This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

UPS Sees 'Difficult' First Quarter

UPS (UPS - Get Report) matched analysts' adjusted earnings estimates for the fourth quarter, but the package shipper predicted a "difficult" first three months of 2008.

Excluding special items, earnings in the final quarter of last year were $1.20 billion, or $1.13 a share, in line with the Thomson Financial consensus estimate. Revenue rose 6.1% to $13.4 billion. Analysts had estimated $13.1 billion.

The quarter "produced solid growth in spite of a sluggish U.S. economy," UPS said Wednesday. In the year-earlier period, it earned $1.1 billion, or $1.04 a share.

Looking ahead, UPS projected earnings of 94 cents to 98 cents in the first quarter and $4.30 to $4.50 for the full year. Analysts had estimated 98 cents for the quarter and $4.45 for the year.

"While there is more uncertainty in the U.S. economy today than there was a year ago, we remain focused and confident that we will grow our global business," said CFO Kurt Kuehn, in a prepared statement. "We anticipate the first quarter will be the most difficult of the year due to lower profitability from an early Easter and additional interest expense not yet offset by labor contract benefits."

During the fourth quarter, the company ratified a new five-year agreement with the International Brotherhood of Teamsters, resulting in a $6.1 billion payment to withdraw approximately 45,000 UPS employees from the union pension plan.

Including the impact of that charge, UPS had a loss of $2.6 billion, or $2.46 a share.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
UPS $105.07 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs