Shares of logistics solutions provider United Parcel Service, Inc. (UPS) are falling more than 9% after reporting lower profit as well revenue, hurt by decline in volume. The company now sees full-year revenue at the low end of its previously provided outlook.
"In the first quarter, deceleration in U.S. retail sales resulted in lower volume than we anticipated, and we faced ongoing demand weakness in Asia," said Carol Tomé, UPS chief executive officer.
The company reported a profit of $1.895 billion or $2.19 per share for the first quarter. Excluding one-time items, earnings were $1.904 billion or $2.20 per share, 27.9% down from last year. Analysts on average polled by Thomson-Reuters were expecting earnings of $2.21 per share.
Quarterly revenue declined 6% to $22.9 billion from $24.4 billion last year. The consensus estimate was for $23.01 billion.
For the full year, UPS now expects revenue to be at the low end of its previously guided range $97.0 billion-$99.4 billion. Analysts see revenue of $98.14 billion for the year.
UPS, currently at $177.70, has been trading in the range of $154.87-$209.39 in the last 52 weeks.
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