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鈥檚 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.
鈥淭he company鈥檚 performance was mixed during the second quarter,鈥 Chief Financial Officer Kurt Kuehn said in a statement.
鈥淎s we look toward the second half of the year, customers are more concerned as greater uncertainty exists. Additionally, economic growth expectations have come down,鈥 he added.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
