UPS third-quarter profit drops on slowing global trade
(Reuters) - United Parcel Service Inc reported lower quarterly profit on Tuesday, citing slowing global trade, and said there was "some uncertainty" about the strength of the coming holiday season.
The world's largest package delivery company, which has adjusted its network to cope with slowing shipments from Asia and increased demand for cheaper shipping options, reported higher profit in its international segment.
"Our results were achieved in an environment of slowing global trade and changing market dynamics," Chief Executive Scott Davis said in a statement.
UPS said earnings declined to $469 million or 48 cents share, in the third quarter, from $1.07 billion, or $1.09 a share, a year earlier.
Adjusted earnings were $1.06 per share, matching analysts' estimates, compared with $1.09 a year ago,
Revenue totaled $13.07 billion, down from $13.17 billion a year ago. Analysts expected $13.3 billion, on average, according to Thomson Reuters I/B/E/S.
"While there is some uncertainty around the magnitude of the holiday shopping season, we are confident in UPS's ability to deliver," Chief Financial Officer Kurt Kuehn said in the statement.
UPS forecast 2012 adjusted earnings between $4.55 and $4.65 per share, which would be 5 percent to 7 percent above the 2011 figure. Analysts expect $4.56 a share, according to Thomson Reuters I/B/E/S.
(Reporting by Lynn Adler; Editing by Jeffrey Benkoe)
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