FedEx is spinning off its freight trucking division, FedEx Freight, to focus on its core delivery business and unlock shareholder value. The move is expected to benefit both FedEx and FedEx Freight, allowing for greater growth and operational efficiency.
FedEx announced the spinoff of its freight trucking division, FedEx Freight, on Thursday. The move is part of a restructuring plan to focus on the core delivery business. Analysts expect the spinoff to unlock up to \$20 billion in shareholder value and allow FedEx management to merge its Express and Ground units. They also believe FedEx Freight's assets were undervalued within FedEx and a separate publicly-traded entity will enable expansion and improvement. FedEx Freight is the largest U.S.
provider of less-than-truckload services. Its revenue fell 11% to \$2.17 billion during the second quarter. Despite the spinoff announcement, FedEx warned that 2025 revenue could be impacted by weak demand for its fastest deliveries from business customers. As a result, the company lowered its profit outlook for the full year ending May 2025 to \$19 to \$20 per share
FEDEX SPINOFF FREIGHT TRUCKING SHAREHOLDER VALUE DELIVERY BUSINESS
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