FedEx Corp. reported earnings of $0.42 per diluted share for the quarter ended Aug. 31, including $0.27 per diluted share of costs associated with early retirement and severance programs.

In addition, there was a one-time benefit of $0.08 per diluted share resulting from a court ruling in favor of the company over the tax treatment of jet engine maintenance costs.
Excluding these costs and one-time benefit, earnings for the first quarter were $0.61 per diluted share. In last year's first quarter, earnings were $0.52 per diluted share.
"FedEx had a strong quarter, led by improvement in our International Express, Ground and Freight yields, year-over-year growth in U.S. domestic Express package volume and outstanding cost management across the company," said Alan B. Graf, Jr., executive vice president and chief financial officer.
In August, FedEx received a favorable ruling from the U.S. District Court in Memphis in a lawsuit filed by the company over the tax treatment of jet engine maintenance costs. The court held that these costs were ordinary and necessary business expenses and properly deductible by FedEx. As a result of this decision, net interest and the company's tax provision were reduced, with the company realizing a one-time benefit of $0.08 per diluted share. The tax rate for the first quarter was 34.5%. The company expects its effective tax rate for the second through fourth quarters to be 38.0% and 37.5% for the full year.