FedEx Corporation (NYSE:FDX) Q1 2020 Earnings Conference Call Transcript

Sep 17, 2019 • 05:30 pm ET

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FedEx Corporation (NYSE:FDX) Q1 2020 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, everyone and welcome to the FedEx Corporation First Quarter Fiscal Year 2020 Earnings Conference. Today's call is being recorded.

At this time, I would like to turn the conference over to Mickey Foster, Vice President of Investor Relations for FedEx Corporation. Please go ahead.

Executive
Mickey Foster

Good afternoon, and welcome to FedEx Corporation's first quarter earnings conference call. The first quarter earnings release and stat book on our website at fedex.com. In addition, certain speakers may refer to charts we posted on the website this afternoon. 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 Q&A 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 fedex.com for 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 COO; Alan Graf, Executive Vice President and CFO; Mark Allen, Executive VP, General Counsel and Secretary; Brie Carere, Executive VP, Chief Marketing and Communications Officer and Rob Carter, Executive Vice President, FedEx Information Services and CIO, who is calling in remotely.

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

Executive
Frederick W. Smith

Thank you, Mickey. Good afternoon. Thanks, everyone, for participating in our first quarter FY '20 analyst call. Let me also thank the hundreds of thousands of FedEx teammates around the world who work every day to keep our Purple Promise, I will make every FedEx experience outstanding.

When our strategic management committee presented the FY '20 business plan to our Board of Directors last spring, we identified three significant challenges to increasing earnings this fiscal year consistent with our stated long term goals. One, beginning in the fall of 2018, it had become clear that global trade disputes were adversely affecting manufacturing in Europe and Asia, thereby slowing international shipping demand. Two, our TNT integration was facing its most important phase, leading to the integration of European Ground operations by the end of FY '20. And three, we plan to add capabilities to enhance our services toward the rapidly growing e-commerce market, which we expect to grow in the United States from 50 million to 100 million packages per day by 2026.