UPS, FedEx Warn of Slowing Volume

United Parcel Service Inc. and FedEx Corp. warned that holiday shipping volume had eased with the slowing U.S. economy. UPS, the world’s largest package delivery company, said earnings in its fiscal fourth quarter will miss analysts’ estimates because shipments in the first two weeks of December were unchanged from a year ago, on top of slowing volume increases in October and November. The Atlanta-based company expects to meet earnings goals for 2001, however, “barring further economic slowing.” It anticipates earnings of 60 cents to 62 cents in its latest quarter, versus the 64 cents analysts expected. FedEx, the second-largest package shipping firm, said it now expects lower earnings for fiscal 2001, but said profit will be better than forecast for its fiscal second quarter that ended in November. UPS shares fell $3.94 to close at $58.69, and shares of Memphis, Tenn.-based FedEx fell $4.31 to close at $41.97, both on the New York Stock Exchange.