April 26 - United Parcel Service missed sales and earnings forecast for the first quarter as the world's largest package shipper experiences a slowdown in Asia and Europe. Conway G. Gittens reports.
United Parcel Service is delivering caution by way of its latest quarterly report. The world's largest package delivery company is out with lower-than-expected earnings as customers worldwide downgrade to cheaper shipping options. UPS, considered a proxy for the global economy, also took note of a drop-off in packages coming out of Asia, as well as the impact of austerity measures in Europe. Total revenues grew to more than $13 billion in the first three months of the year. The bulk of that, $8 billion, came from growing U.S. sales. International revenues grew much slower at roughly $3 billion. The other $2 billion came from other operations. But UPS hopes its plan to acquire Dutch based delivery company TNT Express will boost international sales, once the near $7 billion buy is completed by the third-quarter target date. TNT is strong in Europe, but also has operations in China, Brazil, and India. Though it missed quarterly earnings and sales forecasts, UPS is standing by guidance for the year. Conway Gittens, Reuters