|
|
 |
|
|
| |
|
UPS Adjusts Earnings Expectations Due to Slowing Economy
|
| |
|
ATLANTA, March 22, 2001 – United Parcel Service (NYSE: UPS) today announced it expects first quarter earnings to be in the range of $0.49 to $0.51 per share, which compares to earnings of $0.56 per share during the prior year period. The company cited the slowing economy as the primary reason for lower earnings.
UPS said while it will show volume increases across all products for the full quarter, domestic volume growth has slowed during the last two months to approximately 1%. In contrast, international export package volume has remained strong, growing more than 15% thus far in the quarter.
In addition to the economy, other factors that have impacted results include harsh weather conditions this winter, continuing weakness in the value of the Euro, softening cargo revenues, high utility costs and a difficult comparison to last year’s strong first quarter, which included an extra operating day.
Scott Davis, UPS Chief Financial Officer, commented, “We anticipated the first quarter would be difficult and thought we could achieve earnings per share slightly above last year. The economy has proven to be even more challenging and therefore we do not believe we will attain that target. Looking ahead, if current economic conditions persist, we anticipate UPS’s second quarter results will be in the range of $0.55 to $0.60 per share, as compared to $0.60 per share in last year’s second quarter. Even in a slow economy, we anticipate modest increases in domestic volume and in revenue per piece, and continued generation of industry-leading margins.
"In addition, our logistics and international businesses have continued to show strong growth," Davis added. "While we are carefully managing our costs, we will continue to expand our capabilities to design and execute global supply chain solutions for our customers. We remain extremely well positioned for the future.”
# # #
Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding the intent, belief and current expectations of UPS and its management regarding the company's strategic directions, prospects and future results. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including our competitive environment, economic and other conditions in the markets in which we operate, strikes, work stoppages and slowdowns, governmental regulation, increases in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company's filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference.
For more information, contact:
 Back to Top
|
Archive
