Wednesday, September 2nd12.4°C
27215

UPS says 4Q profit will miss expectations because of snarled holiday shipping

ATLANTA - UPS said the rough holiday shipping season means its fourth-quarter profit will be smaller than expected.

The package courier said on Friday that it dealt with a "an unprecedented level of online shopping that included a surge of last-minute orders." Online shopping is good for UPS, but those last-minute orders snarled its system.

The company said it "took extraordinary measures deploying additional equipment and people," including hiring 30,000 more temporary workers than originally planned. Bad weather last month also hurt results.

It delivered 31 million packages on Dec. 23, a company record. But that peak was reached six days later than UPS had expected.

UPS has not said how many packages missed their delivery deadlines, but customers all over the country reported delays. Amazon.com offered shipping charge refunds and a $20 credit for some customers affected by UPS delays.

FedEx also acknowledged problems.

UPS said its fourth-quarter profit will be $1.25 per share. Analysts surveyed by FactSet had been expecting $1.43 per share. It said its full-year profit would be $4.57 per share, after issuing previous guidance of $4.65 to $4.85 per share.

Its shares dropped $2.59, or 2.6 per cent, to $97.90 in morning trading Friday.

UPS reports full results on Jan. 30.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX13481.90-377.22
S&P CDNX547.97-11.51
DJIA16058.35-469.68
Nasdaq4636.10-140.40
S&P 5001913.85-58.33
CDN Dollar0.7555+0.001
Gold1136.00-2.70
Oil44.60-0.81
Lumber233.50-1.50
Natural Gas2.666-0.036

 
Okanagan Companies
Pacific Safety0.175-0.010
Knighthawk0.010.00
QHR Technologies Inc1.18-0.05
Cantex0.04-0.01
Anavex Life Sciences1.32-0.03
Metalex Ventures0.05-0.00
Russel Metals21.21-0.90
Copper Mountain Mining0.62-0.01
Colorado Resources0.085+0.010
ReliaBrand Inc0.0045+0.0005
Sunrise Resources Ltd0.015-0.005
Mission Ready Services0.085+0.000
Decisive Dividend Corp2.50-0.25

 





FEATURED Property
2200365387 Stellar Drive
4 bedrooms 4 baths
$650,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_








Member of BC Press Council


25143