UPS profit falls; consumers penny-pinch with cheap routes
United Parcel Service on Tuesday posted a smaller quarterly profit as customers, especially on international routes, chose slower, cheaper shipping services.
After the earnings announcement, the company's shares fell in pre-market trading. (Click here to get the latest quotes for UPS.)
The company posted second-quarter earnings excluding items of $1.13 per share, up/down from $1.15 a share in the year-earlier period. Revenue increased/decreased to $13.51 billion from $13.35 billion a year ago.
Calling the results disappointing, UPS said it was adapting to the changing market. Chief financial officer Kurt Kuehn said the results were below expectations, because of disappointing performances in the freight-forwarding and international package-delivery businesses.
Analysts had expected the company to report earnings excluding items of $1.13 a share on $13.59 billion in revenue, according to a consensus estimate from Thomson Reuters.
--The Associated Press contributed to this article.