UPDATE 4-UPS profit down, gives low outlook--shares fall

* Q1 EPS 40 cents, ex-items 52 cents, consensus 56 cents

* Sees Q2 EPS in range from 45 cents to 55 cents

* Says recovery maybe late 2009, more likely 2010

* Shares fall as much as 7.5 percent (Adds company comment, updates stock)

CHICAGO, April 23 (Reuters) - United Parcel Service Inc (UPS.N: Quote, Profile, Research) reported a lower-than-expected profit and gave an outlook below analysts' views as the global economic downturn has caused fewer packages to be shipped, sending its shares down as much as 7.5 percent.

The U.S. economic bellwether warned that its second-quarter outlook would likely fall below analysts' expectations and said that while the economic recovery could begin as soon as the end of this year, it would more likely come in 2010.

"The results are miserable, but we expected misery," said Edward Jones analyst Dan Ortwerth. "And all bets are off as to when that misery will end."

The world's largest package delivery company reported first-quarter net income of $401 million, or 40 cents a share, compared with $906 million, or 87 cents a share, a year earlier.

Excluding an impairment charge for the early retirement of the company's fleet of DC-8 jets, UPS earned 52 cents per share in the quarter. Analysts on average had expected earnings of 56 cents a share, according to Reuters Estimates.