From the earnings call
Alan Graf:
"International Priority freight pounds were flat and International Economy freight pounds surged 16%. In the U.S., overnight package volumes were up 3%, while deferred package volumes increased 15%. These volume trends accelerated during the quarter and Express operating profit was significantly below our business plan in the first half of fiscal year '19. To address the shifts in our business conditions, we are implementing and accelerating several cost-reduction initiatives, both in the U.S. and internationally. These initiatives include a voluntary employee buyout program, capacity reductions primarily in international airline network, limited hiring and staff functions and reductions in discretionary spending."
(The above applies to Express.)
Ground:
"The Ground segment operating income surged 18% to $586 million on an 8% volume increase and a 6% yield increase.
Despite the upfront costs associated with opening two major hubs and inflationary cost pressures, Ground's operating margin increased 40 basis points to 11.4%. Ground's profitability will increase as investment in our market-leading automation, coupled with large productivity initiatives, come online. We will provide more detail on our Ground strategic projects in the coming months."
Freight:
"Freight segment grew operating income 37% with shipments increasing 8% and yields up 6%. Operating margin was 7.7%, up 120 basis points. Cost-reduction initiatives, combined with continued profit improvements at Ground and Freight are expected to increase the long-term growth in corporate earnings and margins, improve cash flows and increase our competitiveness."
Stock:
"As I mentioned, we are reviewing all aspects of our financial plans, including whether we will repurchase additional shares this year. As a reminder, we spent $11.6 billion, purchasing almost 76 million shares over the last 5.5 years, resulting in the nearly 18% reduction in outstanding shares"