FedEx (FDX) Q2 2023 Earnings Call


FedEx Corporation (stock:FDX), a global transportation and logistics company, recently held a conference call to discuss its second quarter fiscal 2023 earnings. During the call, CEO Raj Subramaniam highlighted the company’s strong performance in the second quarter, despite the challenging operating environment. He also discussed the company’s ongoing efforts to accelerate cost actions in response to declining demand.

Executive Vice President and CFO Mike Lenz provided further details on the cost savings measures the company has implemented, including the reduction of eight international routes and 32 domestic routes, as well as the deferral of certain capital projects. Lenz also discussed the company’s strong liquidity position, with cash on hand totaling $4.6 billion at the end of the quarter.

Executive Vice President and Chief Marketing and Communications Officer Brie Carere discussed the performance of the company’s various segments, including FedEx Express, Ground, and Freight. She noted that revenue at FedEx Express was down 6% year over year due to volume and yield softness in Europe and Asia, while revenue at FedEx Ground was up 2% due to higher yield. Carere also highlighted the solid performance of FedEx Freight, with revenue up 8% and pricing discipline remaining strong across the less-than-truckload (LTL) industry.


  • Exceeding earnings target and cost action goals
  • Strong performance from FedEx Freight with revenue up 8%
  • Improved alignment between variable costs and lower revenue
  • Success in implementing cost reduction actions, including reducing flight frequencies, deferring and slowing the pace of projects, and executing an accelerated share repurchase transaction


  • Declining demand trends
  • Softness in Europe and Asia, leading to lower revenue at FedEx Express
  • Lower volumes at FedEx Ground
  • Operating environment beginning to moderate at FedEx Freight
  • Pressure on profitability at FedEx Express
  • Reduced flight frequencies and parked aircraft at FedEx
  • Lower demand environment leading to deferred and slowed pace of projects, and reduced capital spend forecast
  • Lower volume and yield expectations for the second half of the fiscal year, particularly in Asia.


  • Continued pressure on profitability due to lower volumes and yield in Express segment
  • Improved demand in Europe, but continued softness in Asia
  • Robust pipeline of sales, particularly in small and medium business and European segments
  • Continued yield pressure in Asia due to lower demand for priority services, shift towards deferred services
  • Prudent expectations for volume and yield in second half of fiscal year, but strong service value proposition and improved relative market position
  • $3.7 billion in discrete cost reductions identified, focusing on Express segment
  • Reduced capital expenditure forecast by $400 million to $5.9 billion
  • Strong liquidity, generating solid cash flows and executing $1.5 billion accelerated share repurchase
  • Maintaining commitment to reducing capital intensity and creating value for shareholders while reinvesting in company.
Author: M.P

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