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Revenues, margins down at FedEx

[ September 20, 2024   //   ]

FedEx has reported first quarter revenue figures (ending August 31) marginally lower at $21.6 billion compared with $21.7m in same period of 2024 while operating margin was down from 7.3% to 5.6% It said results were negatively affected by reduced demand for priority services, increased demand for deferred services, and constrained yield growth. In addition, higher operating expenses and one fewer operating day negatively affected the quarter’s results, although this was partially offset by reduced structural costs from the company’s DRIVE program.

President and chief executive officer, Raj Subramaniam, said: “Despite a challenging quarter, we remain focused on transforming our network, improving our efficiency, lowering our cost-to-serve, and enhancing our ability to adapt with speed to evolving market dynamics. Overall, I remain confident in the value-creation opportunities ahead as we focus on reducing our structural cost, growing revenue profitably, and leveraging the insights from our vast collection of data as we continue to build the world’s most flexible, efficient and intelligent network.”

On June 1, FedEx Ground and FedEx Services were merged into Federal Express, operating a fully integrated air-ground express network. It continues to provide less-than-truckload freight transportation services as a separate subsidiary. Federal Express and FedEx Freight now represent the company’s major service lines.

FedEx Freight continues to execute its long-term strategy of streamlining its network, completing the closure of seven small-market facilities during the quarter.

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