REGHI

April 14 (Bloomberg) -- United Parcel Service Inc., the world’s largest package-delivery company, boosted its full-year forecast after rising demand for overseas shipments helped produce a first-quarter profit that beat analysts’ estimates.

Earnings excluding some items were 71 cents a share, UPS said today in a statement that gave partial results. Analysts expected 57 cents, the average of 19 projections compiled by Bloomberg. The shares rose in late trading.

International shipments jumped 9 percent while volume within countries outside the U.S. surged 24 percent, Atlanta- based UPS said, a signal that economic expansion abroad is outpacing growth in the U.S. Domestic deliveries rose less than 1 percent for the first advance in more than two years.

“A big part of the beat is from international, and that’s a sign that the worldwide economy is picking up,” said Helane Becker, an analyst at Jesup & Lamont Securities Corp. in New York. She recommends buying the shares. “That means Asia to India, India to Brazil, within Europe. Some of that is going to the U.S., but most of it is within and to other regions.”

UPS jumped $2.91, or 4.4 percent, to $68.36 at 6:09 p.m. in New York. The results were announced after regular New York Stock Exchange composite trading.

Earnings for all of 2010 will be in a range of $3.05 to $3.30 a share, UPS said, exceeding the forecast of $2.70 to $3.05 the company provided in February. Full quarterly results will be released on April 27, UPS said.

Revenue Rose 7%

Quarterly revenue rose 7 percent, UPS said. That exceeded the average estimate of a 6 percent increase among 15 analysts.

UPS benefited from increases in pricing, Chief Financial Officer Kurt Kuehn said in the statement, and revenue rose for the supply-chain and freight units as well as in package delivery.

UPS’s results built on last month’s earnings report by FedEx Corp., which said profit for the three months ended Feb. 28 more than doubled as businesses restocking inventory drove demand for air packages in Asia and Europe. FedEx operates the world’s largest cargo airline.

“Given what FedEx earned, exceeding analyst estimates in February, I’m not surprised,” said David Campbell, a Thompson Davis & Co. analyst in Richmond, Virginia, who recommends buying UPS shares. “It’s not just packages, but also international freight revenue exceeding expectations and supply-chain solutions, including freight forwarding.”

UPS’s first-quarter earnings were reduced by charges of $175 million, or 18 cents a share, related to a reorganization of the U.S. package division, a loss on the sale of a supply- chain unit in Germany, and a tax item for a German subsidiary, the company said.

To contact the reporter on this story: Mary Jane Credeur in Atlanta at [email protected]

weatherman

just remember that these thugs moved husbands, wives, and children to anchorage, alaska and will now be furloughing them up there. no move back either.

young families with no income soon and no move back.

this is the kind of scum that runs ups.

UPSFO4LIFE

UPS could announce a 50 billion dollar profit and it would not change a thing. Remember, this is not about money, it about showing who is in control.

JustUnderPar

Management at all levels took pay freezes. Drivers furloughed. Pilots (soon to be) furloughed.

Management people defend the CEO's actions by saying its good for the company. Times are tough. Share the pain. You are lucky to have a job.......

The Board of Directors. Pay raises EVERY YEAR. Nice!

Guess those guys (and two gals) really share the pain!

flynwmn

Should i be concerned about using UPS if a package i paid to have delivered by the 14th only made it 200 miles in 18 hours and is still 80 miles short of it's destination?

frozenboxhauler

Not at all, demand a refund.
fbh

flynwmn

thanks
filler

L'il J.Seinfeld

Check out the domestic reserves tafb. It's low. I sure hope the OT/JA ban is working in ANC because UPS is learning it can operate the domestic side with fewer pilots than before even with the ban. I fear that we are holding our collective breath and stomping our feet like a spoiled child.

UPS is a faceless corporation without a conscience. Shame on them for stranding people in ANC. As far as the furlough goes though, can anyone blame them? You cant have 150 guys sitting at home making 110-240k/year and not working for a year and expect it to continue.

It sucks and we all are taking a bite of the crap sandwich but the furloughees are getting the real shaft.

Swedish Blender

People need to check their TAFB. I had a couple trips last week but was only credited with one in my TAFB. I was flying with a line holder and we broke. Skeds recoded it for late arrival pay and it never showed in my TAFB for some reason.

weatherman

tafb is not nearly as low as it used to be. being on reserve used to be a great deal because you never worked. some pilots would go months and months without a trip.

i guess we just differ on our opinion, but i think it's obvious how much the ja/ot ban is affecting the operation.

i don't see this working out with less pilots, and i think it a safe bet to make that ups cannot run the airline over peak with the ban in place.

i do agree with you that it's not the best business model for them to have 100+ pilots on the sidelines at full pay, but the solution for this mess that they have themselves in is to fire the dumbass manager responsible for not purchasing more sims and other training equipment that could accelerate getting these pilots back into the system........ not furlough pilots.