UPS’ Third-Quarter Income Drops 43.4%
UPS Inc. said Thursday its second-quarter profit fell 43.4% to $549 million, or 55 cents a share, from $970 million, or 96 cents, a year ago.
Revenue declined 14.9% to $11.1 billion, the company said in a statement Thursday.
Its supply chain and freight segment’s operating profit fell 20.9% to $102 million, while revenue dropped 19.8% to $1.8 billion.
Less-than-truckload unit UPS Freight “was negatively impacted by increasingly competitive conditions in the freight environment,” UPS said. “Nonetheless, the business outperformed the market and gained share while maintaining yields.”
Domestic package operating profit plunged 54% to $514 million, while revenue fell 12.4% to $6.9 billion.
International package operating profit fell 18.9% to $313 million, while revenue fell 17.9% to $2.4 billion.
“Our customers have widely differing views on their outlook for the holiday season,” UPS said. “Nevertheless, UPS is primed to handle the seasonal package surge as it materializes.”
The carrier said it expects earnings per share of 58 cents to 65 cents in the fourth quarter.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
