FedEx Freight | FedEx's (FDX) CEO Frederick Smith on Q1 2017 Results - Earnings Call Transcript

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T. Michael Glenn
FedEx Freight revenue increased 4% in Q1 and 5.4% excluding the impact of fuel. Average daily shipments increased 8% year-over-year. The continued strength in shipment volume is driven by our outstanding sales efforts with small and medium customers and reflects the speed, reliability and choice of priority and economy service for our LTL customers. We also saw increased demand from larger customers during the quarter.
Revenue per LTL shipment declined 4% in Q1 due to lower fuel surcharge revenue and lower weight per shipment. Excluding the impact of the fuel surcharge revenue, revenue per shipment was down 1.7%.
Alan B. Graf, Jr.
Freight’s operating income increased 2% primarily due to higher volumes and a favorable comparison as a result of a charge for a facility closure. These benefits were mostly offset by lower LTL revenue per shipment which also drove a small decline in operating margin. Freight continues to face a difficult macro environment and is working hard to manage costs and increase yields.
 
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