FedEx To Consolidate Operating Companies Into Federal Express Corporation

(RTTNews) - FedEx Corp. (FDX) said it will consolidate operating companies into one organization. This phased transition will bring FedEx Express, FedEx Ground, FedEx Services, and other FedEx operating companies into Federal Express Corporation. Raj Subramaniam will serve as President and CEO of the combined organization.

FedEx expects DRIVE transformation to generate $4.0 billion of permanent cost reductions in fiscal 2025. The company noted that DRIVE is enabling the implementation of Network 2.0, which is expected to generate an incremental $2 billion of savings in fiscal 2027.

FedEx continues to project costs of up to $2 billion by fiscal 2025 end to implement its business optimization initiatives.

The FedEx Board approved an increase in the annual dividend rate on its common stock of 10%, or $0.44 per share, to $5.04 per share for fiscal 2024. The Board declared a quarterly cash dividend of $1.26 per share of FedEx common stock. The dividend is payable July 3, 2023 to stockholders of record at the close of business on June 12, 2023.