FedEx Corporation (NYSE:FDX) Q4 2019 Earnings Conference Call - Final Transcript

Jun 25, 2019 • 05:30 pm ET


FedEx Corporation (NYSE:FDX) Q4 2019 Earnings Conference Call - Final Transcript


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Good day, everyone, and welcome to the FedEx Corporation Fourth Quarter Fiscal Year 2019 Earnings Conference Call. Today's call is being recorded. At this time, I will turn the call over to Mickey Foster, Vice President of Investor Relations for FedEx Corporation. Please go ahead.

Mickey Foster

Good afternoon, and welcome to FedEx Corporation's fourth quarter earnings conference call. The fourth quarter earnings release and stat book are on our website at This call is being streamed from our website where the replay will be available for about one year. Joining us on the call today are members of the media. During our question-and-answer session, callers will be limited to one question in order to allow us to accommodate all those who would like to participate. I want to remind all listeners that FedEx Corporation desires to take advantage of the Safe Harbor provisions of the Private Securities Litigation Reform Act.

Certain statements in this conference call, such as projections regarding future performance may be considered forward-looking statements within the meaning of the Act. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For additional information on these factors, please refer to our press releases and filings with the SEC. Please refer to the Investor Relations portion of our website at for a reconciliation of the non-GAAP financial measures discussed on this call to the most directly comparable GAAP measures.

Joining us on the call today are Fred Smith, Chairman; Raj Subramaniam, President and Chief Operating Officers ; Alan Graf, Executive Vice President and Chief Financial Officer ; Mark Allen, Executive Vice President, General Counsel and Secretary; Rob Carter, Executive Vice President, FedEx Information Services and CIO; Brie Carere, Executive Vice President, Chief Marketing & Communications Officer.

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

Frederick W. Smith

Thank you very much, Mickey. Welcome to all joining our quarterly call. Fiscal 2019 was a year of both challenge and change for FedEx. We faced weakening international revenue growth driven by the slowdown in global trade, the less favorable service mix of TNT Express business after the NotPetya cyberattack and continued rapid growth of e-commerce demand. We're very proud of our team members who are responding with positive actions and innovative solutions that will make FedEx even stronger and more successful in the future.

FedEx enters fiscal 2020 with a sharp focus on extending our lead as the premier global transport and logistics company and on making the necessary investments today to capture the significant market opportunities we see for the future. These steps include enhancing FedEx Ground capabilities, speed and efficiency, improving FedEx Express hub automation particularly in Memphis and Indianapolis, finishing the integration of TNT, modernizing our aircraft fleet and reducing unit cost and increasing productivity, especially for e-commerce deliveries. While these investments are long term in nature and their success cannot always be measured immediately, we are confident they will