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FedEx Freight | Q4 2023 Earnings

First the Bla, Bla, Bla part:

FedEx Freight operating results declined primarily due to decreased shipments and lower weight per shipment, partially offset by improved revenue quality. FedEx Freight remains focused on cost discipline, supported by a fourth round of furloughs to match staffing with demand and network optimization from the planned permanent closure of 29 facilities.
 
A couple excerpts from Earnings Call: https://www.fool.com/earnings/call-...0/fedex-fdx-q4-2023-earnings-call-transcript/

"U.S. freight pounds were down over 25% due to a change in strategy from a very large customer. International export volumes were about 4% lower year over year. FedEx Freight revenue was down 18% driven by an 18% decline in volumes with revenue per shipment flat. This decline was driven primarily by the slowdown in the market and high inventory levels."

"Freight margins will remain strong in FY '24 but lower than FY '23 given significant volume reductions and yield pressure."

"At Freight, the team is focused on maintaining pricing discipline while flexing costs to protect profitability. The Freight team was able to reduce operating expenses by over $330 million in the fourth quarter. This will be further supported by our announced plan to close and consolidate 29 locations, which will be completed by August. Consolidation will improve service levels while lowering our costs to serve."

"
Mike Lenz -- Executive Vice President, Chief Financial Officer

That was a lot. Certainly, like I said, we will see margin improvements at Express and at Ground in '24. Freight will -- definitely, we'll see some margin pressure there. So, I'm going to -- I'm going to leave it at that.

The Freight will mitigate. Like I said earlier, we'll see the largest margin pressure at Freight in Q1, and that will mitigate as we move -- move through the year. You know, similarly, I would expect the Express margin improvement to improve to a greater degree beyond Q1 as well as we move through the year. So, I'll -- I'll leave it at that."

"...as I mentioned earlier, Freight margins will be down for the year, and that will be most pronounced in Q1. "

So, it seems to me, the trend (squeeze) will continue... Stay tuned.
 
SwampRatt said:
A couple excerpts from Earnings Call: https://www.fool.com/earnings/call-...0/fedex-fdx-q4-2023-earnings-call-transcript/

"U.S. freight pounds were down over 25% due to a change in strategy from a very large customer. International export volumes were about 4% lower year over year. FedEx Freight revenue was down 18% driven by an 18% decline in volumes with revenue per shipment flat. This decline was driven primarily by the slowdown in the market and high inventory levels."

"Freight margins will remain strong in FY '24 but lower than FY '23 given significant volume reductions and yield pressure."

"At Freight, the team is focused on maintaining pricing discipline while flexing costs to protect profitability. The Freight team was able to reduce operating expenses by over $330 million in the fourth quarter. This will be further supported by our announced plan to close and consolidate 29 locations, which will be completed by August. Consolidation will improve service levels while lowering our costs to serve."

"
Mike Lenz -- Executive Vice President, Chief Financial Officer

That was a lot. Certainly, like I said, we will see margin improvements at Express and at Ground in '24. Freight will -- definitely, we'll see some margin pressure there. So, I'm going to -- I'm going to leave it at that.

The Freight will mitigate. Like I said earlier, we'll see the largest margin pressure at Freight in Q1, and that will mitigate as we move -- move through the year. You know, similarly, I would expect the Express margin improvement to improve to a greater degree beyond Q1 as well as we move through the year. So, I'll -- I'll leave it at that."

"...as I mentioned earlier, Freight margins will be down for the year, and that will be most pronounced in Q1. "

So, it seems to me, the trend (squeeze) will continue... Stay tuned.
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In other words.. this shall be one of the worst Winters so bundle up gents
 
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Streaker69 said:
You'll think I'm crazy, but I do miss FedEx. I've reached out to some companies and what they offer sucks in comparison.
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Yeah I agree. I tried myself and with the economy slowdown there’s nothing worth entertaining. By the time it picks back up maybe we will get all of our 30 lost runs back.. but my hub just gained about another 10 containers so I don’t see things going in the right direction
 
Road_Warrior1 said:
Yeah I agree. I tried myself and with the economy slowdown there’s nothing worth entertaining. By the time it picks back up maybe we will get all of our 30 lost runs back.. but my hub just gained about another 10 containers so I don’t see things going in the right direction
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I had one guy tell me I had to work nights and weekends. I had to have a tanker endorsement and no manual restriction. He was offering a whole 19.xx an hour. I told him I'd entertain it if he was willing to pay cash, but he said it had to be on the books for regulatory purposes. Needless to say, I passed.
 
SwampRatt said:
A couple excerpts from Earnings Call: https://www.fool.com/earnings/call-...0/fedex-fdx-q4-2023-earnings-call-transcript/

"U.S. freight pounds were down over 25% due to a change in strategy from a very large customer. International export volumes were about 4% lower year over year. FedEx Freight revenue was down 18% driven by an 18% decline in volumes with revenue per shipment flat. This decline was driven primarily by the slowdown in the market and high inventory levels."

"Freight margins will remain strong in FY '24 but lower than FY '23 given significant volume reductions and yield pressure."

"At Freight, the team is focused on maintaining pricing discipline while flexing costs to protect profitability. The Freight team was able to reduce operating expenses by over $330 million in the fourth quarter. This will be further supported by our announced plan to close and consolidate 29 locations, which will be completed by August. Consolidation will improve service levels while lowering our costs to serve."

"
Mike Lenz -- Executive Vice President, Chief Financial Officer

That was a lot. Certainly, like I said, we will see margin improvements at Express and at Ground in '24. Freight will -- definitely, we'll see some margin pressure there. So, I'm going to -- I'm going to leave it at that.

The Freight will mitigate. Like I said earlier, we'll see the largest margin pressure at Freight in Q1, and that will mitigate as we move -- move through the year. You know, similarly, I would expect the Express margin improvement to improve to a greater degree beyond Q1 as well as we move through the year. So, I'll -- I'll leave it at that."

"...as I mentioned earlier, Freight margins will be down for the year, and that will be most pronounced in Q1. "

So, it seems to me, the trend (squeeze) will continue... Stay tuned.
Click to expand...
I wonder what customer that was? I bet they “changed their strategy” when we kept leaving freight on their dock.
 
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