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FedEx Corp. said Thursday its fiscal second-quarter earnings rose 3 percent, narrowly topping Wall Street's expectations, but it announced further cost cuts as demand continues to slump.

Chief Executive Frederick W. Smith said the company's earnings are "increasingly being challenged by some of the worst economic conditions in the company's 35-year operating history."

The Memphis, Tenn.-based company earned $493 million, or $1.58 per share, compared with a year-ago profit of $479 million, or $1.54 per share. Revenue rose 1 percent to $9.54 billion.

Analysts polled by Thomson Reuters predicted a profit of $1.57 per share on revenue of $9.87 billion.

The package delivery company said it will implement pay cuts for senior executives and a 1-year freeze on 401(k) contributions. On Jan. 1, CEO Smith will take a 20 percent pay cut, and other top brass will take a reduction in pay between 7.5 percent and 10 percent.

FedEx (nyse: FDX - news - people ) will also implement a 5 percent pay cut for all remaining U.S. "salaried exempt" personnel.

Combined, the company expects these measures to save $200 million through the remainder of the fiscal year ending in May and $600 million in the next fiscal year.

Most advertising slots for the 2009 Super Bowl that weren't sold in September still haven't moved, a change from earlier in the year when NBC announced the air time had been selling faster than usual.

Super Bowl regulars like FedEx Corp. (nyse: FDX - news - people ), Garmin Ltd. (nasdaq: GRMN - news - people ), Salesgenie.com and General Motors Corp. (nyse: GM - news - people ) are sitting out this year's football championship, to be held Feb. 1 in Tampa, Fla. But NBC says it is negotiating with other potential advertisers for the eight 30-second advertising spots that remain open.

"We're hearing from a lot of companies," said Brian Walker, senior director of communications at NBC Sports in New York. "This is a time to show strength and confidence in their brands in a challenging economy,"

Walker said NBC had a total of around 67 spots for Super Bowl XLIII and has sold about 59, or 88 percent. In September, NBC said 85 percent of the 30-second spots had sold for about $3 million each. Typically, 60 percent of Super Bowl slots sell by then.

The National Football League championship is considered the premier advertising event of the year, and it often heralds new trends in advertising sales and styles.

Walker said NBC could technically sell ad spots up to the last minute before the event. He declined to say whether NBC - a unit of NBC Universal, which is owned by General Electric Co. (nyse: GE - news - people ) - is facing pressure from companies to discount rates.

GM, which bought airtime during the Super Bowl for about a decade, is cutting costs as part of a restructuring plan that was in place even before the automaker requested federal help.