Fedex posts profit, reaffirms outlook

* Reaffirms FY 2009 earnings per share view $3.50 to $4.75

* Says elimination of variable compensation payouts

* Q2 revenue rose 1 percent to $9.54 billion

* Says hiring freeze

* Says volume-related reductions in labor hours and line-haul expenses

* Says discretionary spending cuts

* Says personnel reductions at FEDEX (FDX.NY)reight and Fedex office

* Says 20 pct reduction for Fedex Corp CEO Frederick Smith

* Says now implementing number of additional cost reduction initiatives to

mitigate effects of deteriorating business conditions

* Says has already taken actions to reduce over $1 billion of expenses for all

of fiscal 2009

* Says elimination of calendar 2009 merit-based salary increases for U.S.

salaried exempt personnel

* Says reaffirms earnings estimate of $3.50 to $4.75 per diluted share for

fiscal 2009

* Says 7.5-10.0 pct salary reduction for other senior executives

* Says cost reductions include hiring freeze

* Says earnings estimate for the second half of fiscal 2009 is $0.69 to $1.94

per share

* Says Fedex Services segment expects continued deterioration in the core Fedex

office business

* Says capital spending is now expected to be $2.4 billion for fiscal 2009

* Says cost reductions include personnel reductions at Fedex freight and Fedex

office

* Says suspension of 401(k) company matching contributions for a minimum of one

year, effective February 1, 2009

* Reuters Estimates Q2 earnings per share view $1.58, revenue view $9,781.45

million

* Reuters Estimates FY 2009 earnings per share view $4.13

* Says 5.0% salary reduction for remaining U.S. salaried exempt personnel

* Says Fedex Services segment announced staffing reductions, location closures

* Says economic conditions will remain very difficult through calendar 2009.