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FedEx Corporation cuts its capital expenditures 10.7%

FedEx Corporation reported that it reduced its capital expenditures 10.7% in the nine months ended February 28, 2021, to $ 4.202 million.

Headquartered in Memphis, United States, the company offers a broad portfolio of transportation, e-commerce and business services through companies that compete collectively, operate collaboratively and innovate digitally.

FedEx invested $ 1.8 billion in aircraft and related equipment in those nine months and expects to invest an additional $ 460 million in aircraft and related equipment during the fourth quarter of its fiscal year 2021.

Additionally, the company is making multi-year investments of approximately $ 1.5 billion to significantly expand the Indianapolis hub and approximately $ 1.5 billion to modernize the Memphis global hub.

Overall, the company expects these hub investments to deliver productivity gains.

It also anticipates that its cash flow from operations will be sufficient to fund its capital expenditures for the remainder of 2021.

FedEx

The company’s capital expenditures decreased during the nine months of 2021 primarily due to lower vehicle-related spending across all of its transportation segments, as well as lower facilities-related spending.

Its main operating companies are:

  • FedEx Express, the world’s largest express transportation company.
  • FedEx Ground, a leading North American provider of small package ground delivery services.
  • And FedEx Freight, a leading North American provider of small truck freight (LTL) freight services.

During August 2020, the company issued $ 970 million in Transfer Certificates, Series 2020-1AA (the “Certificates”) with a fixed interest rate of 1.875% due February 2034 using transfer trusts.

The Certificates are guaranteed by 19 Boeing aircraft.

 

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