UPS Says Profit Will Fall Short of Forecast

United Parcel Service Inc. said fourth-quarter profit would fall short of its forecast because U.S. shipments slowed in 2004’s final week and Midwestern storms during the holiday rush raised costs.

Profit excluding a tax gain was 75 cents or 76 cents a share, a drop from its forecast on that basis of 83 cents to 87 cents, the Atlanta-based company said in preliminary results. Net income was 84 cents to 87 cents a share, UPS said. Net income a year earlier was $856 million, or 75 cents.

UPS shares fell $2.62 to $80.68 after exchanges closed. The shares had declined 32 cents to $83.30 on the New York Stock Exchange.

Meanwhile, rival FedEx Corp. reaffirmed its previous third-quarter earnings forecast of 90 cents to $1 a share. The Memphis, Tenn.-based company said it “experienced a strong holiday season.”