UPS sees first-quarter earnings at upper end of range, better 2002
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Posted 4:15PM on Tuesday 26th February 2002 ( 23 years ago )
ATLANTA - United Parcel Service Inc. said Tuesday it expects first-quarter earnings to be at the high end of its earlier forecasts, citing its successful effort to curb expenses. <br>
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Its shares rose more than 2 percent. <br>
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Last month, UPS said it expects to earn 40 cents to 47 cents per share in the first quarter. The consensus forecast of analysts surveyed by Thomson Financial/First Call was for earnings of 46 cents per share. <br>
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"The quarter is unfolding fairly well," UPS chief financial officer Scott Davis said Tuesday at a conference with analysts in Louisville, Ky. Volume growth is 1 percent to 2 percent lower than in 2001, but profit margins have held up and the company has tightened spending, he said. <br>
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For the second quarter, UPS expects to earn 50 cents to 55 cents per share. UPS earned 55 cents per share in the same quarter of 2001. <br>
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The consensus forecast of analysts is for earnings of 55 cents a share. <br>
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UPS also said it anticipates improved revenues and earnings in the second part of 2002, "assuming a timely completion of labor negotiations with the Teamsters union and a strengthening economy." <br>
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The Teamsters' five-year contract with UPS expires July 31. <br>
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The company said the profitability of its international business should improve more than 50 percent and that its nonpackage business would contribute about $100 million. <br>
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UPS shares rose $1.21 to $58.31 in late trading on the New York Stock Exchange. <br>
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