UPS PROJECTS FIRST-QUARTER EARNINGS DIP DUE TO WEAKENING ECONOMY

UPS PROJECTS FIRST-QUARTER EARNINGS DIP DUE TO WEAKENING ECONOMY

UPS PROJECTS FIRST-QUARTER EARNINGS DIP DUE TO WEAKENING ECONOMY

   United Parcel Service, the Atlanta-based express shipping giant, said Thursday it expects lower first quarter earnings, due to the slowing economy.

   UPS said its earnings will be in the range of 49 cents to 51 cents a share, compared to 56 cents per share during the year-earlier period.

   The company added that, if current economic trends persist, second-quarter results will be in the range of 55 to 60 cents per share, compared to 60 cents per share for the second quarter of 2000.

   'We anticipated the first quarter would be difficult and thought we could achieve earnings per share slightly more than last year. The economy has proven to be even more challenging and therefore we do not believe we will attain that target,' said Scott Davis, UPS chief financial officer.

   UPS's announcement comes one day after FedEx reported a 4-percent drop in third-quarter net income. UPS's Memphis-based competitor also blamed the worsening economic conditions.

   While UPS's volumes increased for all products in the quarter, domestic growth slowed over the last two months to about 1 percent, the company said. International export package volume has remained strong, at more than 15 percent.

   'Our logistics and international businesses have continued to show strong growth,' Davis said