FEDEX (NYSE: FDX) LATEST Q2 FY 2021 EARNINGS CALL HIGHLIGHTS
FEDEX (NYSE: FDX) LATEST Q2 FY 2021 EARNINGS CALL HIGHLIGHTS

With the coronavirus and its third surge in many countries, the near-term economic outlook remains unclear. In the U.S,. goods spending is above pre-pandemic levels, powered by gains in e-commerce. We’re also seeing growth beyond the consumer as drivers of business activity are increasingly in place.

Inventory restocking and a strong recovery in capital goods spending are supporting industrial production. Positive developments on the vaccine front should strengthen the appetite for investment. However, the service sector does remain challenged and faces short-term uncertainty against the latest virus surge. When the health emergency ends and pent-up services demand is released, we should see a long growth runway.

International growth rebounded in the third quarter of calendar year 2020 with the goods sector outperforming services. Sentiment among manufacturing firms is solid, while trade growth is becoming more broadly based around the world.

China’s economy has surpassed pre-COVID levels and is leading a strong recovery in East Asia. In contrast, however, Europe has been slower to recover and faces short-term headwinds from virus containment.

The pandemic has accelerated the growth of e-commerce volumes. In the first nine months of 2020, U.S. e-commerce sales grew 33% year-over-year, while traditional retail sales, excluding auto, gas, food service and goods services grew a little more than 1% year-over-year. E-commerce package volumes are expected to more than triple to 111 million packages per day by 2026, up from 35 million in 2019.

We expanded Sunday residential delivery to nearly 95% of the U.S. population in September. Since then, we have made more than 50 million Sunday residential deliveries. Our investment in seven-day delivery has given us a speed advantage for e-commerce that is near-impossible to match without a national Sunday delivery offering.
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