UPS Lowers Earnings Forecast for 3rd Quarter
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United Parcel Service Inc., the largest package-delivery company, reduced its third-quarter earnings forecast because shipments fell more than 10% the week of the terrorist attacks and have yet to recover.
The company expects to earn 45 to 48 cents a share, lower than the average estimate of 52 cents from analysts. The attacks cost $130 million in lost sales and expenses and prompted customers to scale back on shipping, Vice President Kurt Kuehn said.
UPS shares rose $2.26, or 4.6%, to $51.98 on the NYSE, mainly because “some people may have thought there would be a larger impact” from the attacks, said Morgan Keegan analyst Arthur Hatfield, who has a “market perform” rating on UPS.
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