FedEx Corporation (NYSE-FDX) was founded in 1971. The company is headquartered in Memphis, Tennesee, USA. The Chief Executive Officer and Chairman of the company is Raj Subramaniam. FedEx Corporation provides a portfolio of transportation, e-commerce and business services through subsidiaries that operate independently and are managed collectively under FedEx Corporation. The subsidiaries include FedEx Express, TNT Express, FedEx Ground, FedEx Freight and FedEx Services. The FedEx Express segment offers a range of domestic and international transportation services for the delivery of packages and cargo. The TNT Express segment collects, transports and delivers documents, packages and shipments on a daily or time-definite basis. The FedEx Freight segment offers freight transportation services. The FedEx Services segment provides sales, marketing, information technology, communications, customer service and other back-office support to its other companies.
This managed consolidation of FedEx Corporation will be a gradual transition that will ultimately bring FedEx Express, FedEx Ground, FedEx Services and other FedEx operating companies into Federal Express Corporation, which will become a single company operating a single, fully integrated ground-to-air network under the FedEx brand. This full implementation is expected to be completed in June 2024. FedEx expects to realize a permanent cost reduction of $4 billion in fiscal year 2025 as a result of this major consolidation. This includes cost reductions of $1.2 billion in internal communications networks, $1.3 billion in air and international networks, and $1.5 billion in general and administrative cost savings. CEO Raj Subramaniam said: “Over the last 50 years, we have built networks that have created a differentiated and unrivalled service portfolio, with this organisational evolution reflecting how we position ourselves in the marketplace – focused on flexibility, efficiency and intelligence. As one FedEx team, we are well positioned to deliver on our mission to help customers compete and win with the smartest logistics network in the world.”
The company also recently announced plans to reduce managerial positions at FedEx Freight and to adjust and reduce flight networks to ensure stable deliveries with minimal disruption. For fiscal year 2023, the company generated total sales of $90.155 billion with an operating profit of $19.166 billion and employs 529,000 tribal workers.
FedEx Corporation (NYSE-FDX) also pays regular quarterly dividends to its shareholders. The dividend yield is currently 2.04% per annum and the actual dividend amount has been approved by the company’s board of directors at $1.26 per share. Currently, shareholders can also look forward to the dividend payout as the last date to purchase FedEx Corporation (NYSE-FDX) shares using the dividend payout, the so-called Ex-Dividend Date, has been set for March 8, 2024 and the actual dividend payment (Pay Date) has been set for March 21, 2024. According to analysts at brokerage firms and financial strategists at investment banks, the share price can be expected to rise in the short to medium term investment horizon, where the average target price has been set at $297.55 per share.
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