Package delivery company United Parcel Service said on Wednesday quarterly profit fell due to an impairment charge related to aging aircraft and expenses related to a voluntary layoff program.
Matt Rourke
A hydraulic hybrid UPS delivery truck is seen with the Philadelphia skyline in the background during a demonstration in Philadelphia, on Friday, June 23, 2006. The UPS truck uses an Environmental Protection Agency patented hydraulic hybrid technology that the EPA claims will increase fuel efficiency by 60 to 70 percent. Full hydraulic hybrid technology means that the conventional transmission and transfer case have been removed and replaced with a hydraulic drivetrain. (AP Photo/Matt Rourke)
UPS also reiterated its full-year outlook, saying U.S. economic growth has been softer than anticipated but growth outside the country has been "rapid."
The Atlanta-based company reported net income of $1.36 billion, or 78 cents a share, compared with $1.56 billion, or 89 cents a share, a year earlier.
Excluding the one-time charges, earnings were 96 cents a share, in line with analysts' average forecast as compiled by Reuters Estimates.
UPS reported first-quarter revenue of $11.9 billion, compared with $11.5 billion a year earlier. Analysts had predicted revenue for the quarter of $12.18 billion.
"Strong gains in our international package and supply chain and freight businesses helped offset the impact of a slowing U.S. economy," Chief Executive Officer Mike Eskew said in a statement.
The company said it expects second-quarter earnings per share in a range of $1.00 to $1.05. Analysts have forecast earnings per share for the quarter of $1.04.
UPS also reiterated its full-year forecast for adjusted earnings per share growth in a range of 6 percent to 10%.
"We will continue to invest aggressively to seize the growth opportunities created by the rise in global trade," Eskew said."
In premarket trade UPS shares were down 68 cents or nearly 1% at $71.25 from Tuesday's close of $71.93.