United Parcel May Miss Profit Forecasts

United Parcel Service Inc. said second-quarter profit may fall short of analysts’ expectations, but earnings for the first quarter will come in at the high end of its earlier forecast.

The largest package-delivery company said the percentage rise in second half may be “in the low teens” if the U.S. economy improves and the company reaches a timely contract agreement with the Teamsters union, Chief Financial Officer Scott Davis said at a meeting with analysts and investors.

Stable prices and better-than-expected cost controls are helping as first-quarter shipment volumes trail year-earlier levels, Davis said.

First-quarter earnings will be at the high end of the company’s forecast last month of 40 to 47 cents a share, Davis said. Analysts were expecting 46 cents, on average, according to Thomson Financial/First Call.

The company expects second-quarter profit of 50 to 55 cents. Analysts had forecast 55 cents.

The Atlanta-based company’s shares rose $1.21 cents at $58.31 on the NYSE.