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FedEx Freight | Quarterly Report is public

SwampRatt

SwampRatt

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http://investors.fedex.com/news-and...p-Reports-Third-Quarter-Earnings/default.aspx

FedEx Freight Segment

For the third quarter, the FedEx Freight segment reported:


Fiscal 2018

Revenue: $1.69 billion

Operating income: $55 million

Operating margin :3.2%



Revenue increased due to less-than-truckload (LTL) revenue per shipment growth of 8% and average daily LTL shipment growth of 6%.

Operating results improved primarily due to the benefit from higher LTL revenue per shipment, partially offset by higher variable compensation accruals.
 
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Cedar Rapids,IA. (AP) Coop Dispatch projects 1st quarter earnings....Head of Dispatch Operations, Big Dave, stated that he could not comment at this time on earnings because current tonnage figures,previously were anticipated to improve yield per hundred weight,per shipment,per day,per monthly figures, that were calculated a month earlier, which are normally released on the 3 quarter projections from 2 years prior to the second to the last year,before the year 2010. The figures he did release were only relative,to the newly opened,Boardwalk Division,specializing in installation,maintenance, and rebuilding of boardwalks,that needed emergency repairs caused by doofus drivers,who may,or may not had been at one time or another,employed by Coop,or one of their 36 subsidiaries,and may still have revenue generating possibilities, to add profit to the final figures, that are to be announced prior to the next BOD meeting....Spokesperson, BD Wong, maintained he anticipates a profit 15 percent or higher....
 
FedEx's (FDX) CEO Fred Smith on Q3 2018 Results - Earnings Call Transcript

https://seekingalpha.com/article/41...1db3fu0:c7fc80cc801e1c9794406d39ddae072c&dr=1

We can look into it more, when time allows. For now, here's the explanation on the increased Pension funding, Per Alan Graf - EVP & CFO. Just as we suspected...

"A benefit of approximately 200 million from an incremental pension contribution made in February and deductible against the Company's prior year taxes at 35% and a benefit of approximately 170 million attributable to the phase in of the reduced tax rate applied to the Company's year-to-date earnings. Contribution to our U.S. pension plans of 1.5 billion was debt financed. Our U.S. pension plans are currently fully funded. While the funding shows up on the financial statements as a reduction in operating cash flow it provide a tremendous immediate returns in terms of tax savings as well as lower PBGC premiums versus funding the plan at a later date."
 
From the Earnings call:

"...On March 1st, we realigned our specialty logistics and e-commerce solutions in a new organizational structure under FedEx Trade Networks in the Express segment.

The realignment improves our ability to deliver the capabilities of our specialty companies to customers. This realignment will benefit Ground and Freight margins and will negatively impact Express margins starting in Q4. As we announced in January from the enactment of the TCJA, we are advancing our 2018 annual pay increases for certain U.S. hourly workers by six months to April 1st from the normal October day, which will have an impact in our year-over-year salaries and wage expenses beginning in Q4."
 
Couple of quotes:

"FedEx Freight is indeed having its best year in over a decade and we expect the Freight segment will finish the year with an 8% to 9% operating margin in the fourth quarter."

"This is Mike Ducker. Let me just add a couple of brief comments. First of all, congratulations to the FedEx Freight team who had a tremendous peak season as well. As you know, it occurs a little bit earlier than does Ground or Express and as a result of that we were able to provide some support for our other operating companies during that critical time of the year adding to the overall performance of peak season so very pleased and again congrats to our team for the job well done."

On dimensional scanning:

"We currently have about 90 dimensional standards and will soon be adding additional devices... they allow us to capture incremental revenue on shipments that are density based commodities. And secondarily, we capture information for costing system, so that we can more accurately develop pricing for our customers."
 
This interesting tidbit, from Mike Ducker:

"Tesla as a matter of fact soon to be announced that we will be purchasing some Tesla electric vehicles in the near future. Small order, but we think they will have great benefit in our system were testing them in the near future as soon as we can get them off the line."
 
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