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FedEx adjusted EPS $2.58, operating results improved

Staff writer |
FedEx Corp. reported adjusted earnings of $2.58 per diluted share for the second quarter ended November 30, compared to adjusted earnings of $2.16 per diluted share a year ago.

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Without adjustments, FedEx reported earnings of $2.44 for the second quarter compared to $2.31 per diluted share last year.

Operating results rose year-over-year primarily due to higher base rates and the continued positive impacts from profit improvement initiatives. These benefits were partially offset by lower-than-anticipated volume at FedEx Freight and the modest negative net impact of fuel.

The effective tax rate for the quarter was lowered to 34.5% due primarily to the resolution of a state tax matter.

During the quarter, the company acquired 6.0 million shares of FedEx common stock.

FedEx reaffirms its adjusted fiscal 2016 earnings outlook of $10.40 to $10.90 per diluted share before year-end mark-to-market pension accounting adjustments.

The outlook assumes moderate economic growth and excludes the independent contractor legal settlements and any TNT-related costs or operating results.

The effective tax rate for the full year is expected to be approximately 36% excluding any MTM adjustments and the impact of the TNT transaction. The capital spending forecast for the fiscal year remains $4.6 billion.


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