FedEx says Express segment results improved during Q2

Federal Express segment operating results improved during the quarter, driven by higher U.S. domestic and International Priority package yields, continued cost savings from transformation initiatives, lower business optimization costs, and increased U.S. domestic package volume. These factors were partially offset by the financial impact of global trade policy changes, higher wage rates and variable incentive compensation expenses, increased purchased transportation rates, and the grounding of the MD11 aircraft fleet. FedEx (FDX) Freight segment operating results decreased during the quarter due to lower shipments, higher wage rates, and the hiring of additional dedicated LTL sales professionals in preparation for the company’s spin-off, partially offset by increased yield. FedEx Freight incurred one-time spin-off-related costs of $152 million during the quarter.