FedEx Corp. has reported earnings of $0.81 per diluted share for the second quarter ended Nov. 30, compared to $0.81 per diluted share a year ago.

Last year's second quarter included $17 million ($0.03 per share, net of tax) of operating income from the favorable resolution of a state sales tax matter.
FedEx Corp. reported the following consolidated results for the second quarter:
-- Revenue of $5.67 billion, up 10% from $5.14 billion the previous year
-- Operating income of $427 million, down 1% from $433 million a year ago
-- Net income of $245 million, unchanged from last year's $245 million.
Total average daily package volume at FedEx Express and FedEx Ground grew a combined 13% year over year for the quarter. FedEx Ground continued its strong growth momentum, as its volume grew 25%, while FedEx Express package volume grew 5%.
"This was a very good quarter for FedEx, as our diverse portfolio of services enabled us to manage well through the current difficult economic environment," said Alan B. Graf Jr., executive vice president and chief financial officer.
Given the weaker than expected U.S. economic growth in the manufacturing and wholesale sectors, earnings are expected to be $0.45 to $0.55 per diluted share in the third quarter, up from $0.39 per diluted share a year ago. Management believes that its $2.77 per share forecast for fiscal 2003 is still achievable with a modest economic recovery in the company's fiscal second half. Capital expenditures for fiscal 2003 are expected to be $1.7 billion, a reduction of $200 million from the initial forecast.