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FedEx Freight | 2015 Annual Report

SwampRatt

SwampRatt

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2015 Annual Report is in, and can be found here: http://investors.fedex.com/financial-information/annual-reports/

Since I'm currently on vacation, and avoiding work related stuff, I'll refrain from in depth analysis. But don't let that stop the rest of you from having fun!:cool:

Here's two snapshots to get you started:


jK14qcw.jpg



xIEZCgq.jpg


The obvious observations are salaries and benefits showed a rare increase, as a percentage of revenue AND Purchase transportation cost, as a percentage of revenue, was down (ever so slightly).

:smilie93c peelout:
 
I would guess the benefit increase is due to all the new hires in anticipation of a strong summer that has seemed to fall short of projections. PT is interesting for a drop of .1%. I have seen a dramatic decrease at my center but hear it is out of control at others. Ebb and flow of freight lanes almost balanced it out maybe?
 
Good to see PT finally sliding the right direction, even if it's only a little. If this is anything to go by, the big purple monster may yet do well by everyone. Good job, guys. And a big thumbs up to SwampRatt for his tireless chase of the statistics.
 
Canadian Flyer said:
Good to see PT finally sliding the right direction, even if it's only a little. If this is anything to go by, the big purple monster may yet do well by everyone. Good job, guys. And a big thumbs up to SwampRatt for his tireless chase of the statistics.
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Thanks C-Flyer! We'll see what the details show... It wouldn't take a whole lot to achieve the balance we hope for. Improvement in the trend is certainly promising.

Side note: I see where R&L is hooking up with Day&Ross... Will that help you?
 
SwampRatt said:
Thanks C-Flyer! We'll see what the details show... It wouldn't take a whole lot to achieve the balance we hope for. Improvement in the trend is certainly promising.

Side note: I see where R&L is hooking up with Day&Ross... Will that help you?
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I'd appreciate the info, even if it's not directly pertinent to me at this time. I move cross-country now, though I do haul R&L freight. Seattle out of Toronto and Buffalo out of Vancouver. It's faster for us to drag it across Canada than to dump it on R&L and let them do it. That said, I may go stateside again if the need arises, so it'd be nice to know where the interline terminals are.

I also haven't ruled out returning to FedEx, if they decide to bring the Western Canada freight in-house.
 
Canadian Flyer said:
I'd appreciate the info, even if it's not directly pertinent to me at this time. I move cross-country now, though I do haul R&L freight. Seattle out of Toronto and Buffalo out of Vancouver. It's faster for us to drag it across Canada than to dump it on R&L and let them do it. That said, I may go stateside again if the need arises, so it'd be nice to know where the interline terminals are.

I also haven't ruled out returning to FedEx, if they decide to bring the Western Canada freight in-house.
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Check your Inbox! I sent what I have.. Hope it helps
 
SwampRatt said:
2015 Annual Report is in, and can be found here: http://investors.fedex.com/financial-information/annual-reports/

Since I'm currently on vacation, and avoiding work related stuff, I'll refrain from in depth analysis. But don't let that stop the rest of you from having fun!:cool:

Here's two snapshots to get you started:


jK14qcw.jpg



xIEZCgq.jpg


The obvious observations are salaries and benefits showed a rare increase, as a percentage of revenue AND Purchase transportation cost, as a percentage of revenue, was down (ever so slightly).

:smilie93c peelout:
Click to expand...
Due to the changes, we have to further adjust our most telling visual aid. Still shows the advantage we bring to the table.


6UbJnqk.jpg


Note: the original visual was based on FedEx Corporation numbers. It was adjusted in the past to reflect "Freight" specific numbers.
 
Canadian Flyer said:
Good to see PT finally sliding the right direction, even if it's only a little. If this is anything to go by, the big purple monster may yet do well by everyone. Good job, guys. And a big thumbs up to SwampRatt for his tireless chase of the statistics.
Click to expand...

Actual Purchase Transportation cost went up, even though as a percentage of the bigger pie it show a decline.

"Purchased transportation costs increased 6% in 2015 due to
volume growth and higher service provider rates at FedEx Ground and
volume growth, higher utilization and higher service provider rates
at FedEx Freight." (page 15)
 
In all fairness, and since we don't have tonnage numbers (for P/T) to factor in growth, we have to use percentage of revenue figures.
 
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"Labor organizations attempt to organize groups of our employees
from time to time, and potential changes in labor laws could
make it easier for them to do so. If we are unable to continue to
maintain good relationships with our employees and prevent labor
organizations from organizing groups of our employees, our operating
costs could significantly increase and our operational flexibility could
be significantly reduced. Despite continual organizing attempts by labor
unions, other than the pilots of FedEx Express and drivers at four FedEx
Freight facilities, our U.S. employees have thus far chosen not to
unionize (we acquired GENCO in January 2015, which already had a
small number of employees that are members of unions)." (page 38)
 
"(2) Results for 2015 include a loss of $2.2 billion ($1.4 billion, net of tax, or $4.81 per diluted share) associated with our mark-to-market pension accounting, impairment and related charges of $276 million ($175 million, net of tax, or $0.61 per diluted share) resulting from the decision to permanently retire and adjust the retirement schedule of certain aircraft and related engines and a charge of $197 million ($133 million, net of tax, or $0.46 per diluted share) to increase the legal reserve associated with the settlement of a legal matter at FedEx Ground to the amount of the settlement." (page 9)
 
In an effort to bring some order to the placement of topics, the following is being copied from another thread. It seems to be more in line with this conversation.

This might be a tad off topic, but I noticed something when I was looking at the stats posted for CT. There was a point where we split off our sales force costs into the services opco, which would mean their salaries came out of that column. I know wages to revenue is a number you place a lot of emphasis on and was wondering if you took that into account. I would assume that the bulk of your comparables have the sales/marketing salaries figured into their overall wages column and we don't. Just a thought I had, don't want you to be changing your avatar or anything......

Be safe!
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Good question, aflifer. I just happen to have the answer.

The cost of sales/marketing is included in the annual report. It is listed under Intercompany charges. Rather than dig through all of the reports, lets use your (helpfull) link (page 34). We can see what happened to that number after sales was moved under FedEx Services.http://s1.q4cdn.com/714383399/files...ical/FedEx-Historical-Stat-Book-FY03-FY12.pdf

Here is the official explanation:

Page 35
"In Q1 FY10, approximately 2,700 FedEx Freight segment employees were transferred to FedEx Services and FedEx TechConnect. These employees represented the sales, information technology, marketing, pricing, customer service, claims and credit and collection functions of the FedEx Freight segment and were transferred to allow further centralization of these functions into the FedEx Services segment shared service organization. The costs of the functions are allocated to the FedEx Freight segment through intercompany charges"

Since sales is shared by all segments, each share in the expense/cost.

Page 25
"Net operating costs of the FedEx Services segment are allocated to the transportation segments it supports"

Sadly, my avatar must remain, for now. I do look forward to the day that it no longer makes a significant statement. Just so you know, you are only the 2nd person to share the opinion of not being a fan of the avatar. Not naming names, but you are in pretty good company.
 
Didn't necessarily say I wasnt a fan, just was trying to ascertain it's accuracy.......as should happen with all pertinent information.

So you added the intercompany costs line to our salary/wages line before dividing it by revenue when you came up with the % figures?

If not, I would think it would not be a true comparison against the other companies, who would have those costs already in the salaries.

Carry on.....
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Excellet point. In order to see if that makes any significant difference, we'll have to look at some numbers. Stay tuned, a 10min break doesn't provide enough time, with only a phone.

EDIT: I don't expect to see a visibility significant change, but we'll see...
 
New earnings out today..........6.5 OR.....

As I was looking at them and the info was handy, I took the 2nd quarter FXF stats and did the exercise.....

731 salaries + 112 intercompany costs ÷ 1547 revenue = 54.5%......

Don't know the exact numbers on you chart or their age, but it appears that figure shows a lot tighter "race" than previously represented.

EDIT: Granted, this most recent report encompasses the first results in which the pretty significant wage increase from October factored.

Be safe....
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Aflifer, I'll get back to you. A lot of numbers to consider. STAY TUNED
 
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