저자: RajSubramaniam · 외국인
요약 보기
FedEx 분기 실적이 매출·이익 모두 예상을 웃돌았고 연간 가이던스 하단을 상향. 4년간 약 40억 달러 비용 절감, 올해 10억 달러 목표 달성 중. B2B 비중 66%이며 데이터센터·AI 관련 물류, 헬스케어·항공우주·방산 수주 확대 강조. 유럽은 서비스 개선 중이나 개선 여지 많음. 중국→미국 물동량은 감소했으나 아시아 역내·중남미·중동 등 물동량 증가. MD11 사고 관련 점검 진행 중.
다듬은 글
You look at these numbers from FedEx at the close say the freight powerhouse reported truly strong quarter with higher than expected revenues and a 70% earnings speed of $412 basis. Even better, management raised the low end of their fullear forecast for both revenue and earnings. This company spent years trying to cut costs and optimize it delivery network.
Clearly, those efforts are paying off. And even though the freight division came in a little weaker than expected, that business has been struggling for a while now and FedEx plans to spin it off next year. So let's take a close look with Raj Superman. He is the president CEO of FedEx to learn more.
Mr. Superman, welcome back to Mad Money. Hey Jim, thank you for having me on on your show and I'm just delighted about this quarter. You know, we have VU revenues 7% and bottom line 17%. And despite trying circumstances, I'm just shout out to the entire FedEx team who delivered these results. Well, it it's very clear that this is the kind of quarter that we've been looking for FedEx, the stock did run up in anticipation because I think people just understood that a lot of what you're doing, the cost cutting programs, uh the longer term, uh yeah, really kind of like what you did with healthcare, which is obviously winning.
you are starting to win one by one in the verticals. Tell us where you are in terms of taking share from everybody else. Well, I think first of all, as you said, you know, we put in place a structural cost reduction program. We took $4 billion out in the last three years and we have a billion dollars target for this year and we are on track for that.
But I think the most important thing for this quarter was the revenue growth story. And we are, as you can imagine, FedEx is the heartbeat of the industrial economy. That's the global network that we have put in place. Our focus is always on differentiation and providing new value for our customers.
So we are winning in key verticals whether it's healthcare, whether it's aerospace, whether it's defense and now the newly minted uh data center uh you know and the AI investments. So this is a you know very strong quarter for us because uh we have been putting these plans in place for some time but now the team is really executing and I'm just really proud of that proud proud of our teams.
All right, let's talk about the AI investment in particular for your company. If I went to some of your more modern warehouses, would I see people or I just see robots? Well, I think from uh the from our perspective, if you go to the newer hubs, you know, you will see that there's this huge building.
The packages go through this go through that facility in matter of minutes with with all machines. But there are you know we have truck loading and truck unloading that is manual and there are robotic solutions being being built for that as well. But I was referring also to supporting customers who are investing in data centers and when they talk about these you know billions and billions of dollars of investments that means they have to move these parts around the world and we are in full support of that as well.
Well go over that with me because I know that for a data center there literally can be hundreds of thousands of parts. I never really had an idea how they got there. They're going through fed they're going through FedEx. Oh well, we are we are part of the solution obviously you know these things are moving within the country.
They're moving cross cross border and as you as our network as we have built it over 52 years this is in place now to move anything in a pro any product from any one part of the world to any other part of the world and uh moving through customs clearance moving through borders those kind of things. So we provide a unique solution uh for for for that business and as investment grows in this space that translates to more B2B business for FedEx.
Okay, that I was just going to go there. I was thinking you know what I'm listening to this man is saying to me he's not talking about Christmas. He's not talking about holidays. That's B TOC. That's a hard business and the margins aren't that good. B2B the margins are great. Where are you in some sort of transformation?
We'll be thinking of FedEx as a B2B business that also happens to work for for uh consumers 100% because you know the the network that we have built over the last 52 years is really reflective of the high value supply chains in the world. We are the heartbeat of the industrial economy. Now of course we can provide services on B TOC on that platform.
Obviously we've seen significant growth on B TOC as well. So, you know, that's been a more prominent feature in the last few years in terms of what people are thinking about FedEx, but ultimately FedEx is 66% of our revenue comes from B2B. Okay, that's really you look I would have before you told me that in two years ago even I would have said all right well tell me how Black Friday was maybe will Black Friday ever be an afterthought where you'll make good money but you won't take your eye off the prize of businessto business?
Well, we'll never take our eye off the ball for B2B. is we know we have a very very dedicated focus uh to support our B2B customers. I was just in our Memphis hub uh just two nights ago and we're putting in place specific uh services that move our healthcare customers for example. However, having said that, you know, we are also, you know, big in the B2C side of the house.
We are having a very good peak. We're right alongside of the forecast that we thought it was going to be and it's going to be, you know, high singledigit year-over-year growth for peak. We got one more week to go. So, I'm not counting it all till it's all finished. But we're, you know, despite mother nature being uh being a little bit finicky this this this month, our teams have done a tremendous job.
If I were the Federal Reserve chairman, I would say, well, wait a second. Everyone tells me I should cut rates, but these guys are growing at a high single digit. How do you figure why your business has far exceeded what the GDP growth is right now? Well, I think we are executing at a very very high level.
We are undergoing three different transformations at the same time. The first is a networks transformation both domestic and international. We're going through an organizational transformation with one FedEx. We you know removing all the silos that existed before. And we're also going through a digital transformation.
With all this we are executing at a very very high level and I think that's part of the story. It's too early for me to say how much of it is market and how much of it is FedEx. Now what are we thinking drive? What are we thinking? What are we thinking about how much money you're saving? Well, I think the, you know, for example, from a structural cost perspective, like I said, we we removed about $4 billion in the last three years.
Our target was a billion for this year. We are right on track for that. We're halfway through this fiscal year, and we are more than halfway uh to that target. So, that's that's going great. uh the the tririccolor network has been absolutely fantastic especially in this current trading environment that provides us the flexibility and the precision and the resilience in this environment and I think that's that's what's play paid real dividends especially as the trading patterns have shifted dramatically in the external environment.
Okay. So tell me about where Europe is uh compared to where it was 5 years ago. Well, I think you know we are very pleased with our progress in Europe. Uh, you know, it all started with service and that's when about a few quarters ago, you know, we had some challenges that we had to fix, technological challenges.
We fixed that. We fixed our service that translated into revenue growth which translated into profit improvement. Having said that, we have a long way to go here. And so there's a significant upside for us to to generate in Europe. We have put in you know it's primarily 80% of the businesses in Europe is a groundbased business.
So we have now moved some of the top management from our ground business or the legacy FedEx ground into Europe and that's paid huge dividends. So I'm pleased with the progress but we have significant upset ahead. Okay let's go China. You probably know China and because your business council work better than anybody.
Where are we? What are we doing with tariffs? How are we feeling about it? Can it ever be a growth business again? Well, I think for you know the the supply chain patterns and trade patterns are changing. We're going from one equilibrium state that has been in place for 30 years or so to another and we're right in the middle of that transition.
China to United States has declined significantly in the in the last 6 months and we have flexed down our capacity significantly accordingly. However, as you've seen probably reports, the China's trade surplus is actually up, right? Meaning that there's more traffic going to other parts of the world.
So, our intraasia traffic is up or Asia to Europe, which is primarily B2B actually is is up and Latin America inbound is up. You know, Asia to Middle East and India is up. India Alburn is up. So, this patterns are changing. The fact that we already have a scaled network globally in place and the fact that we have intelligence on high value supply chains coming from the bottom up allows us to move with precision and agility and that's what's helping us in this environment.
Has reassuring helped you? I know that when you talk about Eli Lilly for just putting up billions of dollars worth of plants that's healthcare that's you. Mexico trading partner that's you fill us in about the new US and what it looks like for FedEx. Yeah. No, this is the point I was trying to make because when we have a scale network in place, we are here, there and everywhere and that's what allows us to, you know, the traffic's moving from Mexico to United States.
Obviously, that's a big big big opportunity for us. And we are now, you know, making moves all around the world. For example, you know, we have direct flight launch from US to Singapore connection. For example, we have launched a flight out of Dublin, out of Riyad, for example. We opened facilities in Bangalore in India.
We opened facilities in Istanbul. This has all happened in the last 6 months. So we're moving with with pace and uh and you know we as I said we have the intelligence of what's happening from the bottom up and we can move uh with velocity here to to to cater to the demands. All right. Last question.
Uh how are we looking in terms of new planes versus old planes? I mean MD11 I mean got some planes that people don't even know what they look like anymore. Yeah. I think uh firstly uh our our thoughts go out to the folks at UPS uh because this is a a terrible tragedy of the MD11 and we offer all support there and you know our fleet modernization program started in 2012.
In fact our age of our fleet now is you know is younger than our competition because of the modernization program that they've been through. Uh we have uh you know we've done a terrific job of managing the MB11s. I was in the hanger on Tuesday night and we got phenomenal team of aircraft technicians uh dealing with MD11.
Uh we are waiting on uh with what NTSB and uh what FAA are going to give us a protocol and we're ready to execute and get those planes back into air. Well, well congratulations on a great quarter. I I hope the rest of the B TOC goes very well. It's B2B is in my heart because I know that's for big money, but you got to do both and you do a great job.
That's Raj Supermanian, president CEO of FedEx. Thanks for coming on the show, Raj. really appreciate it. Thank you, Jim. I appreciate it very much. Okay, May Bunny's back after the break. Coming up, Kramer takes your calls and the sky's the limit. It's a fast fire lightning round nex CNNBC. Miss something, head to madmoney.cnbc.com.
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