UPS lowers Q2 outlook

Global – UPS has lowered its forecast for the second quarter as it grapples with a slowing US economy and high fuel costs.

UPS said earnings per diluted share for the second quarter is expected to slip to US$0.83 - US$0.88 from a range of US$0.97 - US$1.04 projected earlier.

The logistics company said slow US economic growth is negatively impacting package volume into the US, hurting results in its international business unit.

Record-high fuel costs have also been blamed for lower-than-expected US package volume and a contraction in the use of premium air products.

Its supply chain and freight segment however, remains healthy, the company said.

UPS will release its second quarter results on 22 July.