It may soon be possible to invest in FedEx Freight as a stand-alone
FedEx is studying a plan to spin out its freight division as a way to create value for investors. (The Daily Memphian file)
FedEx Corp. likely will spin out its freight division, the highest margin-producer in the portfolio, as a way to create value for investors.
For more than a year, analysts have been asking FedEx when it planned to make a move. (UPS sold its freight division in 2021.)
FedEx is now studying the issue, it said late Tuesday, June 25, in its fourth quarter earnings report. The company’s final plan, which could include maintaining the portfolio of companies as they exist today, will be announced by year end.
The Freight division, FedEx’s less-than-truckload business, carries palletized loads in trucks, far different from the package business — both in weight and network.
But it’s also grown to be the best moneymaker. The way the company stock is structured now, investors can’t simply invest in one division.
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Jane Roberts
Jane Roberts has reported in Memphis for more than 20 years. As a senior member of The Daily Memphian staff, she was assigned to the medical beat during the COVID-19 pandemic. She also has done in-depth work on other medical issues facing our community, including shortages of specialists in local hospitals. She covered K-12 education here for years and later the region’s transportation sector, including Memphis International Airport and FedEx Corp.
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