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OT: UPS raises outlook for year despite mixed economy

UPS raises forecast for year despite slow pace of recovery in US, Europe; 2nd-qtr profit soars

Thursday July 22, 2010, 8:30 am
http://finance.yahoo.com/news/UPS-raises-outlook-for-year-apf-1158274818.html?x=0

NEW YORK (AP) -- UPS is confident it can overcome a slow economic recovery in the U.S. and Europe and is once again raising its outlook for the year.

The Atlanta company said Thursday it expects adjusted earnings of $3.35 to $3.47 per share, up from a previous prediction of $3.05 to $3.30. Analysts' currently expect $3.27.

UPS Inc., the world's largest shipping company, also said Thursday its earnings in the April to June period jumped to $845 million, or 84 cents per share, compared with 445 million, or 44 cents per share a year ago. Revenue rose 13 percent to $12.2 billion.

Average daily package volume rose 1 percent.

Thomson Reuters says analysts forecast 77 cents per share on $11.98 billion in revenue.

"UPS fired on all cylinders in the second quarter even in the face of a mixed global economic environment," said CEO Scott Davis.

The company said its U.S. reorganization is producing better-than-expected results and its international segment is growing at a fast clip. That should allow UPS to report strong growth "despite the anticipated slow pace of the U.S. recovery and a cautious outlook for Europe," said finance chief Kurt Kuehn in a statement.

For the quarter that ended in May, UPS' smaller rival FedEx earned $419 million, or $1.33 per share. It said last month that economists are being too pessimistic about the pace of global recovery.