Package delivery company United Parcel Service Inc. said Thursday that it expects a "solid" holiday shipping season in the coming weeks as the economy stays "steady at these levels."

During a conference call with investors, the Atlanta-based company also acknowledged that it had experienced more challenges than expected integrating Richmond, Virginia-based Overnite Corp., a less-than-truckload company it acquired in 2005, and Menlo Worldwide Forwarding, an air freight company it acquired in 2004.

The comments came as UPS reported better-than-expected third-quarter net income of $1.03 billion, or 96 cents a share, up from $953 million, or 86 cents a share, a year earlier.

As it looks out over the economy, UPS, which is integrated into the supply chains of a broad range of companies, said it is sees continued strength in the retail and manufacturing sectors and weakness in the durable goods, autos and housing industries.

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Copyright Reuters 2006.

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