Less than two weeks before it announces its second-quarter earnings, United Parcel Service, Inc. (NYSE:UPS) warned on Friday that its results for the quarter would be lower than expected thanks to overcapacity in global freight linked to Asia’s slowdown and customers gravitating to cheaper shipping options.
The Atlanta-based world’s largest package delivery service said it expects earnings per share to come in at $1.13, down from the $1.20 average estimate of a Thomson Reuters poll. It also reduced its earnings estimate for the year.
“We are reducing guidance for 2013 adjusted diluted EPS to a range of $4.65 to $4.85,” said Kurt Kuehn, UPS chief financial officer.
UPS will release its second-quarter results on July 23.
Dan Brutto, president of UPS International, said during a conference call with analysts in April that freight tonnage is down compared to last year, especially for tech products, and that sluggishness will continue, especially out of Asian manufacturers.
To address concerns about stock sell-offs, UPS raised its dividend 8.8 percent to 62 cents per share. It made that first payment of the hiked dividend on May 29.
Angelo Young is a general assignment business reporter who joined IBTimes in April 2012. Much of his career has been behind the scenes as a copy editor, assignment editor and...