Reuters logo
UPDATE 1-UPS profit quarterly misses forecast, shares down
April 26, 2012 / 12:20 PM / 5 years ago

UPDATE 1-UPS profit quarterly misses forecast, shares down

April 26 (Reuters) - United Parcel Service’s higher quarterly profit missed forecasts, as lower-margin e-commerce drove domestic volume and volume remained weak out of Asia, sending shares down 3 percent in pre-market trading Thursday.

The world’s largest package delivery company on Thursday reported that net earnings rose 6 percent to $970 million, or $1.00 per share in the first quarter, from $915 million, or 91 cents a share, a year earlier.

Analysts had expected profit of $1.02 per share, on average, according to Thomson Reuters I/B/E/S.

“Increases in revenue per piece caused by higher base rates and fuel surcharges were mostly offset by changing product and customer mix as lower-margin e-commerce continued to drive volume growth” in the domestic business, UPS said.

In the international segment, UPS said weakness out of Asia and increased intra-regional volumes hurt revenue per piece.

Total revenue rose 4.4 percent to $13.14 billion, just shy of the $13.26 billion average forecast according to Thomson Reuters I/B/E/S.

UPS maintained its full-year guidance of $4.75 to $5.00 earnings per share.

Domestic revenue rose 6.2 percent and international revenue increased 2.3 percent.

The company’s stock dropped 3 percent in pre-market trading to $77.29 a share.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below