|
2 |
|
|
|
0.65 |
|
|
|
0.65 |
|
|
|
— |
|
Composite Freight Yield |
|
$ |
1.21 |
|
|
$ |
1.24 |
|
|
|
(2 |
) |
|
$ |
1.21 |
|
|
$ |
1.26 |
|
|
|
(4 |
) |
Operating Weekdays |
|
|
65 |
|
|
|
65 |
|
|
|
— |
|
|
|
256 |
|
|
|
255 |
|
|
|
— |
|
1 – International Domestic revenue relates to international intra-country operations.
18
FEDEX GROUND SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
Fourth Quarter Fiscal 2024
(Dollars in millions)
(Unaudited)
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
Percent Change |
|
|
2024 |
|
|
2023 |
|
|
Percent Change |
|
||||||
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue |
|
$ |
8,494 |
|
|
$ |
8,296 |
|
|
|
2 |
|
|
$ |
34,256 |
|
|
$ |
33,507 |
|
|
|
2 |
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Salaries and employee benefits |
|
|
1,634 |
|
|
|
1,614 |
|
|
|
1 |
|
|
|
6,795 |
|
|
|
6,737 |
|
|
|
1 |
|
Purchased transportation |
|
|
3,406 |
|
|
|
3,334 |
|
|
|
2 |
|
|
|
14,181 |
|
|
|
14,597 |
|
|
|
(3 |
) |
Rentals |
|
|
434 |
|
|
|
431 |
|
|
|
1 |
|
|
|
1,732 |
|
|
|
1,661 |
|
|
|
4 |
|
Depreciation and amortization |
|
|
283 |
|
|
|
267 |
|
|
|
6 |
|
|
|
1,119 |
|
|
|
1,020 |
|
|
|
10 |
|
Fuel |
|
|
7 |
|
|
|
8 |
|
|
|
(13 |
) |
|
|
32 |
|
|
|
36 |
|
|
|
(11 |
) |
Maintenance and repairs |
|
|
183 |
|
|
|
162 |
|
|
|
13 |
|
|
|
695 |
|
|
|
634 |
|
|
|
10 |
|
Business optimization costs |
|
|
33 |
|
|
|
— |
|
|
|
|
|
|
108 |
|
|
|
— |
|
|
|
|
||
Intercompany charges |
|
|
509 |
|
|
|
495 |
|
|
|
3 |
|
|
|
1,992 |
|
|
|
1,961 |
|
|
|
2 |
|
Other |
|
|
901 |
|
|
|
981 |
|
|
|
(8 |
) |
|
|
3,553 |
|
|
|
3,721 |
|
|
|
(5 |
) |
Total Operating Expenses |
|
|
7,390 |
|
|
|
7,292 |
|
|
|
1 |
|
|
|
30,207 |
|
|
|
30,367 |
|
|
|
(1 |
) |
Operating Income |
|
$ |
1,104 |
|
|
$ |
1,004 |
|
|
|
10 |
|
|
$ |
4,049 |
|
|
$ |
3,140 |
|
|
|
29 |
|
Operating Margin |
|
|
13.0 |
% |
|
|
12.1 |
% |
|
0.9 pts |
|
|
|
11.8 |
% |
|
|
9.4 |
% |
|
2.4 pts |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
OPERATING STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Ground Commercial Operating Weekdays |
|
|
65 |
|
|
|
65 |
|
|
|
— |
|
|
|
256 |
|
|
|
257 |
|
|
|
— |
|
Home Delivery and Economy Operating Days |
|
|
91 |
|
|
|
91 |
|
|
|
— |
|
|
|
360 |
|
|
|
359 |
|
|
|
— |
|
Average Daily Package Volume (000s)1: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Ground Commercial |
|
|
4,447 |
|
|
|
4,329 |
|
|
|
3 |
|
|
|
4,483 |
|
|
|
4,361 |
|
|
|
3 |
|
Home Delivery |
|
|
3,698 |
|
|
|
3,743 |
|
|
|
(1 |
) |
|
|
3,941 |
|
|
|
4,021 |
|
|
|
(2 |
) |
Economy |
|
|
762 |
|
|
|
726 |
|
|
|
5 |
|
|
|
810 |
|
|
|
781 |
|
|
|
4 |
|
Total Average Daily Package Volume |
|
|
8,907 |
|
|
|
8,798 |
|
|
|
1 |
|
|
|
9,234 |
|
|
|
9,163 |
|
|
|
1 |
|
Yield (Revenue Per Package) |
|
$ |
12.09 |
|
|
$ |
11.97 |
|
|
|
1 |
|
|
$ |
11.86 |
|
|
$ |
11.70 |
|
|
|
1 |
|
1 – As FedEx Ground has expanded seven-day-per-week residential delivery coverage, 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.
19
FEDEX FREIGHT SEGMENT FINANCIAL AND OPERATING HIGHLIGHTS
Fourth Quarter Fiscal 2024
(Dollars in millions)
(Unaudited)
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
||||||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
Percent Change |
|
|
2024 |
|
|
2023 |
|
|
Percent Change |
|
||||||
FINANCIAL HIGHLIGHTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue |
|
$ |
2,306 |
|
|
$ |
2,269 |
|
|
|
2 |
|
|
$ |
9,082 |
|
|
$ |
9,632 |
|
|
|
(6 |
) |
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Salaries and employee benefits |
|
|
951 |
|
|
|
958 |
|
|
|
(1 |
) |
|
|
3,880 |
|
|
|
4,002 |
|
|
|
(3 |
) |
Purchased transportation |
|
|
148 |
|
|
|
151 |
|
|
|
(2 |
) |
|
|
618 |
|
|
|
731 |
|
|
|
(15 |
) |
Rentals |
|
|
70 |
|
|
|
68 |
|
|
|
3 |
|
|
|
275 |
|
|
|
266 |
|
|
|
3 |
|
Depreciation and amortization |
|
|
107 |
|
|
|
104 |
|
|
|
3 |
|
|
|
402 |
|
|
|
387 |
|
|
|
4 |
|
Fuel |
|
|
134 |
|
|
|
147 |
|
|
|
(9 |
) |
|
|
570 |
|
|
|
748 |
|
|
|
(24 |
) |
Maintenance and repairs |
|
|
82 |
|
|
|
74 |
|
|
|
11 |
|
|
|
328 |
|
|
|
318 |
|
|
|
3 |
|
Intercompany charges |
|
|
134 |
|
|
|
133 |
|
|
|
1 |
|
|
|
528 |
|
|
|
526 |
|
|
|
— |
|
Other |
|
|
174 |
|
|
|
186 |
|
|
|
(6 |
) |
|
|
667 |
|
|
|
729 |
|
|
|
(9 |
) |
Total Operating Expenses |
|
|
1,800 |
|
|
|
1,821 |
|
|
|
(1 |
) |
|
|
7,268 |
|
|
|
7,707 |
|
|
|
(6 |
) |
Operating Income |
|
$ |
506 |
|
|
$ |
448 |
|
|
|
13 |
|
|
$ |
1,814 |
|
|
$ |
1,925 |
|
|
|
(6 |
) |
Operating Margin |
|
|
21.9 |
% |
|
|
19.7 |
% |
|
2.2 pts |
|
|
|
20.0 |
% |
|
|
20.0 |
% |
|
(0 pts) |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
OPERATING STATISTICS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating Weekdays |
|
|
65 |
|
|
|
65 |
|
|
|
— |
|
|
|
254 |
|
|
|
253 |
|
|
|
— |
|
Average Daily Shipments (000s): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Priority |
|
|
63.6 |
|
|
|
65.5 |
|
|
|
(3 |
) |
|
|
64.9 |
|
|
|
70.1 |
|
|
|
(7 |
) |
Economy |
|
|
29.5 |
|
|
|
27.5 |
|
|
|
7 |
|
|
|
29.1 |
|
|
|
29.6 |
|
|
|
(2 |
) |
Total Average Daily Shipments |
|
|
93.1 |
|
|
|
93.0 |
|
|
|
— |
|
|
|
94.0 |
|
|
|
99.7 |
|
|
|
(6 |
) |
Weight Per Shipment (lbs): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Priority |
|
|
970 |
|
|
|
1,004 |
|
|
|
(3 |
) |
|
|
977 |
|
|
|
1,027 |
|
|
|
(5 |
) |
Economy |
|
|
871 |
|
|
|
873 |
|
|
|
— |
|
|
|
878 |
|
|
|
912 |
|
|
|
(4 |
) |
Composite Weight Per Shipment |
|
|
939 |
|
|
|
966 |
|
|
|
(3 |
) |
|
|
946 |
|
|
|
993 |
|
|
|
(5 |
) |
Revenue/Shipment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Priority |
|
$ |
364.11 |
|
|
$ |
357.44 |
|
|
|
2 |
|
|
$ |
361.38 |
|
|
$ |
363.85 |
|
|
|
(1 |
) |
Economy |
|
|
406.73 |
|
|
|
411.62 |
|
|
|
(1 |
) |
|
|
411.25 |
|
|
|
417.50 |
|
|
|
(1 |
) |
Composite Revenue/Shipment |
|
$ |
377.63 |
|
|
$ |
373.43 |
|
|
|
1 |
|
|
$ |
376.81 |
|
|
$ |
379.76 |
|
|
|
(1 |
) |
Revenue/CWT: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Priority |
|
$ |
37.52 |
|
|
$ |
35.60 |
|
|
|
5 |
|
|
$ |
36.98 |
|
|
$ |
35.44 |
|
|
|
4 |
|
Economy |
|
|
46.70 |
|
|
|
47.13 |
|
|
|
(1 |
) |
|
|
46.86 |
|
|
|
45.78 |
|
|
|
2 |
|
Composite Revenue/CWT |
|
$ |
40.22 |
|
|
$ |
38.68 |
|
|
|
4 |
|
|
$ |
39.82 |
|
|
$ |
38.26 |
|
|
|
4 |
|
20
-8?20$3;8T.P6BP^0"X99K>]9!:G