The FINANCIAL -- FedEx  reported earnings of $1.57 per diluted share for the second quarter ended November 30.

Last year's second quarter earnings were $0.89 per diluted share, which included $0.27 per diluted share in costs related to the combination of the company's FedEx Freight and FedEx National LTL operations and a reserve associated with a legal matter at FedEx Express. Excluding those one-time charges, earnings were $1.16 per diluted share a year ago.

In order to continue the modernization of the company's aircraft fleet, FedEx Express has signed an agreement with The Boeing Company to purchase 27 new 767-300F aircraft, with three arriving in fiscal 2014 and six per year in fiscal 2015-2018.

The 767s were selected as the best choice to begin replacing FedEx Express's MD10 aircraft, some of which are more than 40 years old. The 767s will provide similar capacity as the MD10s, with improved reliability, an approximate 30% increase in fuel efficiency and a minimum of a 20% reduction in unit operating costs.

FedEx Express is also delaying the delivery of 11 777F aircraft, two of which will be deferred from fiscal 2013, five from fiscal 2014 and one per year in fiscal 2015-2018, to better balance air network capacity to demand. As a result of these deferrals, FedEx Express will place into service four 777s in fiscal 2013 and two in fiscal 2014. The company is also exercising two 777 options for aircraft to be delivered at the end of the delivery schedule.

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