FedEx Corporation (NYSE:FDX) Q2 2020 Earnings Conference Call - Final Transcript

Dec 17, 2019 • 05:30 pm ET

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FedEx Corporation (NYSE:FDX) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day everyone and welcome to the FedEx Corporation Second Quarter Fiscal Year 2020 Earnings Conference Call. Please note, 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.

Executive
Mickey Foster

Good afternoon and welcome to FedEx Corporation's second quarter earnings conference call.

The second quarter Form 10-Q, earnings release and stat book are on our website at fedex.com. 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.

[Technical Issues]

During Q&A session callers will be limited to one question In order for us -- 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 the press releases and filings with the SEC. Please refer to the Investor Relations portion of our website at fedex.com 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 COO; Alan Graf, Executive VP and CFO; 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 and Communications Officer; Don Colleran, President and CEO of FedEx Express; Henry Maier, President and CEO of FedEx Ground, who is on the phone; and John Smith, President and CEO of FedEx Freight.

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

Executive
Frederick W. Smith

Thank you, everyone, good afternoon and we appreciate your participating in our second quarter FY '20 call. As we've said before, we continue to be in a period of challenges and changes before addressing specific issues, let me thank over 490,000 FedEx team members around the world for delivering an outstanding peak season for our customers.

First, let me deal with the challenges. The quarter just ended is an anomaly because of the compressed shipping season before Christmas, necessitating a significant bow wave of expenses and volumes that will largely fall in our third fiscal quarter. In addition, this quarter has seen significant effects on the industrial economy due to continuing trade disputes, including reductions in international air freight and tepid at best B2B domestic parcel and freight shipping. Despite these issues, we remain highly confident in our strategies, which we