FedEx intends to separate its freight trucking business, by Reuters

(Reuters) – FedEx on Thursday announced the long-awaited spin-off of its less-than-truckload shipping division, as it looks to restructure its operations and focus more on its core delivery business.

Shares of the parcel delivery giant rose about 10% in after-hours trading.

Analysts believe the offering could unlock up to $20 billion in shareholder value while paving the way for FedEx’s (NYSE:) management to focus on restructuring, which could boost the long-term growth prospects of its core package operations and what will become a separate shipping business.

FedEx Freight is the largest U.S. provider of less-than-truckload services, which involves transporting multiple shipments from different customers on a single truck; Shipments are then routed through a network of service centers where they are transferred to other trucks with similar destinations.

FedEx also said adjusted earnings fell to $0.99 billion, or $4.05 per share, in the second quarter, from $1.01 billion, or $3.99 per share, a year earlier.