FedEx Corporation - FDX STOCK NEWS

FedEx (NYSE: FDX) has announced plans to separate FedEx Freight into an independent publicly traded company through a tax-efficient capital markets transaction within the next 18 months. The separation aims to create two industry-leading companies, enabling enhanced operational focus and strategic execution for both entities.

FedEx Freight, currently generating $9.4 billion in revenue (FY2024), is the largest LTL carrier in its industry. The business has shown strong performance, increasing operating profit by nearly 25% annually over the last five years, with approximately 1,100 basis points of operating margin expansion.

Both companies will maintain commercial and operational synergies, with FedEx Freight continuing to operate under the FedEx brand. The remaining FedEx business segments generated $78.3 billion in revenue in FY2024 and continue to target $4 billion in DRIVE cost savings by FY2025 and $2 billion in Network 2.0 savings by FY2027.

FedEx has played a important role in supporting disaster relief efforts following the record-breaking 2024 hurricane season, particularly after Hurricanes Helene and Milton. Hurricane Helene, a Category-4 storm, was the deadliest to hit the continental U.S. since Katrina (2005), while Hurricane Milton, a Category-3 storm, caused $3.17 billion in insurance claims in Florida.

FedEx partnered with Team Rubicon, a veteran-led disaster relief nonprofit, to deliver essential supplies across five states. The company shipped cold-weather gear and Field Technology kits to 10 Forward Operating Bases, enabling 1,500 Greyshirt volunteers to serve over 37,500 hurricane survivors in Florida, Georgia, and North Carolina.

FedEx highlights its partnership with the Yale Center for Natural Carbon Capture (YCNCC) and their research on enhanced rock weathering (ERW) as a carbon capture solution. The YCNCC is studying the application of finely ground basalt to croplands to understand its impact on soil health and carbon sequestration. The U.S. Midwest alone could potentially sequester 1.5-2 million tons of CO2 annually through ERW.

The initiative, supported by FedEx's $100 million commitment in 2021, aligns with the company's goal to achieve carbon neutral operations by 2040. ERW offers multiple benefits, including improved soil pH, increased crop yields, reduced fertilizer dependence, and potential revenue from carbon credits for agricultural landowners.

FedEx celebrates the 20th anniversary of its Trees for Troops program in partnership with the Christmas SPIRIT Foundation. Over the past two decades, the initiative has delivered more than 300,000 Christmas trees to military families across the U.S. This year, the program will distribute over 15,000 trees to 93 military bases. Since 2005, FedEx drivers have logged more than a million miles transporting these trees, which are donated by tree farms and garden centers nationwide. The program, which began with 4,300 trees delivered to 5 bases in its first year, now marks a significant milestone in supporting military families during the holiday season. Each tree comes with handwritten messages of gratitude, with recent deliveries including a special ceremony at Ft. Campbell, Kentucky, on December 7.

Durga Das, a former professional sportswoman and entrepreneur, is highlighted as part of the Vital Voices Global Fellowship's VV Venture Program, supported by FedEx. As founder of Aeronero, Das is revolutionizing the water industry through air water generation (AWG) solutions.

Aeronero's achievements include:

• Delivered 270+ water solutions
• Impacted 4 million lives
• Generated 12 million liters of water
• Saved 50 million liters of water

Das also established WODER charity in the UK, addressing water scarcity in refugee camps. Her initiative 'Windependence' empowers women through water production and distribution. Aeronero recently won the 'Best Innovator' award at the World Health Assembly and was included in the 2024 MB100 global awards list.

FedEx commemorates Giving Tuesday by recognizing the vital role of nonprofits in communities. The company acknowledges organizations that provide crisis support, assist small businesses, promote climate solutions, and address local community needs. FedEx also recognizes its employees' contributions through volunteering and community support initiatives. The announcement references FedEx Cares, the company's global community engagement program, which serves as a platform for these charitable efforts.

FedEx has been recognized as a 2024 'Top Company for Women to Work in Transportation' by Redefining the Road magazine, the official publication of Women In Trucking Association (WIT). The company made WIT's 'Elite 30' list, which highlights organizations receiving the highest industry-wide votes. Selection criteria included corporate cultures fostering gender diversity, competitive compensation, flexible work arrangements, and professional development opportunities. FedEx was acknowledged for its commitment to supporting women across various roles, from drivers to leadership positions, through DEI&O programs and merit-based hiring policies.

FedEx (NYSE: FDX) has declared a quarterly cash dividend of $1.38 per share on its common stock. The dividend will be paid on January 3, 2025, to stockholders of record as of December 9, 2024. The company, which generates annual revenue of $88 billion, employs over 500,000 people and provides transportation, e-commerce, and business services worldwide through its global network. FedEx aims to achieve carbon-neutral operations by 2040.

FedEx released its annual economic impact report for FY2024, demonstrating significant global economic contributions. The company delivered $85 billion in direct impact and $39 billion in indirect impact to the global economy, representing approximately 0.1% of world's total net economic output. With operations in over 220 countries, FedEx employs more than 500,000 people across 5,000+ facilities and handles an average of 16 million packages daily. In the US, FedEx contributed 6.7% to the Transportation and Warehousing sector and indirectly added $8.1 billion to net output. The company continued network optimization, expanded its EV fleet, and invested in facility improvements including new hubs in Dubai and Memphis.