UPS Says Profit Fell 43% as Domestic Shipments Slide - Bloomberg
Net income slid to $549 million, or 55 cents a share, from $970 million, or 96 cents, a year earlier, Atlanta-based UPS said today in a statement. Revenue fell 15 percent to $11.2 billion.
UPS is considered a proxy for the U.S. economy because it handles half of all packages sent, ranging from auto parts and medicine to financial documents and clothing. UPS’s Ground unit volume slid 6.2 percent as a competing service from FedEx Corp. took away some deliveries, said Donald Broughton, an analyst at Avondale Partners LLC in Nashville, Tennessee. He rates the shares “market perform.”
“Ground is the bread and butter of UPS and if that’s down, it’s not good,” he said. “The underlying business was weaker than we expected.”
Net income slid to $549 million, or 55 cents a share, from $970 million, or 96 cents, a year earlier, Atlanta-based UPS said today in a statement. Revenue fell 15 percent to $11.2 billion.
UPS is considered a proxy for the U.S. economy because it handles half of all packages sent, ranging from auto parts and medicine to financial documents and clothing. UPS’s Ground unit volume slid 6.2 percent as a competing service from FedEx Corp. took away some deliveries, said Donald Broughton, an analyst at Avondale Partners LLC in Nashville, Tennessee. He rates the shares “market perform.”
“Ground is the bread and butter of UPS and if that’s down, it’s not good,” he said. “The underlying business was weaker than we expected.”
