UPS Posts Lower Profit, but Meets Wall Street Estimates
United Parcel Services eported third-quarter earnings largely in line with market expectations on Tuesday, yet profits and revenues were weaker from a year ago amid a sputtering global economy.
UPS eported third-quarter earnings excluding items of $1.06 a share, down slightly from the comparable year ago period's figure at $1.09. Its reported earnings were partly hit by a previously announced $559 million charge to restructure employee pension liabilities.
Revenue fell slightly to $13.07 billion from $13.17 billion a year ago, while net income fell to $1.02 billion, down about four percent from last year's figure.
Analysts expected UPS to post earnings excluding items of $1.06 a share on $13.31 billion in revenue, according to a Thomson Reuters estimate.
Like many other multinational corporations, UPS cited headwinds coming from a slowing global economy. The company turned in higher domestic revenues in the third quarter, but in a reflection of challenges abroad, saw international package revenues edge downward.
"Our results were achieved in an environment of slowing global trade and changing market dynamics," said Scott Davis, UPS chairman and CEO, in a statement. "This not only highlights the flexibility of our business model; it illustrates the breadth of the UPS product portfolio in meeting the needs of customers."
Immediately after the opening bell on the New York Stock Exchange, the delivery company shares ounced by more than two percent, even as the broader market declined amid widespread disenchantment with earnings results. (Click here to get the latest quotes for UPS.)