(UPS - Get Report)
said Tuesday that second-quarter earnings fell as customers opted for lower-cost shipping methods.
The largest overnight package shipper pre-announced second-quarter earnings on July 13, saying it would
a share. At the time, analysts surveyed by Thomson Reuters were forecasting $1.20. In the same period a year earlier, UPS earned $1.15 a share.
The company also reduced full-year EPS guidance to a range between $4.65 and $4.85. The consensus estimate had been $4.98.
Earnings fell to $1.05 billion from $1.12 billion.
"UPS second quarter results were below our expectations as a result of disappointing performance in freight forwarding and a slight miss in international package," Chief Financial Officer Kurt Kuehn said Tuesday in a prepared statement.
"Looking toward the back half of the year, although global economic expectations have been lowered, UPS expects growth in adjusted diluted earnings per share of 4-13% over the same period last year," he said.
During the quarter, revenue rose 1.2% to $13.5 billion. International package volume improved 5% while domestic volume grew 1.9%.
-- Written by Ted Reed in Charlotte, N.C.
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