UPS cuts Q2 expectations

Source: Supply Chain Digital

Date :6/25/2008 2:09:52 AM

Stocks slid Tuesday, June 24, after UPS Inc issued a second-quarter profit warning saying high fuel costs and a sluggish US economy are hurting its earnings.

The Atlanta-based overnight package carrier said it expects to earn 83 cents to 88 cents for the quarter. It originally anticipated earnings between 97 cents and US$1.04.

Slow US economic growth and skyrocketing fuel expenses have resulted in lower-than-expected domestic package volume and reduced use of premium air products, the company said. Additionally, it said "the anemic US economy" is affecting international results.

However, the performance of the supply chain and freight segment continues to exceed expectations.

UPS will release second-quarter results on July 22.