UPS Lowers 2Q Earnings Forecast

Slow Economic Growth, High Fuel Costs Cited
UPS Inc.

UPS Inc. downgraded its second-quarter earnings forecast to 83 to 88 cents per share, from an earlier 97 cents to $1.04 forecast, citing slow U.S. economic growth and soaring fuel costs.

The two factors have resulted in lower-than-expected U.S. package volume and an accelerating contraction in the use of premium air products, UPS said late Monday.

In addition, the “anemic U.S. economy is negatively impacting package volume into the United States, affecting results for the International segment,” UPS said.

Performance in the Supply Chain & Freight segment is continuing to exceed expectations, the company said.

UPS, which will release its second-quarter results on July 22, is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.