CLAIM #24568 · FDX (FDX) · 2024Q1 earnings call · Sep 20, 2023 · due May 31, 2024
“With regard to Ground, look, as I mentioned just a short while ago, we think the improvement is going to continue on a year-over-year basis in terms of ring-fencing anything.”
John Dietrich · CFO
In context
“-fence there that you would consider kind of onetime due to the volume diversion opportunity? I'm just looking at that plus 4 in August and wondering is there any cadence shift throughout the month and some of that volume went back. And I guess just clarifying on Express, I think, it sounds like there was a $150 million step-up sequentially in Express related to the incentive comp. Can you just confirm that? I can get it from the Q, but I was just wondering that maybe that may explain why the decremental sequentially were so high. And I guess that moderates as we go on because that's now in the cost structure. If you could just clarify that. John Dietrich: I think what I said was $100 million incremental to our last report, from the last time we reported on it. So that's that piece of it. With regard to Ground, look, as I mentioned just a short while ago, we think the improvement is going to continue on a year-over-year basis in terms of ring-fencing anything, as Brie talked about, we're going to be looking to keep that incremental business and, in fact, have terms that require we are very discerning on the customers we took on and have agreements in place with those customers. And on the Freight side as well with Yellow that capacity at least for now has come out of the market and Freight is going to be taking advantage of those additional volumes. But I mean just getting back to Ground for a moment. We're expecting continued year-over-year improvement and no ring-fence to identify. With regard to Express, we're going to be focusing on the margin expansion. I'm not exactly sure on your question from perspective otherwise. But we're going to be focused on that margin expansion and continuing to grow and leverage the opportunities we have at Exp”
Verify independently
SEC filings for FDX ↗ · Claim quote is verbatim from the 2024Q1 earnings call.