FedEx has reported increased profits and revenue during the first quarter of its fiscal year that ended August 31.

Net income was $489 million, up 7% from last year's $459 million, while revenue was $11.0 billion, up 2% from $10.8 billion the previous year.

It said the results were “driven by solid performance at each of the company's transportation segments.”

During the quarter the FedEx Freight division reported revenue of $1.42 billion, up 2% from last year's $1.4 billion with operating income of $91 million, up 1% from $90 million a year ago

“Less-than-truckload yield increased 1% due to FedEx Freight Economy and FedEx Freight Priority base yield improvement,” the company said. “LTL weight per shipment grew 1% due to heavier FedEx Freight Priority, while LTL average daily shipments increased 1% due to FedEx Freight Economy.”

The company also announced FedEx Express will increase shipping rates by an average of 3.9% for U.S. domestic, U.S. export and U.S. import services effective January 6. The FedEx Ground and FedEx SmartPost pricing changes for 2014 will be announced later this year. FedEx Freight implemented a 4.5% general rate increase on July 1.

FedEx reaffirmed its forecast of full-year earnings per share growth of 7% to 13% from last year's adjusted results. This outlook assumes the market outlook for fuel prices, U.S. gross domestic product growth of 2.1% and world GDP growth of 2.6%.

Currently the company is in the midst of a more than $1.5 billion cost-cutting program that includes eliminating jobs, reducing service to parts of Asia and idling older equipment, as customers are turning to cheaper shipping alternatives.

More details are on the FedEx website.