FedEx plans spin-off of freight trucking division to boost shareholder value

FedEx plans to separate its profitable freight trucking division into a new publicly listed company. This move aims to provide immediate benefits for shareholders but does not address the larger issue of declining volumes in its core parcel delivery business. The freight division generated $9.4 billion in revenue last year, accounting for a significant portion of FedEx's operating income. Analysts estimate the new company could be valued between $30 billion and $35 billion, though its growth has slowed recently. The spin-off is expected to be completed in 18 months. However, concerns remain about the new company's debt, potential loss of customers, and how FedEx will support its lower-margin delivery businesses without freight revenue.