UPS trims earnings forecast as international revenues fall

   UPS said it had profit of $1.1 billion in the second quarter ending June 30, 2.2 percent more than in the same 2011 period.
   Revenue was $13.3 billion for the second quarter, up 1.2 percent over the same 2011 period.
   The company said its U.S. domestic package revenue was $8 billion in the second quarter, up 4.1 percent from the same 2011 period, while international package revenue was $3 billion, down 4 percent and supply chain and freight revenue was $2.3 billion, down 1.6 percent.
   “Increasing uncertainty in the United States, continuing weakness in Asia exports and the debt crisis in Europe are impacting projections of economic expansion,” said Scott Davis, UPS chairman and CEO. “Throughout its history, UPS has maintained its strength in all economic cycles and we are making the adjustments necessary to respond to today’s challenging conditions.”
   Kurt Kuehn, UPS’s chief financial officer said “As we look toward the second half of the year, customers are more concerned as greater uncertainty exists. Additionally, economic growth expectations have come down. Consequently, we are reducing our guidance for 2012 diluted earnings per share to a range of $4.50 to $4.70, an increase of 3 percent to 8 percent over 2011 adjusted results.”
   In April UPS had projected it would earn $4.75 to $5.00 per share, and increase of 9 percent to 15 percent over 2011 adjusted results.