Container Top
Homes   Jobs   Cars   Shopping
Search

Events Calendar

EVENT SEARCH:

In This Section


Most Read Stories


Blogs:


Pets:
Not 101 Dalmations…but close!

The Heldenfiles:
Friday Notebook

Patrick McManamon:
For your perusal

Akron Zips:
The morning after

Tribe Matters:
Tribe makes roster moves

Cleveland Browns:
Lewis doesn't like boycott

Kent State Sports:
Kent State falls to Akron, 20-28

Cleveland Cavaliers:
Gameblog: Cavs at Knicks

Buckeye Blogging:
Weekly ‘B’ Deck Report – New Mexico St.

Varsity Letters:
Wrestling, bowling teams prepare for season

All Da King's Men:
If It Looks Like Islamic Terrorism…

Blog of Mass Destruction:
Dems Message To Women: Don't Enjoy The Sex

Akron Law Café:
Health Care Financing Reform: (62) The Stupak Amendment

See Jane Style:
Muffle Your Muffler

Car Chase:
Perfect Weather for an Autumn Drive

Let's Talk Real Estate:
RUMORS: Downtown Restaurant Explosion

Ohio Travels with Betty:
Jack is looking for a trip to Southern Ohio the week of November 16.

Sound Check:
The Black Keys to perform benefit concert at Musica on November 27

HRLite House:
Personal Rant – Why People Do Not Live in Northeast Ohio

Akron Gamer:
New 'Call of Duty' could set entertainment record

Economy, fuel costs take toll
UPS says profit down 21% in second quarter

Customers choose to use ground-based options over more expensive air shipments

By Mary Jane Credeur
Bloomberg News

United Parcel Service Inc., the world's largest package-delivery company, said second-quarter profit fell 21 percent as fuel costs rose and the cooling economy slowed domestic shipments.

Net income was $873 million, or 85 cents a share, compared with a year-earlier profit of $1.1 billion, or $1.04 a share. Revenue rose 6.7 percent to $13 billion, Atlanta-based UPS said Tuesday.

The decline reflected customers' shift away from air shipments in favor of cheaper ground-based options. While U.S. package volume could drop 2 percent in the second half of the year, earnings will be ''modestly better'' than the first half if business conditions don't deteriorate further, UPS said.

''Although things remain very uncertain, the sky is not falling,'' said Dan Ortwerth, an analyst at Edward Jones & Co. in St. Louis. ''With the second-half guidance, they're saying they're not quite sure how things are going to go'' in the third and fourth quarters.

It is the first time UPS has given a forecast on a half-year basis instead of quarterly.

Per-share profit matched the
85-cent average of 14 analyst estimates compiled by Bloomberg News. Sales were projected to be $12.8 billion, based on 12 estimates.

UPS rose $2.65, or 4.5 percent, to $62.11 in Tuesday trading. Shares have tumbled 12 percent this year.

Second-half profit will be $1.78 to $1.98 a share, UPS said. Economists surveyed by Bloomberg estimate 88 cents on average for the third quarter and $1 for the fourth, or $1.88 for the second half.

The company reduced its full-year outlook to $3.50 to $3.70 a share, from a previous range of $3.90 to $4.20, partly reflecting its lowered second-quarter estimate in June.

Competitor FedEx Corp., the second-largest shipper of packages in the U.S., reported its first quarterly loss in 11 years on June 18 because of rising fuel expenses and a writedown on its Kinko's unit.

The company is cutting costs by freezing nonsales hiring, reducing corporate travel and urging pilots and package-car drivers to reduce fuel use, he said.

Getting drivers to cut 1 mile per day from their routes will save $10 million worth of gasoline and diesel per year, the company said.

UPS controls about 51 percent of the U.S. package-delivery market, followed by FedEx's 31 percent share, according to SJ Consulting. The U.S. Postal Service controls about 13 percent, and DHL has 5 percent.

United Parcel Service Inc., the world's largest package-delivery company, said second-quarter profit fell 21 percent as fuel costs rose and the cooling economy slowed domestic shipments.

Get the full article here.


Story tools

Email  Email   Print  Print   Save  Save   Reprint  Reprint   Popular  Most Popular   Reprint  Subscribe

Share this story

AddThis Social Bookmark Button
















Most Commented Stories