Express giant UPS has cut its first quarter earnings forecast by some 10 per cent, blaming a weakening Amrican economy. It said its earnings expectations was down to $0.86 or $0.87 per diluted share from a previously anticipated range of $0.94-to-0.98.
Chief financial officer Kurt Kuehn said that UPS’s earnings guidance for the quarter would be difficult to achieve if lower volume trends experienced in February continued through March.
The US economy had continued to weaken, causing a reduction in domestic package volume and a shift away from premium products. Significantly increased fuel costs in the quarter also contributed to the lower-than-expected results, he said.