UPS earnings drop nearly 56%

Share this content:

UPS Inc. today today reported first quarter revenue of $10.9 billion, down 13.7% from the same quarter last year, and saw its earnings fall nearly 56% to $401 million, compared to profit of $906 million a year ago.

The company said the drop in revenue stemmed from less people sending packages and using premium services due to the recession.

For the three months ended March 31, consolidated average daily volume totaled 14.5 million packages, a 3.9% decline. Average revenue per piece decreased 6.9%, reflecting changes in product mix, declining fuel surcharges and weight per package and the negative impact of currency, according to UPS.

The January-March profit was 40 cents a share, compared to year-ago earnings of 87 cents a share.

UPS said it expects the second quarter to be as difficult.

"Economic indicators tell us recovery in the U.S. might begin late this year, but more likely not until 2010," said Kurt Kuehn, UPS's chief financial officer, in a statement.  "So we expect the second quarter will be another difficult one. As a result, UPS anticipates earnings per diluted share in a range of $0.45 to $0.55."

close

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above