UPS Profit Matches Expectations; Company Reiterates Forecast
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.
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.