FedEx outlook improves

FedEx Corp. raised its earnings outlook Monday, citing more business for its international, ground delivery and less-than-truckload services.

The Memphis, Tenn.-based package delivery company said it expected per-share earnings of $1 to $1.10 for the quarter ending Aug. 31, compared with previous estimates of 90 cents to $1, and $4.40 to $4.60 for the year, compared with $4.20 to $4.40.

The company’s stock rose more than 2 percent on the news. FedEx officials said the increase in business was related to a “pickup in the economy.”

Retail

Toy store still evaluating possible sale, CEO says

Toys “R” Us Inc. swung to a profit in the second quarter, boosted by a reversal of $200 million in income tax reserves, but overall sales fell 3.9 percent and its U.S. toy business posted a big operating loss.

Chairman and Chief Executive John Eyler said Monday that the company, which announced earlier this month that it was considering selling its worldwide toy business, did not expect to have a decision on its next step for “a number of months.”

“The past few months have been a time of rigorous re-evaluation for Toys “R” Us,” he said during a conference call with analysts. “We move forward now with renewed focus on our two distinct businesses, Babies ‘R’ Us and the global toy business. And all of us realize the next 120 days are key for the global toy business.”

Toys “R” Us will most likely wait until after the holiday season to set its future course — including any store closings, analysts said.

Labor

US Airways talks fizzle

Talks between US Airways Group Inc. and the union representing pilots have broken down, the Air Line Pilots Assn. said Monday.

The announcement came days after union leaders said a new labor agreement could be struck soon.

“We are disappointed that the company’s latest proposal failed to respond in any substantive way to our proposal of Aug. 21,” Jack Stephan, a spokesman for the US Airways pilots, said in a statement. The talks broke down Sunday, the statement said.

“We negotiated throughout the weekend and have provided (the pilots’ union) with our response to their proposal,” US Airways said in a statement. The statement said the air carrier expected to hear from the pilots.

US Airways has said that new labor deals with unions are necessary to avoid a return to bankruptcy court and possible liquidation. The airline has warned that bankruptcy looms if deals are not reached by at least Sept. 30.

Real Estate

Kmart revises sale

Kmart Holding Corp. said Monday that under a final agreement with Home Depot it would sell 18 stores to the home-improvement retailer for $271 million.

Initially, Kmart said it would sell up to 24 stores to Home Depot. Earlier this month, it revised that to a minimum of 13 locations and a maximum of 19.