FedEx Corporation (NYSE:FDX) Q2 2018 Earnings Conference Call Transcript

Dec 19, 2017 • 05:00 pm ET


FedEx Corporation (NYSE:FDX) Q2 2018 Earnings Conference Call Transcript


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Good day, everyone, and welcome to the FedEx Corporation Second Quarter Fiscal Year 2018 Earnings Conference Call. (Operator Instructions)

At this time, I will turn the call over to Mickey Foster, VP of IR for FedEx Corporation. Please go ahead.

Mickey Foster

(technical difficulty) The second quarter earnings release, 31-page stat book and our earnings presentation slides are on our website at This call and the accompanying slides are being streamed from our website, where the replay and slides will be available for about one year. Written questions are welcome via e-mail. Our e-mail address is When you send your question, please include your full name and contact information. Preference will be given to inquiries of a long-term strategic nature.

(Forward-Looking Cautionary Statements)

Joining us on the call today are Fred Smith, Chairman; Dave Bronczek, President and COO; Alan Graf, EVP and CFO; Mark Allen, EVP, General Counsel and Secretary; Rob Carter, EVP, FedEx Information Services and CIO; Don Colleran, EVP, Chief Sales Officer, FedEx Corporation; Raj Subramaniam, EVP, Chief Marketing and Communications Officer, FedEx Corporation; David Cunningham, President and CEO of FedEx Express; Henry Maier, President and CEO of FedEx Ground; and Mike Ducker, President and CEO of FedEx Freight.

And now, Fred Smith will share his views on the quarter.

Frederick W. Smith

Thank you, Mickey. Good afternoon, and welcome to our webcast and conference call to discuss second quarter earnings. Strategic execution by the FedEx team and a stronger global economy drove improved financial results, and we believe we are well positioned for profitable long-term growth. Alan will provide further insight and our outlook.

FedEx is on track for another record holiday shipping season, and we're pleased to say the outstanding service around the world and across our portfolio during the second quarter has continued into December. We plan year-round to meet the intense challenges of the peak season as average daily volumes can more than double with heavy demand for residential e-commerce deliveries.

Most important, let me thank the more than 400,000 FedEx team members around the world for their outstanding efforts to keep our Purple Promise, which is simply stated, I will make every FedEx experience outstanding.

It's become increasingly clear to all of us that trust and reliability matter to customers when they choose who will be delivering packages to their doors. Size, reach, speed and reliability of our networks and the strength of the FedEx brand have great value around the world. Raj will have more to say about peak and macroeconomic trends.

We're very proud of the progress the FedEx team has made in recovering from the effects of the cyberattack at TNT. Let me express our appreciation to the thousands of FedEx professionals who worked around the clock and tirelessly to mitigate this unprecedented event. Dave will update you in his discussion of overall global operations. We expect yield and volume growth at all of our transportation segments will support revenue and earnings growth in the second half of fiscal 2018.

Our plans remain on