UPS is sticking with its earnings forecast for the full year despite what it warns will be "a bumpy ride" for the global economy.
The world's largest package delivery company said Thursday that it expects adjusted earnings of $4.15 to $4.40 per share in 2011, implying growth of 17 to 24 percent from 2010.
The upper end of the range is above Wall Street's expectations for earnings of $4.25 a share, according to a survey of analysts by FactSet.
Speaking at the company's investor conference in Louisville, Ky., Chief Financial Officer Kurt Kuehn said that UPS has seen "momentum in the U.S. basically stall." Still, the company said it had already projected a slowing growth rate in the U.S. and sees the "slow but stable" pace continuing.
UPS is also seeing growth slow in Asia ? especially the airfreight segment. Demand in the unit has been growing rapidly since the recession on strong export growth from Asia. More manufacturers are also keeping inventory low and need quicker deliveries.
It may be 2013 or beyond before growth becomes strong again, Kuehn said. He expects 2012 be "another under-trend year."
"The next three years might be a little bumpy," Kuehn said.
United Parcel Service Inc. and rival FedEx Corp. are gauges of broader economic health because consumers and businesses rely on the two behemoths to move everything from overnight documents to car parts and refrigerators.
Shares of Atlanta-based UPS fell 43 cents to $65.73 in morning trading after trading as high as $67.49 earlier in the session.
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