New York (CNN Business) FedEx has been trying to turn its business around after a difficult year, but its second quarter results show that it's not nearly there yet.

On Tuesday, the company reported net income of $660 million for the three months ending November 30, down nearly 40% from the same period a year earlier. Revenue also fell to $17.3 billion from $17.8 billion over that time.

FedEx FDX Shares indropped nearly 7% in after-hours trading Tuesday following the earnings release.

A significant drop in operating income in FedEx's Ground division — down 42% to $342 million, from $590 million in the same period last year — contributed to the quarter's disappointing results.

"We are at the bottom," CFO of FedEx Alan Graf said in a call with Wall Street analysts Tuesday. "Our adjusted operating profit decline year-over-year is horrific ... It's going to improve in Q3 and it's going to improve substantially in Q4, versus the prior year ... We're going to come up off the mat and improve through the rest of this year and into the next."