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FedEx says quarterly profit up 7 percent

MEMPHIS, Tenn. FedEx (FDX) says quarterly profit is up 7 percent despite a dip in revenue in its FedEx Express unit, and it will raise prices in January.

FedEx Corp. said Wednesday that it earned $489 million, or $1.53 per share, in the quarter ended Aug. 31. That's up from $1.45 per share a year ago, and beat analysts' forecast of $1.50 per share.

The company says FedEx Express will raise U.S. rates by an average of 3.9 percent on Jan. 6.

FedEx is still struggling with tepid global economic growth and with a decline in international priority deliveries as customers shift to less-expensive shipping options. The company says its ground business is still strongly profitable and it's cutting costs in the FedEx Express unit.

Its shares rose 2.7 percent to $113.65 in premarket trading.