FedEx Half-Year Report 2024
Second quarter income and margin improved despite lower revenue, with consolidated operating income up 9% and adjusted operating income up 17%, primarily due to the execution of the company’s DRIVE program, and continued focus on service and revenue quality.
“FedEx has delivered an unprecedented two consecutive quarters of operating income growth and margin expansion even with lower revenue, clear evidence of the progress we are making on our transformation as we navigate an uncertain demand environment,” said Raj Subramaniam, FedEx Corp. president and chief executive officer. “We are moving with speed to make our network more efficient while delivering outstanding service to our customers through the peak season with the fastest Ground network in the industry. I am confident in our strategy as we make our global network more flexible, efficient, and intelligent.”
Highlights
- Revenue remained pressured, driven by volume declines at Express and Freight
- Ground and Freight delivered improved operational performance translating to strong operating income growth
- Adjusted consolidated margin growth reflects DRIVE initiatives taking hold and improved operational execution
- Delivering another strong Peak season while sustaining superior service levels
- DRIVE enabling improved profitability with two consecutivequarters of operating income growth and margin expansion against declining revenues
- Reaffirming FY24 adjusted EPS* outlook
