United Parcel Service reported higher quarterly results, but cut its 2012 outlook, citing uncertain global economic conditions.
UPS said net earnings rose to USD$1.12 billion in the second quarter, from $1.092 billion a year earlier.
Revenue rose to USD$13.35 billion from USD$13.19 billion a year ago.
The company lowered its full-year outlook to USD$4.50 to USD$4.70 a share, from its prior earnings estimate of USD$4.75 to USD$5.00 per share, and said customers are more concerned about the economy in the second half of the year.
"Increasing uncertainty in the United States, continuing weakness in Asia exports and the debt crisis in Europe are impacting projections of economic expansion," Scott Davis, UPS chief executive, said in a statement.
The revised full-year outlook would represent an increase of between 3 percent and 8 percent over 2011 adjusted results.
Atlanta-based UPS expects to close on its biggest takeover in its 105-year history in the fourth quarter -- the purchase of Dutch company TNT Express.
The company's exposure to problems in Europe will increase with its purchase of TNT Express, which will make UPS the market leader in Europe and broaden its reach in Asian and Latin American markets.
EU antitrust regulators last week said they were concerned about the combined company's high market share and broadened their investigation of UPS's bid.
UPS and No. 2 parcel delivery company FedEx are viewed as economic bellwethers because of the volume of goods they handle. The value of packages that UPS moves in its trucks and planes is equivalent to about 6 percent of US gross domestic product and 2 percent of global GDP.
FedEx said in June it was stepping up cost-cutting measures, such as upgrading its fleet to more fuel-efficient aircraft, to boost profit margins while a sluggish global economy curbs shipping volume and demand for premium-priced delivery options.