(UPS - Get Report)
said second-quarter earnings will not meet expectations and also reduced its full-year guidance.
The largest overnight package company projected second-quarter earnings of $1.13. Analysts surveyed by
had estimated $1.20. The company reduced full-year guidance to a range between $4.65 and $4.85. The consensus estimate had been $4.98.
UPS cited "overcapacity in the global air freight market, increasing customer preference for lower-yielding shipping solutions, and a slowing U.S. industrial economy," as well as "some slowing in package volume growth as a result of labor negotiations" as the factors that drove revenue and operating profit below expectations.
"We expect the second-quarter market trends to persist and UPS is adapting to meet these conditions," said CFO Kurt Kuehn in a prepared statement. "Despite downward revisions to economic forecasts for the second half of the year, we anticipate solid profit growth."
In pre-market trading a half hour before the opening on Friday, UPS shares were trading down $4.47 to $86.99.
The company will report earnings on July 23.
-- Written by Ted Reed in Charlotte, N.C.
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