Freightmaster1
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Fedex Corp (FDX) Q4 2021 Earnings Call Transcript | The Motley Fool
FDX earnings call for the period ending May 31, 2021.
www.fool.com
FedEx Freight | Fedex Corp (FDX) Q4 2021 Earnings Call Transcript
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Not sure why the banana is dancing? I think it is outrageous that TDU hasn't marshalled it's resources to force AOC and Bernie to pass legislation to make FEDEX ground franchisees employees! Ditto Amazon's contractors. You have your army of PENSION WARRIORS use them for something useful.Fedex Corp (FDX) Q4 2021 Earnings Call Transcript | The Motley Fool
FDX earnings call for the period ending May 31, 2021.
So you want government to decide how people should work instead of letting them be able to choose for themselves? Wow!
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Any other company in America would not be allowed to have that business model. FEDEX has spread 100's of millions of dollars to politicians and lawyers to prevent FEDEX GROUND contractors from becoming employees. And FEDEX EXPRESS employees from becoming unionized. I've often said, Triplex isn't a friend of labor.
You accusing someone of not being a friend of labor, has got to be the single most hilarious quote of the year....LMAO..... You were joking, right?
. Although I do agree with the first part of your quote concerning FedexI'm a friend of freedom, including the freedom of people to choose how they work. Any group can choose to be unionized if they want. That's freedom.
PS - Where have you "often said" I'm not a friend of labor? My memory isn't as good as it was. Or is it that you just exaggerate more now?
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That makes you qualified to be president, since you are a dim.
And you're just plain, old, ordinary ignorant, nothing special, just ordinary.
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Then that would qualify you to be a Moron, since you are.........a Moron!!!
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My true personality must not show through on an online forum. I'm usually described as a troublemaking independent opinionated obnoxious jerk. The kind of person organized labor needs. I bet you were a good Teamster who always had their finger in the air, judging the direction of the wind.
You're close actually. I hold my finger in the air to determine the direction from which the hot air is blowing. And guess who I see when I turn to look into that direction?
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RPS had that business model!
Tiredtrucker44
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Amazon has the same business model as FedEx Ground
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The law is very clear. In order to be a FedEx employee, FedEx must control your payrate and your schedule. FedEx must control when and where you work and how much you are paid. The people driving the FedEx Ground delivery trucks are free to organize and negotiate a labor agreement with their employer. The drivers are not contract employees. They are employees of companies that have a contract with FedEx. My condo association has a contract with Exclusive Lawncare. The guys cutting our lawns are not condo association contract employees. They work for Exclusive Lawncare.
nice
Excerpt :
Rajesh Subramaniam -- President and Chief Operating Officer
"...we are facing challenges with labor availability, which have contributed to recent service levels that do not meet our own high expectations of the quality we expect to deliver to our customers. The inability to hire team members particularly package handlers has driven wage rates higher and creates inefficiency in our networks as we use over time to cover open shifts and route volume around known constraints, just as a few examples. As such, we're taking bold actions across the business to address service issues and prepare for sustained volume increases, including continued investments in people, capacity and technology to optimize our networks."
Rajesh Subramaniam -- President and Chief Operating Officer
"...we are facing challenges with labor availability, which have contributed to recent service levels that do not meet our own high expectations of the quality we expect to deliver to our customers. The inability to hire team members particularly package handlers has driven wage rates higher and creates inefficiency in our networks as we use over time to cover open shifts and route volume around known constraints, just as a few examples. As such, we're taking bold actions across the business to address service issues and prepare for sustained volume increases, including continued investments in people, capacity and technology to optimize our networks."
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That is called flexibility. Something union carriers don't have.
Brie Carere -- Executive Vice President, Chief Marketing and Communications Officer
"In fiscal year '21 Q4, we increased FedEx Ground economy yield by 28% and overall US domestic residential yields by 16% year-over-year. It is important to note, when reviewing composite US domestic yields that weights and zone will decrease, putting pressure on yields as we grow in e-commerce. We are managing total network profitability. Short zone e-commerce and our FedEx Ground economies service will enable us to sweat our assets and maximize sortation capacity."
"Within our pricing strategy, we continue to prioritize capacity for commercial and small and medium customer segments. To support the network of ongoing capacity constraints, we have increased our peak surcharges as of June 21 and we'll monitor and adjust our strategy as capacity and demand warrants. We will continue to confidently renegotiate our large customer segment contracts to increase profitability. This means balancing product, day of week and lane mix at the customer level, while ensuring appropriate surcharges and rate increases cover rising labor costs."
"In fiscal year '21 Q4, we increased FedEx Ground economy yield by 28% and overall US domestic residential yields by 16% year-over-year. It is important to note, when reviewing composite US domestic yields that weights and zone will decrease, putting pressure on yields as we grow in e-commerce. We are managing total network profitability. Short zone e-commerce and our FedEx Ground economies service will enable us to sweat our assets and maximize sortation capacity."
"Within our pricing strategy, we continue to prioritize capacity for commercial and small and medium customer segments. To support the network of ongoing capacity constraints, we have increased our peak surcharges as of June 21 and we'll monitor and adjust our strategy as capacity and demand warrants. We will continue to confidently renegotiate our large customer segment contracts to increase profitability. This means balancing product, day of week and lane mix at the customer level, while ensuring appropriate surcharges and rate increases cover rising labor costs."
Mike Lenz -- Executive Vice President and Chief Financial Officer:
"Freight grew out this quarter with 38% revenue growth and their highest quarterly operating margin ever at 16.1%. They also topped $1 billion in operating income for the full year for the first time."
" The FY '22 adjusted EPS range we provided corresponds 13% to 18% year-over-year growth on top of record FY '21 earnings. I'd make the following highlights behind that. We expect margins in all our transportation segments on an adjusted basis to exceed FY '21 levels driven by several key areas."
"We expect continued improvement at FedEx Freight through our ongoing revenue quality and profitable growth strategies. Our outlook includes substantial funding of our incentive compensation program for our team members. That said variable compensation expense is not expected to be a headwind for fiscal '22. While we have clear growth opportunities, the widespread labor shortages impacting many companies and industries across the US is also impacting us through higher wage rates and lower productivity, particularly in the first quarter and this is reflected in our overall outlook for the year."
"Next, our plan to restart our stock buyback program during the first quarter, which we can do without having to increase leverage and our focus primarily to offset dilutive effects of our equity compensation program. And our plan to voluntarily contribute $500 million in FY '22 to our pension plan, which was funded at 95% on May 31."
"Freight grew out this quarter with 38% revenue growth and their highest quarterly operating margin ever at 16.1%. They also topped $1 billion in operating income for the full year for the first time."
" The FY '22 adjusted EPS range we provided corresponds 13% to 18% year-over-year growth on top of record FY '21 earnings. I'd make the following highlights behind that. We expect margins in all our transportation segments on an adjusted basis to exceed FY '21 levels driven by several key areas."
"We expect continued improvement at FedEx Freight through our ongoing revenue quality and profitable growth strategies. Our outlook includes substantial funding of our incentive compensation program for our team members. That said variable compensation expense is not expected to be a headwind for fiscal '22. While we have clear growth opportunities, the widespread labor shortages impacting many companies and industries across the US is also impacting us through higher wage rates and lower productivity, particularly in the first quarter and this is reflected in our overall outlook for the year."
"Next, our plan to restart our stock buyback program during the first quarter, which we can do without having to increase leverage and our focus primarily to offset dilutive effects of our equity compensation program. And our plan to voluntarily contribute $500 million in FY '22 to our pension plan, which was funded at 95% on May 31."