Member access

4-Traders Homepage  >  Shares  >  Nyse  >  United Parcel Service, Inc.    UPS   US9113121068

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

United Parcel Service, Inc. : UPS 2Q Net Up 2.2% on Strength in US, Cuts Year View

07/24/2012 | 08:21am US/Eastern
   By Saabira Chaudhuri 
 

United Parcel Service Inc.'s (UPS) second-quarter profit rose 2.2% the package giant saw a stronger performance from its U.S. package segment, offsetting weakness overseas.

But the company reduced its per-share earnings guidance for the year to $4.50 to $4.70 a share from its April guidance of $4.75 to $5 a share.

"Increasing uncertainty in the United States, continuing weakness in Asia exports and the debt crisis in Europe are impacting projections of economic expansion," Chief Executive Scott Davis said.

Shares slipped 3.3% to $75.38 in recent premarket trading as results also missed expectations. The stock is up 6.5% so far this year.

UPS continues to face a weak global air-freight market, which has suffered from slumping volume in Asia and a drop in exports to the U.S., though the shipping company said earlier this year its domestic package shipments are rising at a brisk pace.

Earlier this month, UPS's freight division raised its rates by an average 5.9% for noncontractual shipments in the U.S., Canada and Mexico. And in May the company outlined plans to use a higher percentage of cash to finance its $6.8 billion purchase of Dutch package shipper TNT Express N.V. (TNTE.AE, TNTEY) and received authorization to buy back an additional $5 billion in stock.

UPS reported earnings of $1.12 billion, or $1.15 a share, up from $1.09 billion, or $1.09 a share, a year earlier. Revenue edged up 1.2% to $13.35 billion.

Analysts surveyed by Thomson Reuters expected a profit of $1.17 on revenue of $13.7 billion.

Operating margin widenened slightly to 13.4% from 13.2%.

U.S. package revenue increased 4.1% as the unit's operating profit climbed 14%. Daily volume rose 4%. In the international package business, revenue slipped 4.1% under pressure from currency fluctuations, weaker global economies and reductions in exports from Asia, while operating profit slid 10%. Average volume per day was flat at 2.3 million.

Supply chain and freight revenue fell 1.7% to $2.28 billion.

Write to Saabira Chaudhuri at saabira.chaudhuri@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

React to this article
Latest news on UNITED PARCEL SERVICE, INC
05/27 UNITED PARCEL SERVICE : UPS Appoints Boon Tiam Tan to Lead UPS Thailand
05/26 UNITED PARCEL SERVICE : UPS Appoints Boon Tiam Tan to Lead UPS Thailand; Affirms..
05/22 UNITED PARCEL SERVICE : UPS Releases Fifth Annual High Tech Survey Results
05/20 UPS Releases Fifth Annual High Tech Survey Results
05/20 UNITED PARCEL SERVICE : Agrees to Settle Alleged Civil False Claims Act Violatio..
05/20 UNITED PARCEL SERVICE : Statement about UPS Policy Regarding Shipment of Silence..
05/19 UNITED PARCEL SERVICE : UPS settles complaint it short-changed government custom..
05/18DJParcel-Delivery Firms and Retailers Experiment With Package Pickup Points
05/14 UNITED PARCEL SERVICE : UPS - Mark Wallace Appointed Engineering Senior Vice Pre..
05/14 UPS Delivers for the 2015 Special Olympics World Games Los Angeles
Advertisement
Chart
Duration : Period :
United Parcel Service, Inc Technical Analysis Chart | UPS | US9113121068 | 4-Traders
Income Statement Evolution
More Financials