The largest overnight package company projected second-quarter earnings of $1.13. Analysts surveyed by Thomson Reuters 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. Follow @tedreednc -- Written by Ted Reed in Charlotte, N.C. >To contact the writer of this article, click here: Ted Reed