The Results are In

Discussion in 'FedEx Discussions' started by vantexan, Jun 19, 2012.

  1. vantexan

    vantexan Well-Known Member

    FedEx announced quarterly and annual results for fiscal year 2012 this morning. Net profit for 2012 was $2.03 Billion, up from $1.45 Billion in 2011. The Express division's operating margin was 4.1%, down from 6.5% in 2011. Ground however improved to 20% from 18.4%.
  2. bbsam

    bbsam Moderator Staff Member

    Yea for us.
  3. STFXG

    STFXG Well-Known Member

    Looks like express guys need to pick up the pace... I know it's exhausting carrying all those envelopes, but come on! A little hustle wouldn't hurt.
  4. bbsam

    bbsam Moderator Staff Member

    When the cuts come, and they will, I'd be willing to hire Express drivers.
  5. thedownhillEXPRESS

    thedownhillEXPRESS Well-Known Member

    Good thing Fedex has the ground wage slaves to support the topped out Express guys making 30 bucks an hour, their cadillac pension plan, and healthcare.
    I'm sure they appreciate all your hard work, hahaha.....
  6. bbsam

    bbsam Moderator Staff Member

    Me? Work hard?! Are you kidding me?! Literally laughing all the way to the bank! LOL
  7. STFXG

    STFXG Well-Known Member

    It should at least be easy to get the background check cleared on this upcoming employment pool of former express drivers... Retraining them on how to work hard will be the difficult part.

    As soon as we take over the one rate box and ES we will have plenty of work for you guys.

    Anyone want to come in and run my pickups for me? Since you will all be part time soon anyways...
  8. Cactus

    Cactus Just telling it like it is

    Hire express drivers? You're a dreamer.
  9. Ricochet1a

    Ricochet1a New Member

  10. Ricochet1a

    Ricochet1a New Member

    Part of statement from Alan Graf:

    Looking at the FedEx Express segment, we expect to increase revenues in 2013 in our international services and improve yields across all Express services as we continue to focus on our yield management programs. We do anticipate a slight decline in U.S. domestic package revenue in 2013 due to lower volumes. We anticipate improved operating results due to productivity enhancements, including continued improvement in on-road productivity, air operations initiatives and ongoing realignment of our U.S. domestic air networks. Express is developing a detailed operating cost structure plan to further improve its operational efficiency and we plan to discuss this with you in the fall.

    Three guesses as to what measure will "improve yields" on existing Express product (that is, improve the profit margin)...

    Ground is yielding 20% now as opposed to just over 4% for Express... I can't believe that there are still doubters out there...

    So... domestic package revenues will decline due to lower volumes, BUT improved operating results (higher profit margins) are expected due to productivity enhancements and continued improvement in on-road productivity.

    Three guesses as to how "on-road productivity" will improve.... And productivity ISN'T defined as making an individual Courier more efficient, it is defined as reducing the cost to deliver a package - making the COMPANY more efficient.

    You'll only need to use one.
  11. Ricochet1a

    Ricochet1a New Member

    Excerpts from the Q&A session (Seeking Alpha transcript):

    Thomas R. Wadewitz - JP Morgan Chase & Co, Research Division
    Let's see. I wanted to ask you about the, let's see, the restructuring in a sense that you gave us some initial information on fleet reduction, it sounded like in that release that a lot of the aircraft that you were reducing or retiring were actually already parked. And I think one of the things we're trying to figure out is what's the magnitude of potential capacity takeout that you have. So I understand you're saving a lot of this for the fall, but I was wondering if you could give us kind of a directional comment on what -- how big is the opportunity to actually take out capacity in Domestic Express.

    R1a: Bringing up the 800 lb gorilla so soon...

    Frederick W. Smith
    I think we'll wait until the fall to talk about that because it's a comprehensive program and I'm not sure we could do it justice here on a telephone call.

    R1a: Volumes are spoken with just a mere sentence....

    Justin B. Yagerman - Deutsche Bank AG, Research Division
    When you guys think about your networks, as I see them right now, I mean, especially in Express, in the domestic market, how much of what's being moved in the Express market could really find a home in Ground? And I guess, as you've seen this accelerated Ground growth and continue to see strong margin improvement there, Fred, I think you talked to getting to a 20% goal last quarter. You're there now. Where does the bogey move to? So a 2-part question, how much from Express could move into Ground? And as you get that density, how much better can Ground margins get?

    R1a: Gee, either he or I are really adept at seeing a trend (maybe its both).... Folks, if the big institutional investors are asking these questions, they already know the answers, they are just looking at timing so they know when the value of the stock will shift.

    Frederick W. Smith

    ...We work with customers to put their products in the right network that's going to benefit them and, of course, benefit FedEx as well.

    R1a: I've been saying this for quite awhile now... Any doubters still exist????

  12. mitchel

    mitchel Member

    lol. even getting paid with minimums im making more than you...and getting health benefits. grunts can do the labor, for 8 dollars an offense of course.
  13. mitchel

    mitchel Member

    the above statement was directed to stfxg only...for now.
  14. vantexan

    vantexan Well-Known Member

    The word "comprehensive" alone says it's about more than retiring aircraft. We've got, depending on when the October meeting occurs, less than 4 months to find out the details. According to one article I read on Google News the restructuring will take place before the end of fiscal year 2013. So in less than a year I'll either be offered a buyout or will be looking to hang on as long as possible. Wish they'd hold off for about 3 years.
  15. vantexan

    vantexan Well-Known Member

    Just curious. Do you guys do a morning sort, unloading containers etc? Not your handlers, I mean the drivers. Work a reload at night? Do you handle international and haz, having to be familiar with rules and regs, getting annual recurrency training? Do you have to meet commit times throughout your day(which does require hustle)? Get back to the building by a set time to get freight on the truck? Have to deal with late freight due to weather, mechanical issues, etc? Started 90 mins late today, truck got there about 3 hrs later than normal due to a plane mechanical issue.

    Not to say you don't earn your money. But there's more to Express than delivering an envelope, and Ground's higher operating margin isn't due to the superiority of it's workforce. And when you think about it, your hard work is helping to pay for Express employees' benefits. So thank you for your service, keep up the good work, we accept your sacrifice on our behalf. :winnersmiley:
  16. Goldilocks

    Goldilocks Well-Known Member

    OUCH!! LOL
  17. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    The Ground drivers will have the last laugh.
  18. bbsam

    bbsam Moderator Staff Member

    well the contractors at least. Think about it. How does the company look the investor in the eye and say, "No, 4% yield is good enough. Pay no attention to the division making 20%."?
  19. STFXG

    STFXG Well-Known Member

    Haha funny thing is that you have no idea what my take home is... And if you did you wouldn't make that ridiculous statement.
  20. STFXG

    STFXG Well-Known Member

    Van, of course we deal with late dispatch and cutoff times to be back at the building. Yes we have hazmats and internationals. And yes to everything else... Other than the commit times and reloads.

    And are you really acting like loading a truck with envelopes is tasking? Btw hd does load their own trucks.

    you're welcome for the benefits. Just another reason to cut costs overthere. Thank you for the extra work when it comes. You won't hear me at ground whining about the work load.