EMC’s Business Finance blog

United Parcel Service Inc., the world’s largest package-delivery company, lowered its second- quarter profit forecast because of rising fuel costs and a slowing U.S. economy.

Earnings will be 83 to 88 cents a share, down from the range of 97 cents to $1.04 projected on April 23, Atlanta-based UPS said today in a statement. The average estimate of 16 analysts surveyed by Bloomberg was 98 cents.

UPS said the “anemic” economy is damping demand for air shipments, its most profitable offering, and for U.S.-bound international packages. Jet-fuel costs have jumped 30 percent this quarter, and recouping those expenses with surcharges has a two-month lag time, Chief Financial Officer Kurt Kuehn said.