Reuters
UPS slashes quarterly view on soaring fuel costs
Monday June 23, 5:04 pm ET
LOS ANGELES (Reuters) - United Parcel Service Inc on Monday warned that its second-quarter earnings would be below expectations due to a sluggish U.S. economy and soaring fuel costs.
The announcement came less than a week after rival package delivery company FedEx Corp issued a weak fiscal 2009 forecast and posted a quarterly loss, also blaming rising fuel prices and an ailing economy.
UPS estimated earnings of 83 cents to 88 cents a share for the quarter, down from a prior view of 97 cents to $1.04 per share.
In a statement, UPS said U.S. package volume had been lower than expected, while demand for higher-priced air delivery services had seen a particular drop.
The company will report results on July 22.
(Reporting by Nichola Groom, editing by Richard Chang)
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