UPDATE 1-UPS sees strong Asia growth in Q2, to add aircraft

* Says euro crisis has no major impact on its business so far

* Volcanic ash cloud does not pose any issue to its business

* Plans to add 2 aircraft in Hong Kong, 11 in Shanghai
(Adds executive quotes)

By Fion Li

SHENZHEN, May 18 (BestGrowthStock) – United Parcel Service (UPS.N: ),
the world’s largest package delivery service, said on Tuesday it
expected strong growth in the second quarter in its Asia business
amid an improving regional economy.

UPS’s Asia volume grew more than 20 percent in the first
quarter with the fastest growth from the region’s small- and
medium-sized enterprises.

The volume growth in Asia remained “very strong”, said Derek
Woodward, UPS Asia Pacific President. But he declined to give
further details.

Atlanta-based UPS reported better-than-expected first-quarter
earnings last month and the company was optimistic about the
market’s outlook this year. [ID:nN27244676]

Woodward was in Shenzhen for the opening of UPS’ Asia Pacific
hub at the city’s Baoan International Airport. The facilities
with an investment of $180 million replaces UPS’ hub in Clark, in
the Philippines.

“China is our No.1 international priority,” Woodward said.
“The new hub shall help to facilitate business in Asia.”

Shenzhen, which is UPS’ second hub in China after Shanghai,
will focus on intra-Asia traffic, which is boosted by a bilateral
trade agreement between China and ASEAN that came into effect
this year.

The volcanic ash cloud hampering air traffic in Europe did
not present any issues for its business, International President
Daniel Brutto told reporters.

Brutto also said the Europe debt crisis and a recent fall in
the euro had no major impact on UPS’ business so far and the
crisis was isolated in Greece, Portugal, Spain and Ireland.

“I can’t predict the future but at this stage we are still
very confident in our growth in Asia to Europe,” he said.

UPS plans to add two aircraft in Hong Kong and 11 in Shanghai
from June 1 to tap growth in China. It currently operates 23
aircraft within the Asia Pacific region.

Penny Stocks

(Writing by Alison Leung; Editing by Jacqueline Wong)

UPDATE 1-UPS sees strong Asia growth in Q2, to add aircraft