Weak demand has decreased, Fedex announced further cutting costs
- Author:sofreight.com
- Source:sofreight.com
- Release Date:2024-05-07
On December 20, Fedex (Fedex) announced the comprehensive performance of the second quarter of fiscal year as of November 30.
The performance report shows that the company's total revenue in the second quarter of the fiscal year of 2023 was US $ 22.8 billion, a year -on -year decrease of 3%; net profit was US $ 815 million, a year -on -year decrease of 37.3%.
Fedex President and CEO Raj Subramaniam said: "Federal express teams urgently need to make rapid progress in our ongoing transformation while dealing with weak demand environments."The quarterly income exceeds expectations. "
The company stated that it is taking priority to take a rapid reduction in costs so that the cost of fiscal 2023 is consistent with the business volume below expected.The company has determined that on the basis of the September plan, the cost of $ 1 billion is increased.Therefore, the company is currently expected that the cost of about 3.7 billion US dollars will be reduced in fiscal 2023.
Fedex stated in the performance report that the second quarter of fiscal year in fiscal year was constrained by the continuous weakness of demand, especially the Fedex Express department.
Weak demand has decreased, Fedex announced further cutting costs
Picture source: FEDEX
Due to the decline in global freight volume, the operating income of the Fedex Express department decreased by 64%year -on -year, and some of them were offset by 8%.The department implemented the cost reduction operation of the previous plan this quarter to reduce the impact of the decline in transport, including the changes in structural aviation networks and temporarily grounded aircraft.
The operating income of the Fedex Group department increased by 24%year -on -year, mainly due to the increase of 13%and cost reduction measures.These factors are partially offset that increased procurement and transportation costs, reduced parcels and higher other operating expenses.
The operating income of the Fedex Freight department increased by 32%year -on -year, which was promoted by 18%of the increase in capacity. At the same time, it was partially offset by higher wages and employee benefits and reduction of shipments.In addition, the department also temporarily allows some drivers to take a vacation until early March to match the demand for capacity and cost.
In late September this year, the company has stated that international air freight activities are obviously weak, especially air transport activities departing from Asia.At that time, the company announced the first fiscal season that was far lower than expected and stated that it would reduce costs.
The performance report shows that the company's total revenue in the second quarter of the fiscal year of 2023 was US $ 22.8 billion, a year -on -year decrease of 3%; net profit was US $ 815 million, a year -on -year decrease of 37.3%.
Fedex President and CEO Raj Subramaniam said: "Federal express teams urgently need to make rapid progress in our ongoing transformation while dealing with weak demand environments."The quarterly income exceeds expectations. "
The company stated that it is taking priority to take a rapid reduction in costs so that the cost of fiscal 2023 is consistent with the business volume below expected.The company has determined that on the basis of the September plan, the cost of $ 1 billion is increased.Therefore, the company is currently expected that the cost of about 3.7 billion US dollars will be reduced in fiscal 2023.
Fedex stated in the performance report that the second quarter of fiscal year in fiscal year was constrained by the continuous weakness of demand, especially the Fedex Express department.
Weak demand has decreased, Fedex announced further cutting costs
Picture source: FEDEX
Due to the decline in global freight volume, the operating income of the Fedex Express department decreased by 64%year -on -year, and some of them were offset by 8%.The department implemented the cost reduction operation of the previous plan this quarter to reduce the impact of the decline in transport, including the changes in structural aviation networks and temporarily grounded aircraft.
The operating income of the Fedex Group department increased by 24%year -on -year, mainly due to the increase of 13%and cost reduction measures.These factors are partially offset that increased procurement and transportation costs, reduced parcels and higher other operating expenses.
The operating income of the Fedex Freight department increased by 32%year -on -year, which was promoted by 18%of the increase in capacity. At the same time, it was partially offset by higher wages and employee benefits and reduction of shipments.In addition, the department also temporarily allows some drivers to take a vacation until early March to match the demand for capacity and cost.
In late September this year, the company has stated that international air freight activities are obviously weak, especially air transport activities departing from Asia.At that time, the company announced the first fiscal season that was far lower than expected and stated that it would reduce costs.