UPS lowers second quarter and full-year earnings guidance, Logistics Management
July 12, 2013
In a second quarter earnings pre-announcement, UPS said today it is lowering its diluted earnings per share guidance to $1.13, which is below the Wall Street estimate of $1.20. Along with lowering its second quarter guidance, the Atlanta-based transportation and logistics bellwether is also reducing guidance for 2013 adjusted diluted EPS to a range of $4.65-to-$4.85, which is 3-to-7 percent higher than last year.
The company cited various reasons for lowering its quarterly and annual guidance, including overcapacity in the global air freight market, increasing customer preference for lower-yielding shipping solutions, and a slowing U.S. industrial economy driving revenue and operating profit below expectations, coupled with some slowing in package volume growth as a result of labor negotiations.
Even with the lowered guidance, UPS remains optimistic about future growth.