FedEx Corporation (NYSE: FDX), originally known as FDX Corporation, is a logistics services company, based in the United States with headquarters in Memphis, Tennessee. The name "FedEx" is a syllabic abbreviation of the name of the company's original air division, Federal Express, which was used from 1973 until 2000.
FedEx Corporation (FedEx), incorporated on October 2, 1997, is a holding company. The Company provides a portfolio of transportation, e-commerce and business services under the respected FedEx brand. The Company operates in four segments: FedEx Express, FedEx Ground, FedEx Freight and FedEx Services. Federal Express Corporation (FedEx Express) is an express transportation company, offering time-certain delivery within one to three business days and serving markets. FedEx Ground Package System, Inc. (FedEx Ground) is a provider of small-package ground delivery service. FedEx Ground provides day-certain service to every business address in the United States and Canada. FedEx Freight Corporation is a provider of less-than-truckload (LTL) freight services through its FedEx Freight business (fast-transit LTL freight services) and its FedEx National LTL business (economical LTL freight services). FedEx Corporate Services, Inc. (FedEx Services) provides its other companies with sales, marketing and information technology support, as well as customer service support through FedEx Customer Information Services, Inc.
FedEx Express
FedEx Express offers time-certain delivery within one to three business days, serving markets through door-to-door, customs-cleared service, with a money-back guarantee. FedEx Express has approximately 59,000 drop-off locations (including FedEx Office centers), 664 aircraft and approximately 49,000 vehicles and trailers in its integrated global network. FedEx Express offers a range of shipping services for delivery of packages and freight. Overnight and deferred package services are backed by money-back guarantees and extend to virtually the entire United States population. FedEx Express offers three United States package delivery services: FedEx First Overnight, FedEx Priority Overnight and FedEx Standard Overnight. FedEx SameDay service is available for urgent shipments up to 70 pounds to virtually any Unites States destination. International express and deferred package delivery with a money-back guarantee is available to more than 220 countries and territories, with a variety of time-definite services to meet distinct customer needs. FedEx Express also offers comprehensive international express and deferred freight services, backed by a money-back guarantee, real-time tracking and advanced customs clearance.
FedEx Trade Networks provides international trade services, specializing in customs brokerage and global ocean and air freight forwarding. FedEx Trade Networks provides customs clearance services for FedEx Express at its major hub facilities. Value-added services include Global Trade Data, an information tool that allows customers to track and manage imports. FedEx Trade Networks provides international trade advisory services, including assistance with the Customs-Trade Partnership Against Terrorism (C-TPAT) program, and through its WorldTariff subsidiary, FedEx Trade Networks publishes customs duty and tax information for over 100 customs areas worldwide. FedEx Trade Networks has 120 offices in 95 service locations throughout North America and in Asia, Europe, the Middle East and Latin America.
FedEx Ground
FedEx Ground serves customers in the North American small-package market, focusing on business and residential delivery of packages weighing up to 150 pounds. Ground service is provided to 100% of the continental United States population and overnight service of up to 400 miles to nearly 100% of the continental United States population. Service is also provided to nearly 100% of the Canadian population. In addition, FedEx Ground offers service to Alaska and Hawaii through a ground and air network operation coordinated with other transportation providers. The Company offers FedEx Home Delivery, which reaches nearly 100% of United States residences. FedEx Ground operates a multiple hub-and-spoke sorting and distribution system consisting of 520 facilities, including 32 hubs, in the United States and Canada.
FedEx SmartPost (a subsidiary of FedEx Ground) is a small-parcel consolidator, which specializes in the consolidation and delivery of high volumes of low-weight, less time-sensitive business-to-consumer packages, using the United States Postal Service for final delivery to residences. The Company picks up shipments from customers (including e-tailers and catalog companies), provides sorting and linehaul services and then delivers the packages to a United States Postal Service facility for final delivery by a postal carrier. Through its network of 25 distribution hubs and approximately 4,500 employees, FedEx SmartPost provides delivery Monday through Saturday to all residential addresses in the United States, including post office boxes and military destinations.
FedEx Freight
FedEx Freight Corporation provides a range of LTL freight services through its FedEx Freight (fast-transit LTL freight services), FedEx National LTL (economical LTL freight services) and FedEx Freight Canada businesses. FedEx Freight provides service to virtually all United States ZIP Codes (including Alaska and Hawaii). FedEx Freight’s services are supported by a no-fee money-back guarantee on eligible shipments. Internationally, FedEx Freight Canada offers freight delivery service throughout Canada, and FedEx Freight serves Mexico, Puerto Rico, Central and South America, the Caribbean, Europe and Asia through alliances and purchased transportation. FedEx National LTL provides economical service options. As of May 31, 2010, FedEx Freight Corporation was operating approximately 60,000 vehicles and trailers from a network of 492 service centers. FedEx Custom Critical provides a range of expedited, time-specific freight-shipping services throughout the United States, Canada and Mexico.
FedEx Services
FedEx Services provides its other companies with sales, marketing, information technology and customer service support. Through FedEx Services and its subsidiary FedEx Customer Information Services, Inc., the Company provides a convenient single point of access for many customer support functions, to sell the entire portfolio of transportation services. FedEx Mobile is a suite of services available on most Web-enabled mobile devices, such as the BlackBerry, and includes enhanced support for Apple products, such as the iPhone, iPod Touch and iPad. FedEx Mobile allows customers to track the status of packages, create shipping labels, get account-specific rate quotes and access drop-off location data for FedEx shipments.
FedEx Office’s global network of digitally-connected locations offers access to copying and digital printing through retail and Web-based platforms, signs and graphics, professional finishing, computer rentals, and the range of FedEx day-definite ground shipping and time-definite global express shipping services. FedEx Office offers a range of FedEx Express and FedEx Ground services at virtually all United States locations. In addition, FedEx Office offers packing services at virtually all United States Office and Print Centers, and packing supplies and boxes are included in FedEx Office’s retail product assortment.
The Company competes with United Parcel Service, Inc., DHL, TNT, Con-Way Freight, YRC Regional Transportation and UPS Freight.
Internally, FedEx began company-wide cost-containment policies to reduce waste and overhead, as well as gain increased efficiency in meeting the needs of its customers. The company's Station Review Process allowed the most effective local policies to be shared by the entire FedEx station network. Despite cost-cutting measures, however, employee-related expenses rose when FedEx became mired in over two years of contract negotiations with the Air Line Pilots Association (ALPA). Despite what Smith had considered generous enough salaries and benefit packages to keep the threat of unionization at bay, heated labor negotiations ultimately resulted in the 1996 unionization of FedEx's 3,100 pilots. However, only a few weeks after the pro-union vote, an organization of company pilots was petitioning the National Labor Mediation Board to call a second vote to oust the union, leading analysts to doubt ALPA's continued influence over FedEx budgetary policy. On the plus side, the expiration of a federal cargo tax during the federal budget impasse of January 1996 would provide FedEx with a fiscal boost as the company maintained prices despite a temporary hiatus in federally directed excise payments.
In the early 1990s FedEx's foreign operations were troubled, and their losses dragged down company earnings. While overall sales rose from $5.2 billion in 1989 to $7.69 billion in fiscal 1991 operating income fell from $424 million to $279 million over the same period, much of it resulting from the costly development of overseas markets. Industry analysts were divided over whether or how soon the company would be able to make its foreign operations profitable. Some analysts questioned how long FedEx could accept international losses while carrying $2.15 billion in long-term debt.
Smith countered such concerns by arguing that when the company's international volume increased, international service would become profitable. In an effort to boost that volume, FedEx traded in its 727s for larger-capacity Airbus Industrie jet aircraft for their three daily European-destination flights, filling extra cargo space with non-express packages to increase per-flight profitability. In 1994 the company became the first international express cargo carrier to receive system-wide ISO 9001 certification; by mid-decade international service accounted for 12 percent of the company's business: FedEx linked over 200 countries and territories worldwide, representing the bulk of global economic transactions. By 1996 the company could boast sales of $10.27 billion against operating income of $624 million.
Further Expansion and a Look to the Future
Aggressive international route expansion included creating divisions in several hemispheres. A Latin America and Caribbean division was created in 1995 to integrate services within the second-fastest world's economic growth area. And in September of that year the company introduced FedEx AsiaOne: a next-business-day service between Asian countries and the United States. Via a hub established at Subic Bay, Philippines, FedEx planned to duplicate its successful hub-and-spoke delivery service within 11 of that continent's commercial and financial centers. Unfortunately, the company's plans were confounded by the Japanese government, which limited FedEx's flying rights from Japan to other Asian countries in mid-1996, after a series of talks between the U.S. and Japan failed to reach a compromise. While the U.S. government contemplated appropriate sanctions against the Japanese government for its failure to honor existing flight privileges with FedEx, Japan viewed the company's growing success in Asia as a threat to its own overseas cargo industry. Despite difficulties with Japan, the extension of its world-renowned service to the Pacific Rim area placed FedEx in a strategic position within one of the fastest-growing economic centers in the world--particularly with regard to China, where the company was the sole U.S.-based cargo service then authorized to do business.
Through 2015 the international express air cargo market was predicted to grow nearly 18 percent per year; FedEx was expected to reap a major portion of that growth as it saw its foreign operations increasing by as much as 25 percent per year. By retaining the confidence of its customers through its logistical capabilities, expanding the carrying capacity of its fleet of over 557 fuel-efficient aircraft and 37,000 vehicles, and a continued dedication to providing cost-effective express service, "FedEx it" continued to be the generic way to request express shipment.
Principal Subsidiaries: Federal Express Aviation Services; Federal Express International; Flying Tiger Line Inc.; Tiger Inter Modal Inc.; Tiger Trucking Subsidiary Inc.; Warren Transport Inc.
OVERALL
Beta: 1.16
Market Cap (Mil.): $29,242.55
Shares Outstanding (Mil.): 315.66
Annual Dividend: 0.48
Yield (%): 0.52
FINANCIALS
FDX.N Industry Sector
P/E (TTM): 22.36 5.50 16.70
EPS (TTM): 1,166.07 -- --
ROI: 6.23 1.19 3.22
ROE: 8.95 1.65 5.81
Statistics:
Public Company
Incorporated: 1971 as Federal Express Corporation
Employees: 11,000
Sales: $10.27 billion
Stock Exchanges: New York Toronto Boston Midwest Pacific
SICs: 4513 Air Courier Services; 4212 Local Trucking Without Storage
Name Age Since Current Position
Smith, Frederick 66 1998 Chairman of the Board, President, Chief Executive Officer
Graf, Alan 58 1998 Chief Financial Officer, Executive Vice President
Bronczek, David 56 2000 President and Chief Executive Officer - FedEx Express
Rebholz, David 57 2007 President and Chief Executive Officer - FedEx Ground
Logue, William 52 2010 President and Chief Executive Officer of FedEx Freight Corp
Carter, Robert 51 2007 Chief Information Officer; Executive Vice President - FedEx Information Services
Richards, Christine 55 2005 Executive Vice President, General Counsel, Secretary
Glenn, T. Michael 55 1998 Executive Vice President - Market Development and Corporate Communications
Walsh, Paul 55 1996 Director
Smith, Joshua 70 1989 Director
Hyde, Joseph 68 1977 Director
Barksdale, James 68 1999 Director
Jackson, Shirley 64 1999 Director
Edwardson, John 61 2003 Director
Loranger, Steven 59 2006 Director
Loveman, Gary 50 2007 Director
Schwab, Susan 56 2009 Director
Steiner, David 50 2009 Director
Address:
2005 Corporate Avenue
Memphis, Tennessee 38132
U.S.A.
FedEx Corporation (FedEx), incorporated on October 2, 1997, is a holding company. The Company provides a portfolio of transportation, e-commerce and business services under the respected FedEx brand. The Company operates in four segments: FedEx Express, FedEx Ground, FedEx Freight and FedEx Services. Federal Express Corporation (FedEx Express) is an express transportation company, offering time-certain delivery within one to three business days and serving markets. FedEx Ground Package System, Inc. (FedEx Ground) is a provider of small-package ground delivery service. FedEx Ground provides day-certain service to every business address in the United States and Canada. FedEx Freight Corporation is a provider of less-than-truckload (LTL) freight services through its FedEx Freight business (fast-transit LTL freight services) and its FedEx National LTL business (economical LTL freight services). FedEx Corporate Services, Inc. (FedEx Services) provides its other companies with sales, marketing and information technology support, as well as customer service support through FedEx Customer Information Services, Inc.
FedEx Express
FedEx Express offers time-certain delivery within one to three business days, serving markets through door-to-door, customs-cleared service, with a money-back guarantee. FedEx Express has approximately 59,000 drop-off locations (including FedEx Office centers), 664 aircraft and approximately 49,000 vehicles and trailers in its integrated global network. FedEx Express offers a range of shipping services for delivery of packages and freight. Overnight and deferred package services are backed by money-back guarantees and extend to virtually the entire United States population. FedEx Express offers three United States package delivery services: FedEx First Overnight, FedEx Priority Overnight and FedEx Standard Overnight. FedEx SameDay service is available for urgent shipments up to 70 pounds to virtually any Unites States destination. International express and deferred package delivery with a money-back guarantee is available to more than 220 countries and territories, with a variety of time-definite services to meet distinct customer needs. FedEx Express also offers comprehensive international express and deferred freight services, backed by a money-back guarantee, real-time tracking and advanced customs clearance.
FedEx Trade Networks provides international trade services, specializing in customs brokerage and global ocean and air freight forwarding. FedEx Trade Networks provides customs clearance services for FedEx Express at its major hub facilities. Value-added services include Global Trade Data, an information tool that allows customers to track and manage imports. FedEx Trade Networks provides international trade advisory services, including assistance with the Customs-Trade Partnership Against Terrorism (C-TPAT) program, and through its WorldTariff subsidiary, FedEx Trade Networks publishes customs duty and tax information for over 100 customs areas worldwide. FedEx Trade Networks has 120 offices in 95 service locations throughout North America and in Asia, Europe, the Middle East and Latin America.
FedEx Ground
FedEx Ground serves customers in the North American small-package market, focusing on business and residential delivery of packages weighing up to 150 pounds. Ground service is provided to 100% of the continental United States population and overnight service of up to 400 miles to nearly 100% of the continental United States population. Service is also provided to nearly 100% of the Canadian population. In addition, FedEx Ground offers service to Alaska and Hawaii through a ground and air network operation coordinated with other transportation providers. The Company offers FedEx Home Delivery, which reaches nearly 100% of United States residences. FedEx Ground operates a multiple hub-and-spoke sorting and distribution system consisting of 520 facilities, including 32 hubs, in the United States and Canada.
FedEx SmartPost (a subsidiary of FedEx Ground) is a small-parcel consolidator, which specializes in the consolidation and delivery of high volumes of low-weight, less time-sensitive business-to-consumer packages, using the United States Postal Service for final delivery to residences. The Company picks up shipments from customers (including e-tailers and catalog companies), provides sorting and linehaul services and then delivers the packages to a United States Postal Service facility for final delivery by a postal carrier. Through its network of 25 distribution hubs and approximately 4,500 employees, FedEx SmartPost provides delivery Monday through Saturday to all residential addresses in the United States, including post office boxes and military destinations.
FedEx Freight
FedEx Freight Corporation provides a range of LTL freight services through its FedEx Freight (fast-transit LTL freight services), FedEx National LTL (economical LTL freight services) and FedEx Freight Canada businesses. FedEx Freight provides service to virtually all United States ZIP Codes (including Alaska and Hawaii). FedEx Freight’s services are supported by a no-fee money-back guarantee on eligible shipments. Internationally, FedEx Freight Canada offers freight delivery service throughout Canada, and FedEx Freight serves Mexico, Puerto Rico, Central and South America, the Caribbean, Europe and Asia through alliances and purchased transportation. FedEx National LTL provides economical service options. As of May 31, 2010, FedEx Freight Corporation was operating approximately 60,000 vehicles and trailers from a network of 492 service centers. FedEx Custom Critical provides a range of expedited, time-specific freight-shipping services throughout the United States, Canada and Mexico.
FedEx Services
FedEx Services provides its other companies with sales, marketing, information technology and customer service support. Through FedEx Services and its subsidiary FedEx Customer Information Services, Inc., the Company provides a convenient single point of access for many customer support functions, to sell the entire portfolio of transportation services. FedEx Mobile is a suite of services available on most Web-enabled mobile devices, such as the BlackBerry, and includes enhanced support for Apple products, such as the iPhone, iPod Touch and iPad. FedEx Mobile allows customers to track the status of packages, create shipping labels, get account-specific rate quotes and access drop-off location data for FedEx shipments.
FedEx Office’s global network of digitally-connected locations offers access to copying and digital printing through retail and Web-based platforms, signs and graphics, professional finishing, computer rentals, and the range of FedEx day-definite ground shipping and time-definite global express shipping services. FedEx Office offers a range of FedEx Express and FedEx Ground services at virtually all United States locations. In addition, FedEx Office offers packing services at virtually all United States Office and Print Centers, and packing supplies and boxes are included in FedEx Office’s retail product assortment.
The Company competes with United Parcel Service, Inc., DHL, TNT, Con-Way Freight, YRC Regional Transportation and UPS Freight.
Internally, FedEx began company-wide cost-containment policies to reduce waste and overhead, as well as gain increased efficiency in meeting the needs of its customers. The company's Station Review Process allowed the most effective local policies to be shared by the entire FedEx station network. Despite cost-cutting measures, however, employee-related expenses rose when FedEx became mired in over two years of contract negotiations with the Air Line Pilots Association (ALPA). Despite what Smith had considered generous enough salaries and benefit packages to keep the threat of unionization at bay, heated labor negotiations ultimately resulted in the 1996 unionization of FedEx's 3,100 pilots. However, only a few weeks after the pro-union vote, an organization of company pilots was petitioning the National Labor Mediation Board to call a second vote to oust the union, leading analysts to doubt ALPA's continued influence over FedEx budgetary policy. On the plus side, the expiration of a federal cargo tax during the federal budget impasse of January 1996 would provide FedEx with a fiscal boost as the company maintained prices despite a temporary hiatus in federally directed excise payments.
In the early 1990s FedEx's foreign operations were troubled, and their losses dragged down company earnings. While overall sales rose from $5.2 billion in 1989 to $7.69 billion in fiscal 1991 operating income fell from $424 million to $279 million over the same period, much of it resulting from the costly development of overseas markets. Industry analysts were divided over whether or how soon the company would be able to make its foreign operations profitable. Some analysts questioned how long FedEx could accept international losses while carrying $2.15 billion in long-term debt.
Smith countered such concerns by arguing that when the company's international volume increased, international service would become profitable. In an effort to boost that volume, FedEx traded in its 727s for larger-capacity Airbus Industrie jet aircraft for their three daily European-destination flights, filling extra cargo space with non-express packages to increase per-flight profitability. In 1994 the company became the first international express cargo carrier to receive system-wide ISO 9001 certification; by mid-decade international service accounted for 12 percent of the company's business: FedEx linked over 200 countries and territories worldwide, representing the bulk of global economic transactions. By 1996 the company could boast sales of $10.27 billion against operating income of $624 million.
Further Expansion and a Look to the Future
Aggressive international route expansion included creating divisions in several hemispheres. A Latin America and Caribbean division was created in 1995 to integrate services within the second-fastest world's economic growth area. And in September of that year the company introduced FedEx AsiaOne: a next-business-day service between Asian countries and the United States. Via a hub established at Subic Bay, Philippines, FedEx planned to duplicate its successful hub-and-spoke delivery service within 11 of that continent's commercial and financial centers. Unfortunately, the company's plans were confounded by the Japanese government, which limited FedEx's flying rights from Japan to other Asian countries in mid-1996, after a series of talks between the U.S. and Japan failed to reach a compromise. While the U.S. government contemplated appropriate sanctions against the Japanese government for its failure to honor existing flight privileges with FedEx, Japan viewed the company's growing success in Asia as a threat to its own overseas cargo industry. Despite difficulties with Japan, the extension of its world-renowned service to the Pacific Rim area placed FedEx in a strategic position within one of the fastest-growing economic centers in the world--particularly with regard to China, where the company was the sole U.S.-based cargo service then authorized to do business.
Through 2015 the international express air cargo market was predicted to grow nearly 18 percent per year; FedEx was expected to reap a major portion of that growth as it saw its foreign operations increasing by as much as 25 percent per year. By retaining the confidence of its customers through its logistical capabilities, expanding the carrying capacity of its fleet of over 557 fuel-efficient aircraft and 37,000 vehicles, and a continued dedication to providing cost-effective express service, "FedEx it" continued to be the generic way to request express shipment.
Principal Subsidiaries: Federal Express Aviation Services; Federal Express International; Flying Tiger Line Inc.; Tiger Inter Modal Inc.; Tiger Trucking Subsidiary Inc.; Warren Transport Inc.
OVERALL
Beta: 1.16
Market Cap (Mil.): $29,242.55
Shares Outstanding (Mil.): 315.66
Annual Dividend: 0.48
Yield (%): 0.52
FINANCIALS
FDX.N Industry Sector
P/E (TTM): 22.36 5.50 16.70
EPS (TTM): 1,166.07 -- --
ROI: 6.23 1.19 3.22
ROE: 8.95 1.65 5.81
Statistics:
Public Company
Incorporated: 1971 as Federal Express Corporation
Employees: 11,000
Sales: $10.27 billion
Stock Exchanges: New York Toronto Boston Midwest Pacific
SICs: 4513 Air Courier Services; 4212 Local Trucking Without Storage
Name Age Since Current Position
Smith, Frederick 66 1998 Chairman of the Board, President, Chief Executive Officer
Graf, Alan 58 1998 Chief Financial Officer, Executive Vice President
Bronczek, David 56 2000 President and Chief Executive Officer - FedEx Express
Rebholz, David 57 2007 President and Chief Executive Officer - FedEx Ground
Logue, William 52 2010 President and Chief Executive Officer of FedEx Freight Corp
Carter, Robert 51 2007 Chief Information Officer; Executive Vice President - FedEx Information Services
Richards, Christine 55 2005 Executive Vice President, General Counsel, Secretary
Glenn, T. Michael 55 1998 Executive Vice President - Market Development and Corporate Communications
Walsh, Paul 55 1996 Director
Smith, Joshua 70 1989 Director
Hyde, Joseph 68 1977 Director
Barksdale, James 68 1999 Director
Jackson, Shirley 64 1999 Director
Edwardson, John 61 2003 Director
Loranger, Steven 59 2006 Director
Loveman, Gary 50 2007 Director
Schwab, Susan 56 2009 Director
Steiner, David 50 2009 Director
Address:
2005 Corporate Avenue
Memphis, Tennessee 38132
U.S.A.
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