FedEx Corp. posted net income of $493 million for the second quarter, a 3% increase over $479 million in the prior year.
The package delivery giant reported revenue of $9.5 billion for the quarter ended Nov. 30, a 1% increase over $9.4 billion last year
The Memphis company’s FedEx Express segment reported revenue of $6.10 billion for the quarter, a1% increase over $6.04 billion in the prior year.
The unit posted operating income of $540 million, up 2% from $531 million in the prior year and an operating margin of 8.9%, up from 8.8% the previous year
According to the firm, operating income and margin reflect the benefits of rapidly decreasing fuel prices during the quarter and of the timing lag that exists between when fuel prices change and when indexed fuel surcharges automatically adjust.
“Our financial performance is increasingly being challenged by some of the worst economic conditions in the company's 35-year operating history,” said Frederick W. Smith, CEO, in a statement. “With the decline in shipping trends during our second quarter and the expectation that economic conditions will remain very difficult through calendar 2009, we are taking additional actions necessary to help offset weak demand, protect our business and minimize the loss of jobs.”
