FedEx Freight announced John A. Smith will serve as the LTL carrier's president and CEO once its planned spinoff is completed by next year, according to a news release Monday.
Smith is currently FedEx's COO for U.S. and Canada ground operations, which covers the logistics giant's LTL freight and parcel services. He will continue to occupy his current role until the spinoff occurs by June 2026.
From 2018 to 2021, Smith led FedEx Freight as its president and CEO. FedEx said in the release that he "successfully grew the company’s revenue and operating income while safely navigating the team through the challenging dynamics associated with the pandemic."
FedEx also announced R. Brad Martin, vice chairman of the company's board of directors, will serve as FedEx Freight's chairman of the board post-spinoff.
“I cannot think of two individuals with more knowledge of, or commitment to, the long-term success of the FedEx Freight business than John Smith and Brad Martin,” said Raj Subramaniam, FedEx president and CEO, in the release. “Together they have the track record and expertise to successfully lead this new and exciting chapter for the independent FedEx Freight company.”
FedEx Freight's financial results faltered for Q3, which ended Feb. 28, due to lower fuel surcharges, reduced weight per shipment and lower volume. Revenue dropped 6% year over year while operating income plummeted by 23%, per an earnings release.
"We expect headwinds from FedEx Freight to continue in Q4, but forecast some moderation on a year-over-year basis," FedEx CFO John Dietrich said in an earnings call.
