FedEx issues conservative outlook, 4Q income up

NEW YORK (AP) - FedEx is offering a conservative prediction for net income this quarter and the next fiscal year, despite strong fourth-quarter results.

The Memphis, Tenn., company expects to earn 85 cents to $1.05 per share for the quarter ending in August. Analysts are expecting $1.03 per share.

FedEx Corp. sees net income of $4.40 to $5 per share for fiscal 2011. Shares fell 2.8 percent in premarket trading.

In the quarter ended in May, the company earned $419 million, or $1.33 per share. It lost $876 million, or $2.82 per share a year earlier.

Revenue jumped 20 percent to $9.43 billion.

FedEx said international express shipments jumped and its Ground division improved. But its freight unit lost money and employee costs rose.