“At the segment level, we continue to expect adjusted margin improvement in FY 2024 at Ground.”

In context

“vious assumption of flat revenue growth. The reaffirmation of our earnings outlook despite the weaker demand environment, reflects the continued benefits of our transformation. We'll continue to closely monitor the global demand environment and other key factors, including inventory restocking, inflation, and e-commerce trends, which informs our view of overall expected performance. With regard to our third quarter expectations, as we've shared previously, we anticipate our typical seasonality, which implies a lighter quarter sequentially for earnings. We're also facing a higher comp at Ground given our exceptionally strong operating income performance during the third quarter of last year. At the enterprise level, we continue to expect year-over-year adjusted margin expansion in FY 2024. At the segment level, we continue to expect adjusted margin improvement in FY 2024 at Ground. We also continue to expect Freight margin to remain strong in FY 2024, but lower than FY 2023, given volume reductions and yield pressure. And we now anticipate a modest year-over-year adjusted margin contraction at Express. Turning to Slide 19, and consistent with previous quarters, we're providing a bridge to share how we're thinking about operating profit considerations embedded in our full year outlook. For illustrative purposes, we continue to use adjusted operating profit of $6.3 billion equivalent to the adjusted EPS midpoint of $17.75. As a reminder, and while our revenue performance will vary based on market trends, we are committed to delivering the $1.8 billion in structural cost savings from our DRIVE initiatives. Importantly, while this bridge remains the same as what we show”