UPS cuts year forecast on weakness in Asia and Europe; 2nd-qtr net income up 2 per cent

NEW YORK, N.Y. – UPS is lowering its earnings expectations as economic weakness and uncertainty persist around the globe.

The Atlanta company said Tuesday it now expects to earn between $4.50 and $4.70 per share, up 3 to 8 per cent over last year’s adjusted results. The company’s previous forecast was for earnings of $4.75 to $5 per share.

United Parcel Service Inc. says its customers are worried about the global economy weakening in the second half of the year. Their skittishness was also felt in the second quarter, where UPS missed analysts’ expectations for both earnings and revenue.

In the spring quarter, net income rose 2 per cent to $1.12 billion, or $1.15 per share, compared with $1.09 billion, or $1.09 per share, a year earlier.

Revenue rose 1.2 per cent to $13.35 billion.