UPS Reports Lower First-Quarter Income
UPS Inc.’s first-quarter net income fell by more than half to $401 million, or 40 cents a share, from $906 million, or 87 cents, a year ago.
Revenue fell 13.7% to $10.9 billion, the company said Thursday.
UPS said it earned 52 cents per share excluding an impairment charge for early retirement of its entire fleet of 44 DC-8 jets.
Its supply chain & freight segment’s operating profit fell to $40 million from $113 million a year ago, while revenue fell to $1.75 billion from $2.18 billion.
In a worsening less-than-truckload environment, its UPS Freight unit posted declines in revenue, shipments and tonnage, although there was month-over-month improvement in each through the quarter, UPS said.
Domestic package operating profit fell to $384 million ($565 million adjusted), from $959 million, while revenue fell to $6.95 billion from $7.74 billion.
International package operating profit fell to $294 million from $421 million, while revenue slipped to $2.24 billion from $2.76 billion.
The U.S. economic recovery might begin late this year, but more likely not until 2010, the company said, in issuing second-quarter earnings guidance of 45 cents to 55 cents per share.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
