FedEx fills out Freight executive team ahead of spin off

FedEx management on Tuesday announced several more appointments to run FedEx Freight, the less-than-truckload giant that is scheduled to be spun off as an independent, publicly traded company next spring.

In May, the company named John Smith, the chief operating officer of Federal Express (U.S. and Canada) as president and CEO of FedEx Freight and Brad Martin as the trucking company’s chairman. Smith will remain in his current role until the separation occurs. 

During an earnings call with analysts, CEO Raj Subramaniam said Clint McCoy, who’s worked at FedEx Freight for nearly 30 years, will be chief operating officer. Michael Rogers was named the trucking company’s chief technology officer, having previously worked in a similar role at trucking fuel supplier and travel center operator Pilot Company. Prior to Pilot, Rogers held retail leadership positions at Saks Fifth Avenue and JC Penney. 

Eddie Klank, the current vice president for corporate governance, securities and tax law, will serve as chief human resources and legal officer of FedEx Freight. And Mike Lyons, who has worked at FedEx Trade Networks, the supply chain management arm, since 2007, will serve as chief specialized services and commercial officer. 

FedEx (NYSE: FDX) continues to build out a dedicated sales force for Freight.

Revenue at the largest less-than-truckload carrier in the nation fell 4% to $2.9 billion in the fiscal year fourth quarter due to lower fuel surcharges, reduced weight per shipment, higher healthcare costs and increased wage rates, FedEx reported. The primary challenge, however, is continued weakness in the industrial sector. Operating income was down 6%. The division made a $33 million gain on the sale of a terminal, which accounted for nearly a third of the earnings beat

Year-over-year volume declines moderated sequentially, with average daily shipments down 1% in the fourth quarter compared to down 5% in the third quarter and down 8% in the second quarter. Average daily shipments actually increased 8.3% sequentially, representing the largest Q4 over Q3 since fiscal year 2021.

(Correction: An earlier version of this story misspelled the names of Eddie Klank and Mike Lyons.)

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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