Maier to replace Rebholz as head of FedEx Ground
January 15, 2013
Earlier today, transportation and logistics bellwether FedEx announced that Henry J. Maier will succeed David F. Rebholz as president and CEO of FedEx subsidiary FedEx Ground.
FedEx Ground provides ground small package and delivery services. The company announced that Rebholz would retire, effective May 31, last October, when it announced its programs targeting annual profitability improvement of $1.7 billion during the next three years, with a significant portion of the benefits achieved by fiscal 2015. The Memphis Business Journal reported in October that FedEx plans to continue network investments to accommodate growth and is planning for a 45 percent increase in daily package capacity, three new FedEx Ground hubs and one relocated hub. The company will also relocate 165 stations and expand 18 automated stations.
Rebholz has served as president and CEO of FedEx Ground since 2007 and also serves on the Strategic Management Committee of FedEx Corp. Prior to joining FedEx Ground, Rebholz was executive vice president, Operations and Systems Support for FedEx Express, in which his responsibilities included Air Operations, U.S. Air-Ground and Freight Services, U.S. Ground Operations, Customer Service and Central Support Services, according to his executive bio on the company’s Web site. In that capacity, he managed more than half of the corporation’s worldwide employment.
The bio added that Rebholz began his career with FedEx in 1976 as a part-time employee and moved into management in 1978. And In 1982 he became the regional sales director in the company’s Western Region. He was named vice president of Customer Service in 1988 and vice president of Operations in the Central Region of the United States in 1991. Rebholz was promoted to senior vice president of Global Sales and Trade Services in 1993 and senior vice president of U.S. Ground Operations in 1996. He was appointed executive vice president, Operations and Systems Support, in December 1999.
Rebholz’ successor, Maier, is a 30-year transportation sector veteran and has been at FedEx for more than 25 years. His current role is Executive Vice President at FedEx Ground, where he oversees all strategic planning, corporate communications and contractor relations. Previously at FedEx, he held a series of leadership positions in logistics, sales, marketing and automation.
FedEx said that in his new position, Maier will be responsible for the leadership and strategic direction of the FedEx Ground segment, which includes FedEx Ground, FedEx Home Delivery and FedEx SmartPost, and he will also serve on the Strategic Management Committee of FedEx Corporation.
“Henry has vast experience going back to the early days of FedEx Ground and has played a leading role in shaping the incredible long-term success of the company,” said Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp., in a statement. “FedEx Ground has differentiated itself with industry-leading speed and outstanding service, and customers are increasingly choosing FedEx for ground package transportation. I have the utmost confidence that under Henry’s leadership, FedEx Ground will continue to successfully drive its growth strategy and further strengthen its competitive position. I also want to again recognize Dave Rebholz for his passionate leadership and countless contributions over a 37-year career at FedEx.”
In its fiscal second quarter earnings release last month, FedEx said FedEx Ground revenue at $2.59 billion was up 11 percent, and operating income at $412 million was up 4 percent. Quarterly operating margin at 15.9 percent was down from 17.0 percent. Company officials said revenue growth was driven by business acquisitions and growth at FedEx Trade Networks, while core express revenue growth was hindered by global economic conditions and Superstorm Sandy.
FedEx Ground average daily volume grew 8 percent in the second quarter driven by increases in both FedEx Home Delivery and business-to-business services, and revenue per package increased 2 percent due to increased rates and higher extra service revenue. FedEx SmartPost average daily volume increased 17 percent primarily due to growth in e-commerce, and FedEx SmartPost net revenue per package increased 2 percent due to a change in service mix and to rate increases, partially offset by higher postage rates.
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