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Our Bureau

Mumbai , Dec. 28

FedEx Corporation has reported earnings of $1.53 per diluted share for the second quarter ended November 30, compared to $1.15 per diluted share a year ago, an increase of 33 per cent.

During the second quarter, the company reported revenues of $8.09 billion, up 10 per cent from $7.33 billion in the previous year. Operating income at $790 million was up 32 per cent from $600 million a year ago, operating margins grew 9.8 per cent up from last year's 8.2 per cent, while net income at $471 million was up 33 per cent from $354 million in the previous year.

FedEx Corp offers integrated business solutions through a network of subsidiaries operating independently, including FedEx Express, its express transportation company; FedEx Ground, a provider of small-package ground delivery service in North America; and FedEx Freight, a provider of regional less-than-truckload freight services.

An official statement quoting Mr Frederick W. Smith, Chairman, President and Chief Executive Officer, FedEx Corporation, said: "Customer demand for our portfolio of transportation services, a disciplined pricing approach by FedEx and productivity gains led to a sharp improvement in our operating margins. FedEx is also benefiting from solid economic growth year over year in the US and Asian economies, which we expect to continue in 2006."

Total combined average daily package volume at FedEx Express and FedEx Ground grew 3 per cent year over year for the quarter, led by improved international express package growth.

For the second quarter, the FedEx Express segment reported revenue of $5.37 billion, up 11 per cent from last year's $4.83 billion. Operating income at $476 million was up 43 per cent ($333 million) while operating margins improved to 8.9 per cent (6.9 per cent).

FedEx International Priority (IP) revenue grew 14 per cent for the quarter. IP average daily package volume grew 8 per cent due to strong growth in Asia and Europe and continuing growth in US export. IP revenue per package grew 5 per cent, primarily due to higher fuel surcharges.

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