UPS 1st-quarter profit rises 10 percent, beating forecasts

United Parcel Service Inc. said Thursday that first-quarter profit rose 10 percent to $1.13 billion, helped by an increase in both ground shipments and next-day air deliveries in the United States.

The company beat Wall Street forecasts for profit, but revenue was lower than expected.

Executives disclosed that UPS could be required to take a charge of up to $3.8 billion if the government lets a Teamsters pension fund cut benefits to UPS retirees.

UPS is often considered a bellwether of the economy both in the U.S. and globally because of the number of shipments it handles between businesses and from businesses to consumers. The company's e-commerce business has...