UPS Joins FedEx With Profit Warning

Discussion in 'Wall St. News' started by S2007S, Jun 23, 2008.

  1. S2007S

    S2007S

    Fed ex warns, up next UPS. Transports are finally breaking down, if they break down you can forget about dow 12k, more like dow 11k.





    UPS Joins FedEx With Profit Warning

    06/23/08 - 05:29 PM EDT




    CHARLOTTE, N.C. -- UPS(UPS - Cramer's Take - Stockpickr), citing a sluggish U.S. economy and the blistering rise in fuel costs, has cut its second-quarter expectations.

    The Atlanta-based overnight package carrier said it expects to earn 83 cents to 88 cents for the quarter. It originally anticipated earnings between 97 cents and $1.04.

    Slow U.S. economic growth and skyrocketing fuel expenses have resulted in lower-than-expected domestic package volume and reduced use of premium air products, the company said. Additionally, it said "the anemic U.S. economy" is affecting international results.

    However, the performance of the supply chain and freight segment continues to exceed expectations. Shares of UPS were sliding 4.5% to $63.25 in late trading Monday.

    UPS will release second-quarter results on July 22.

    The warning from UPS comes less than a week after competitor FedEx (FDX - Cramer's Take - Stockpickr) said it would fall short of analysts' estimates for the current quarter and for fiscal 2009, also as a result of high fuel prices and the weak economy.