NEW YORK — FedEx, the nation's second largest package shipper, lost more money in the last quarter, as consumers and businesses downsized shipments and the company took over $1 billion in one-time charges.

Memphis, Tenn.-based FedEx said Wednesday it expects a rough ride for some time.

"The operating environment for our first two quarters in fiscal 2010 is expected to be extremely difficult," executive vice president and chief financial officer Alan Graf Jr. said.

In April, the company's Atlanta-based rival UPS said its first-quarter profit plunged 55 percent. It offered a disappointing second-quarter outlook.

FedEx lost $876 million, or $2.82 per share in the three month period ending in May. The company lost $241 million, or 78 cents per share, a year ago. Excluding one-time charges, earnings were 64 cents per share in the recent quarter.

The company took a $900 million write-down related to the 2004 purchase of Kinko's — now known as FedEx Office — and $90 million in charges related to a September 2006 acquisition of a trucking company and its affiliates. It also took charges for employee severance and facility cutbacks.

Revenue in the fourth-quarter fell 20 percent to $7.85 billion.

FedEx predicted earnings in the current quarter will drop sharply from a year ago. The company sees a profit of 30 cents to 45 cents per share for the period ending in August, compared with earnings of $1.23 per share a year ago.

Graf said sluggish manufacturing and another run-up in fuel prices will hold back earnings. On Tuesday, the government reported industrial production fell by 1.1 percent in May — for the seventh straight monthly drop. Oil prices have doubled since March.

FedEx and UPS are viewed as bellwethers of the economy because they transport a wide variety of goods from factories to retailers and consumers.

Fourth-quarter revenue for the FedEx Express unit dropped 25 percent. as the unit moved fewer packages and fuel prices rose. In the freight segment, revenue fell 28 percent. The company's ground segment did relatively well, with revenue down only about 1 percent from a year ago.