UPS 1Q profit falls 12 per cent as winter storms raise costs, cut into revenue
DALLAS – First-quarter revenue at UPS slumped 12 per cent as winter storms increased costs for the shipping giant and cut into its revenue.
The Atlanta company says the rough start to the year means that full-year earnings will come in at the low end of earlier forecasts.
UPS posted earnings of $911 million, or 98 cents per share, well short of the $1.08 that Wall Street was looking for, and less than the $1.04 billion, or $1.08 per share, it reported a year earlier.
UPS says winter storms reduced operating profit by $200 million as costs rose.
Revenue rose 2.6 per cent to $13.78 billion, but that’s still shy of the $13.91 billion that analysts had forecast.
Shares of UPS Inc. fell $1.31 to $97.93 before the opening bell Thursday.
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