A bicycle delivery man rides past a UPS truck in New York's Times Square, July 23, 2012.BRENDAN MCDERMID/Reuters
United Parcel Service Inc. reported higher quarterly results that missed forecasts and the world's largest package delivery company cut its 2012 outlook, citing uncertain global economic conditions.
The company lowered its full-year outlook to $4.50 to $4.70 a share, from its prior earnings estimate of $4.75 to $5.00 per share, and said customers are more concerned about the economy in the second half of the year.
"Increasing uncertainty in the United States, continuing weakness in Asia exports and the debt crisis in Europe are impacting projections of economic expansion," Scott Davis, UPS chief executive officer, said in a statement.
The revised full-year outlook would represent an increase of between 3 per cent and 8 per cent over 2011 adjusted results.
UPS on Tuesday said net earnings rose to $1.12-billion, or $1.16 per share in the second quarter, from $1.092-billion, or $1.09 per share a year earlier.
Adjusted profit rose 7.5 per cent to $1.15 per share compared with $1.07 per share a year earlier, when the company recorded two real estate transactions. The estimate was for $1.17 per share.
UPS's revenue rose to $13.35-billion from $13.19-billion a year ago, but fell shy of the $13.7-billion expected on average, according to Thomson Reuters I/B/E/S.
Atlanta-based UPS expects in the fourth quarter that it will close on its biggest takeover in its 105-year history, the purchase of Dutch company TNT Express.