UPS SEES STEADY FIRST-QUARTER RESULTS

UPS SEES STEADY FIRST-QUARTER RESULTS    United Parcel Service, the Atlanta-based express giant, reported first-quarter net income of $563 million, down 3.3 percent, a better-than-expected quarterly performance.
   The net results for the quarter ended March 31 excluded a $26-million effect of accounting a new account standard in the first quarter of 2001.
   Revenue rose 1.9 percent to $7.58 billion, while operating profit rose 0.3 percent to $947 million. The net income of 50 cents per share exceeded the company's expectations of 40 to 47 cents per share announced at the end of 2001.
   'We were able to show strong growth in our international export volume and supply chain businesses as well as stable operating income, even with tough economic conditions and fewer working days,' said Scott Davis, UPS chief financial officer.
   International package volume improved slightly, led by Asia and Europe. Average daily volume in Asia improved 11 percent and Europe was up 13 percent. UPS opened an intra-Asian hub in the Philippines as the quarter ended. The new hub opened one year after the launch of UPS direct flights between China and the United States.
   Within the United States, premium air products were down 1.1 percent, but outpaced the market. U.S. ground volumes slipped 1.6 percent and consolidated average daily volume was off 1.3 percent to 1.3 million packages per day.
   Revenue at the UPS Logistics unit increased 53 percent, with 18 percent from organic growth and the balance through acquisitions, including the new UNI-DATA subsidiary acquired in Germany in August.
   UPS anticipates second-quarter earnings to be in the 50- to 55-cents-per-share range, depending on the economy and status of contract negotiations with the Teamsters.
   UPS said, 'negotiations with the union are moving forward, with talks underway this week.'
   The company also said it has filed a secondary shelf registration statement with the U.S. Securities and Exchange Commission related to the possible sale of up to 30 million shares of UPS Class B common stock by two affiliates.
   'In the event UPS is added to the stock index, such as the S&P 500, these shares could be sold to index funds that hold shares of companies included in this index, UPS said, adding that no such step was imminent.