FEDEX Corporation has posted consolidated results for the second quarter ended November 30, 2006 that show net income rose eight per cent to US$511 million over the same period the previous year.

Revenue was up 10 per cent year on year to $8.93 billion; operating income rose six per cent to $839 million; and the operating margin fell from last year's 9.8 per cent to 9.4 per cent for the second quarter.

The growth was partly driven by total combined average daily package volume at FedEx Express and FedEx Ground rising seven per cent over the same quarter last year, led by ground and international express package growth.

The quarter's results also included costs associated with the new pilot labour contract at FedEx Express, a company statement said.

The firm also announced a net 3.5 per cent average price increase on American domestic and US export express shipments, and a 4.9 per cent average price increase on FedEx Ground services.

Less-than-truckload (LTL) shipments increased 28 per cent year on year because of FedEx National LTL's acquisition and higher demand for FedEx Freight's regional and interregional services.

For the Express segment, FedEx reported revenue of $5.69 billion, up six per cent year on year; an operating income of $502 million, up five per cent; and a slightly lower operating margin of 8.8 per cent, down from 8.9 per cent the previous year.

FedEx International Priority (IP) revenue grew 12 per cent for the quarter, as IP revenue per package grew six per cent because average daily package volume increased by the same amount. US domestic revenue per package rose by three per cent, while package volume declined one per cent.

As for FedEx Ground, it posted second quarter revenue of $1.52 billion, up 16 per cent from last year's $1.31 billion; an operating income of $191 million, up 17 per cent; and a slightly lower operating margin of 12.6 per cent.