E-commerce drives FedEx Ground revenues

PITTSBURGH, PA- FedEx is set to release its second quarter fiscal earnings on Dec. 17 and experts expect the firm’s ground segment to continue to be driven by e-commerce volume growth.

According to preliminary estimates by the U.S. Census Bureau, e-commerce sales grew 16.2 percent between August and October. FedEx’s Q2 will also likely see a spike in e-commerce because of holiday season sales.

FedEx invests in e-commerce

With plans to expand e-commerce operations, FedEx announced they will buy Pittsburgh-based logistics firm Genco, which specialized in product returns.

Genco, which handles over 600-million returned items per year, had annual sales of $1.6 billion and more than 11,000 employees, according to FedEx.

“The acquisition of GENCO will transform our global portfolio through the addition of new best in class supply chain management services,” said Frederick Smith, chairman and CEO of FedEx Corp. “As e-commerce continues to grow, customers of both companies will reap the benefits from the broadened capabilities and powerful new services.”

FedEx announced the deal during their busiest day of the season, Dec. 15, when over 22.6 million packages are expected to be moved- 290 million are expected to be moved by Christmas.

Todd Peters will remain CEO of Genco after the transaction, according to FedEx and Genco will continue to operate as a separate company until the acquisition closes in 2015.

The transaction is subject to customary closing conditions, including compliance with U.S. and Canadian antitrust law requirements. 


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