UPS profit falls on charge, narrows forecast

United Parcel Service driver Scott Kazomek pushes a load of packages away from his delivery his truck at a stop in Woodlawn, Md., Tuesday, Jan. 30, 2007. UPS Inc., the world's largest shipping carrier, said Tuesday its fourth-quarter profit increased 7.5 percent on a 5.6 percent gain in sales. (AP Photo/Chris Gardner)

NEW YORK UPS (UPS) says its third-quarter earnings sank on a huge penalty to withdraw from a pension plan. Without that charge, net income fell slightly but matched expectations on Wall Street.

The world's largest package delivery company is also narrowing its earnings forecast for the full year.

UPS says it earned $469 million, or 48 cents per share, in the most recent quarter, compared with $1.07 billion, or $1.09 per share, a year earlier. Without the huge charge, it earned $1.03 billion, or $1.06 per share.

Revenue fell less than 1 percent to $13.07 billion.

FactSet says analysts expected a profit of $1.06 per share on revenue of $13.32 billion.

United Parcel Service Inc. says improving international operating profit countered declines in the U.S. package and freight segments.