FedEx Freight goes hunting after initial consolidation
The company’s revenue was $2.442 billion in the three months that ended Sept. 30, an increase of 8.1% compared with $2.259 billion in the same period a year earlier.
FedEx Freight is entering what CEO John Smith termed its “hunting phase” after an initial consolidation following the less-than-truckload carrier’s June spinoff from FedEx Corp. The company’s top executive issued the warning to the rest of the LTL segment Oct. 29 during the carrier’s earnings call for the four-month period that kicked off with its initial public offering June 1. FedEx Freight hired a 500-strong dedicated sales force to chase its initial goals as a stand-alone entity, including ambitions to grow market share in LTL verticals where its slice of the pie did not represent the company’s lofty position in the segment. Memphis, Tenn.-based FedEx Freight ranks No. 4 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 1 in the LTL segment. The company’s average daily shipments in the three months that ended Sept. 30 fell 0.7% to 89,105 from 89,717. During FedEx Freight’s first investor day April 8, executives said the carrier expected to increase its small- to medium-size business, grocery, healthcare, and data centers and energy market shares. FDXF Quotes by TradingView See more transportation stock listings “We’re already starting to see traction in some of these verticals,” Smith told analysts and investors. “Even though we’re four months into the hunting phase, we feel really good about the opportunity to continue the momentum that we started building these first four months into the fourth quarter and beyond.” The company was seeing the greatest success so far in the retail sector, the executive said, but also in the grocery and…
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