UPS Boosts 2010 Forecast as Profit Beats Estimates (Update1)
By Mary Jane Credeur
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, Atlanta-based UPS said today in a statement that gave partial results. Analysts estimated 57 cents, the average of 19 projections compiled by Bloomberg. The shares rose in New York.
International shipments jumped 9 percent in the quarter, UPS said. An increase in domestic volumes of less than 1 percent marked the first advance in more than two years as businesses and consumers began sending more packages.
“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 $2.68, or 4.1 percent, to $68.13 at 4:57 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 range of $2.70 to $3.05 provided in February. The company didn’t give full quarterly results, and said that information would be released on April 27.
UPS benefited from increases in pricing, Chief Financial Officer Kurt Kuehn said in the statement.
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