MAAT INDEX

CLAIM #24601 · FDX (FDX) · 2024Q2 earnings call · Dec 19, 2023 · due May 31, 2024

It's fairly evenly spread throughout the year, with slightly more heavily weighted in the second half as some of these initiatives take hold.

John Dietrich · CFO

PENDING
graded after results covering May 31, 2024 are reported

In context

capacity, now there is a fundamental restructuring that allows us to really improve our service on our core IP business, improve density across all our networks, and then essentially bring to a lower cost point and access some of our Ground networks that are really unparalleled. So, that's the idea with Tricolor. And so, let me turn it over to John for the other part. John Dietrich: Sure. Thanks, Raj. So, the majority of our adjusted operating expense decline in the first half was the result of lower volume-related expenses as we've continued to align our costs across the enterprise with reduced volumes. In addition, as you pointed out, we're making strong progress on our DRIVE and we are on track to achieve the $1.8 billion in structural savings in fiscal year 2024 that we talked about. It's fairly evenly spread throughout the year, with slightly more heavily weighted in the second half as some of these initiatives take hold. In Q2, Raj touched on some of the points in his presentation, of structural cost reductions, included approximately $115 million in the Air and International permanent savings category, $200 million in Surface savings and over $100 million in G&A. So, we're on track for that $1.8 billion as well. Operator: The next question will come from Jack Atkins with Stephens. Please go ahead. Jack Atkins: Okay. Great. Thank you for taking my question. I just wanted to go back to the Air Network redesign commentary for a moment. Just to be clear, was that contemplated within your initial DRIVE program? And then I guess, were there costs associated with that in the second quarter? And if so, could you break that out? And then finally, as you sort of think about when you're going to start seeing a bene

Verify independently

SEC filings for FDX · Claim quote is verbatim from the 2024Q2 earnings call.