Magellan Midstream raises 2Q, '08 proft forecast

The pipeline company now expects to earn a profit of 76 cents per unit, compared with a previous forecast of 66 cents per unit.

Analysts polled by Thomson Financial, on average, expect the company to report a profit of 68 cents per unit.

For the full year, Magellan forecasts earnings of $3.13 per unit, compared with $3.03 per unit previously. Analysts predict $2.84 per unit.

The company currently expects pipeline volumes to fall by 3 percent in the second quarter and by 1 percent for the year, mostly due to high fuel prices and the potential impact of Midwest flooding that could cut farming diesel demand.

Higher shipments of liquefied petroleum gases are expected to offset lower refined products volumes, the company said.