UPS cuts FY08 Outlook

Much has been made by Dow theorists about the bullish confirmation of the dow transport index and the dow industrials in recent weeks. However, the outlook for major transportation companies continues to look weak. Back in September of last year both Federal Express and Knight Transportation issued profit warnings. Now it's UPS turn, from marketwatch.com:

United Parcel 1st Quarter Net Up 7.5% To $906M, Cuts 2008 EPS View

United Parcel Service Inc.'s (UPS) first-quarter net income increased 7.5% to $906 million, or 87 cents a share, from $843 million, or 78 cents a share, a year ago. Excluding an impairment charge related to aging jet aircraft, adjusted earnings for the year-ago period were 96 cents a share. The Atlanta package delivery company said revenue for the period increased 6.5% to $12.68 billion from $11.91 billion a year earlier. On average, analysts polled by Thomson Reuters expected earnings of 87 cents a share on revenue of $12.31 billion. The company expects second-quarter net income of 97 cents to $1.04 a share. UPS also cut its 2008 earnings forecast to $3.90 to $4.20 a share from $4.30 to $4.50 a share.