ATLANTA (AP) -- Customers are using UPS shipping services within the U.S. less amid a slumping U.S. economy and soaring fuel prices. The company's international business was affected as imports into the country declined in the second quarter.

As it reported a nearly 21 percent profit decline in the April-June period and lowered its outlook for the year, United Parcel Service Inc. said Tuesday it was working to cut costs.

"Brace yourselves for more tough times," Edward Jones analyst Dan Ortwerth said.

Even so, Ortwerth said the Atlanta-based company has the financial wherewithal to steer through the rough patch. UPS shares rose more than 4 percent in Tuesday trading.

"There is far too much long-term competitive pressure as the economy globalizes to meet customer needs and to meet them rapidly, and businesses cannot afford to walk away from the best services available to them," he said.

UPS, hit by an average daily volume decline in the U.S. and soaring fuel costs, said its profit was $873 million, or 85 cents a share, in the second quarter, compared to a profit of $1.10 billion, or $1.04 a share, for the same period a year ago. Revenue grew to $13 billion from $12.2 billion.

"We're feeling the impact of higher energy costs throughout the company," Chief Executive Scott Davis

Health insurers battered by rising costs and employer benefits cuts caught a break Tuesday when UnitedHealth Group beat Wall Street expecations and saw its stock jump nearly 8 percent, even though it reported a sharp drop in second-quarter profit.

Shares of the Minneapolis-based managed-care provider rose $2.38, or 10 percent, to $26.21 from Monday's closing price of $23.83, as the prices of other publicly traded insurers like Aetna Inc. and WellPoint Inc. also jumped several percentage points.

"The worst case didn't happen to managed care, and that was enough for people to jump back in," said analyst Les Funtleyder of Miller Tabak & Co. "The assumption is the worst is over."

UnitedHealth's net income fell to $337 million, or 27 cents per share, from $1.23 billion, or 89 cents per share, a year ago. Hefty lawsuit settlements and thinner margins in its health care services business contributed to the profit drop.

Tough economic conditions, including a competitive industry that's seeing fewer employers offering insurance, were among factors cited by company officials in a Tuesday morning conference call with analysts.

The company's UnitedHealthcare segment saw its second-quarter membership decrease less than 1 percent, partially due to a drop of 95,000 people in risk-based programs where the company provides the insurance.

"I think affordability is absolutely an issue that employers are very focused on," UnitedHealthcare

SAN FRANCISCO (AP) -- Yahoo Inc.'s profit slipped again in the second quarter, a recurring theme that has frustrated shareholders and raised doubts about the Internet company's future.

While the results released Tuesday missed analyst expectations, the performance wasn't as bad as many investors feared after Internet search and advertising leader Google Inc. disappointed Wall Street with its second-quarter earnings last week.

What's more, Yahoo management maintained its revenue outlook for the remainder of 2008. The confident stance eased concerns about Yahoo's financial erosion worsening amid the dreary economy in the United States and parts of Europe.

Yahoo shares rebounded 52 cents in extended trading after falling 27 cents to finish Tuesday's regular session at $21.40.

"They did better than the worst expectations," said Canaccord Adams analyst Colin Gillis. "It was a 'rice-cracker' quarter. It didn't taste great, but it wasn't totally horrible either."

The Sunnyvale, Calif.-based company earned $131 million, or 9 cents per share, from April through June. That was down 18 percent from $161 million, or 11 cents per share, at the same time last year.

Analysts had projected earnings of 11 cents per share in the most recent quarter, according to Thomson