UPS Reports Higher 2Q Profit; Cuts Forecast
UPS Inc. reported a higher second-quarter profit but cut its full-year earnings forecast, citing concern of a slowing global economy.
Net income rose to $1.12 billion, or $1.15 per share, from $1.1 billion, or $1.09, a year ago. Its U.S. operating profit rose 12% to $122 million.
Revenue rose 1.2% from $13.35 billion, the company said Tuesday.
Its supply chain and freight unit’s operating profit fell to $202 million from $243 million, but rose from an adjusted operating profit of $195 million a year ago.
Revenue was flat at less-than-truckload unit UPS Freight, as lower tonnage was offset by higher yields.
UPS lowered its full-year earnings forecast to $4.50 to $4.70 per share, down from a previous $4.75 to $5 per-share projection.
“The company’s performance was mixed during the second quarter,” Chief Financial Officer Kurt Kuehn said in a statement.
“As we look toward the second half of the year, customers are more concerned as greater uncertainty exists. Additionally, economic growth expectations have come down,” he added.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
