FedEx CEO says especially pleased with results of Ground segment

CEO Rajesh Subramaniam says: “At the segment level, I’m particularly pleased with the results of ground, where adjusted operating income increased 14% on 1% revenue growth and adjusted operating margin improved to over 11% in the quarter. This reflects continued progress controlling expenses and effective yield management including the ramping benefits from DRIVE. At Freight, the team’s continued focus on profitable growth and cost management delivered strong margins and mitigated year-over-year volume challenges. Service levels remain exceptionally high, demonstrating our differentiated execution capabilities. We’re also making progress at Express, where adjusted operating income increased enabled by our ability to remove structural costs… As I look across the business and these financial results there are clear signs of progress on our transformation. Our strategy is generating results, and we are well placed to maintain our leadership position while delivering improving financial outcomes.” Comments taken from Q3 earnings conference call.