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UPS Affirms Earnings Forecast

The company says U.S. domestic volume growth is well ahead of expectations for the second quarter.
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UPS

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said U.S. domestic volume growth is well ahead of expectations for the second quarter, and international export volume continued to climb at a double-digit rate.

The company said it continues to expect 2005 net income growth of 16% to 20% over the adjusted $2.90 a share reported for 2004. The company made the comments during a meeting with investors and equity analysts.

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UPS said "momentum in the U.S. domestic business is visible in the early weeks of this quarter." Through the first week of May, the company is well ahead of its 2% guidance for total volume growth.

The company said capital spending in 2006 and 2007 would remain at or below 6% of revenue, at the low end of its historical range. UPS also said it would continue to consider acquisitions if they were in "attractive markets and offer compelling synergies that leverage our strengths."

Shares of UPS were gaining $1.37 to $73 in premarket trading.