UPS Lowers 1Q Outlook on Sluggish Economy
UPS Inc. reduced its first-quarter earnings estimate because domestic shipments are slowing as the U.S. economy weakens.
First-quarter earnings will be 86 to 87 cents per share — down from a previously forecast range of 94 to 98 cents, the company said in a statement late Tuesday.
Higher fuel costs and slower sales of premium products are reducing its profit, UPS said.
Chief Financial Officer Kurt Kuehn said last month that a slowing U.S. economy may make it difficult for the company to meet its first-quarter earnings target.
Company spokesman Norman Black told Bloomberg it was the third time that UPS has lowered its forecast since the company’s initial public offering in 1999.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
