CORRECTED-UPDATE 3-FedEx profit up, but cuts costs
* Q2 EPS of $1.58 meets expectations
* Company foresees further economic hardship ahead
* CEO takes pay cut, FedEx suspends 401(k) contributions
* Cost cutting measures to save $800 mln by end of FY2010
* Shares rise 1.5 pct
(Recasts first sentence, adds analyst comments, other background, updates stock action)
By Nick Carey
DETROIT (Reuters) - Package delivery giant FedEx Corp (FDX.N: Quote, Profile, Research) reported a higher profit for its fiscal second quarter, meeting expectations, but announced a 20 percent pay cut for CEO Fred Smith and said it was suspending retirement plan contributions as the U.S. economy's outlook looks bleak.
FedEx said it has a hiring freeze in place and has cut staff levels at its FedEx Freight and FedEx Office units. Continued...
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