UPS earnings drop nearly 56%

Share this article:

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."

Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Direct Mail

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Direct Mail

Delivered: Birthday Deals Mailers

Delivered: Birthday Deals Mailers

What's in our mailbox this month: Birthday Deals. See which ones are good deals—and which ones you shouldn't deal with.

USPS Commissions Brain Research on Direct Mail

USPS Commissions Brain Research on Direct Mail

The Office of the Inspector General seeks neuroscientists to investigate human responses to digital and physical media.

Direct Mail Remains Impactful

Direct Mail Remains Impactful

Even in this prolific digital age, direct mail proves to be a strong tool for marketers. Standard mail volume is growing at 3% and marketers will spend $45 billion on ...