FedEx (FDX)
Q2 2013 Earnings Call
December 19, 2012 8:30 am ET
Executives
Mickey Foster
Frederick W. Smith - Founder, Executive Chairman, Chief Executive Officer and President
T. Michael Glenn - Executive Vice President of Market Development & Corporate Communications, Chief Executive Officer of Fedex Services and President of Fedex Services
Alan B. Graf - Chief Financial Officer and Executive Vice President
David J. Bronczek - Chief Executive Officer of FedEx Express and President of FedEx Express
William J. Logue - Chief Executive Officer and President
Christine P. Richards - Executive Vice President, General Counsel and Secretary
David F. Rebholz - Chief Executive Officer of FedEx Ground Package System Inc and President of FedEx Ground Package System Inc
Analysts
Thomas R. Wadewitz - JP Morgan Chase & Co, Research Division
Robert H. Salmon - Deutsche Bank AG, Research Division
Nathan Brochmann - William Blair & Company L.L.C., Research Division
David G. Ross - Stifel, Nicolaus & Co., Inc., Research Division
Helane R. Becker - Dahlman Rose & Company, LLC, Research Division
Benjamin J. Hartford - Robert W. Baird & Co. Incorporated, Research Division
William J. Greene - Morgan Stanley, Research Division
Christian Wetherbee - Citigroup Inc, Research Division
Salvatore Vitale - Sterne Agee & Leach Inc., Research Division
Scott H. Group - Wolfe Trahan & Co.
Ken Hoexter - BofA Merrill Lynch, Research Division
Brandon R. Oglenski - Barclays Capital, Research Division
Arthur W. Hatfield - Raymond James & Associates, Inc., Research Division
Elliott Waller - Jefferies & Company, Inc., Research Division
Patrick C. Geekie - Crédit Suisse AG, Research Division
Anthony P. Gallo - Wells Fargo Securities, LLC, Research Division
David Vernon - Sanford C. Bernstein & Co., LLC., Research Division
Presentation
Operator
Good day, everyone, and welcome to the FedEx Corporation Second Quarter Fiscal Year 2013 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mickey Foster, Vice President of Investor Relations for FedEx Corporation. Please go ahead, sir.
Mickey Foster
Good morning, and welcome to FedEx Corporation's Second Quarter Earnings Conference Call. The second quarter earnings release and our Stat Book are on our website at fedex.com. This call is being broadcast from our website, and the replay and podcast will be available for approximately 1 year. Joining us on the call today are members of the media. [Operator Instructions] Preference will be given to inquiries of a long-term strategic nature.
I want to remind all listeners that FedEx Corporation desires to take advantage of the Safe Harbor provisions of the Private Securities Litigation Reform Act. Such statements in this conference call may be considered forward-looking statements within the meaning of the act. Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For additional information on these factors, please refer to our press releases and filings with the SEC.
In our earnings release, we include certain non-GAAP financial measures, which we may discuss on this call. Please refer to the release available on our website for further discussion of these measures and a reconciliation of them to the most directly comparable GAAP measures. To the extent we disclose any other non-GAAP financial measures on this call, please refer to the Investor Relations portion of our website at fedex.com for a reconciliation of such measures to the most directly comparable GAAP measures.
Joining us on the call today are Fred Smith, Chairman, President and CEO; Alan Graf, Executive Vice President and CFO; Mike Glenn, President and CEO of FedEx Services; Chris Richards, Executive Vice President, General Counsel and Secretary; Rob Carter, Executive Vice President FedEx Information Services and CIO; Dave Bronczek, President and CEO of FedEx Express; Dave Rebholz, President and CEO of FedEx Ground; and Bill Logue, President and CEO of FedEx Freight. And now our Chairman, Fred Smith, will share his views on the quarter.
Frederick W. Smith
Thank you, Mickey. Good morning, and welcome to our conference call to discuss operating and financial results for the second quarter of fiscal 2013. We're very pleased with the operating results at FedEx Ground and FedEx Freight, which continue to show improvement. At FedEx Express, persistent weakness in the global economy and increasing demand for lower-yielding international services limited profits during the quarter. Superstorm Sandy affected overall earnings as well.
At the October investors and lenders meeting, we showed you plans to improve annual profitability by $1.7 billion during the next 3 years with a significant portion of the benefits achieved by fiscal year 2015. I'm very confident we're on our way to achieving this ambitious goal. We're hard at work currently on another record-setting holiday shipping season driven by the increasing popularity of e-commerce. On Monday, December 17, team members moved about 19.8 million shipments through our various systems around the world, a daily record. For the overall holiday, we believe volumes in our worldwide networks will increase by more than 13% compared to last year. I'd like to say thank you to all our team members, especially those in the areas affected by Sandy, for their hard work and dedication during this peak season.
Before I turn the call over to Mike Glenn for his views on the economy and Alan Graf for his analysis of the quarter, I'd like to do 2 things. First, I'd like to thank Bill Margaritis, our Corporate Vice President of Communications who will be departing FedEx on December 31 after 16 years of service. Bill, we appreciate everything you've done for us during your time here and look forward to seeing you often in the future. Second, I'd like to congratulate FedEx Express for being recognized by the Great Place to Work Institute as among the word's top 10 best multinational workplaces for the second year in a row. The ranking is the world's largest annual study of workplace excellence and identifies the top 25 best multinationals in terms of workplace culture.
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