Saturday, March 28th11.5°C
25490
23613

UPS 1Q profit falls 12 per cent as winter storms raise costs, cut into revenue

DALLAS - First-quarter net income at UPS slumped 12 per cent as winter storms increased costs for the shipping giant and cut into its revenue.

The Atlanta company said Thursday that the rough start to the year means that full-year earnings will come in at the low end of its earlier forecasts.

Separately, UPS said that a new contract with the Teamsters union covering 253,000 employees will take effect on Friday. The 5-year deal is retroactive to last August and includes wage and benefit increases and a new base wage of $10 per hour for part-timers, the company said.

About 125,000 full-time and part-time employees who were still on UPS-sponsored health plans will move to three separate multi-employer plans, UPS said in a regulatory filing. UPS said it will make a cash payment of $2.27 billion and transfer $1.2 billion for post-retirement obligations to the multi-employer plans.

UPS said that it expects to take a pretax charge of about $1.047 billion in the second quarter to cover the changes.

United Parcel Service Inc. reported first-quarter net income of $911 million, or 98 cents per share, well short of the $1.08 that Wall Street was expecting and less than the $1.04 billion, or $1.08 per share, it earned a year earlier.

UPS said winter storms reduced operating profit by $200 million as costs rose.

Revenue increased by 2.6 per cent to $13.78 billion, but that was still shy of the $13.91 billion that analysts had forecast, according to a FactSet survey.

Average daily shipments in the U.S. rose 4.2 per cent, but at the same time, revenue per package fell at home and abroad as customers shifted toward lower-priced services.

UPS said that full-year earnings would be at the low end of its earlier forecast of between $5.05 and $5.30 per share. Analysts expect $5.18 per share.

Shares of UPS Inc. fell 60 cents to close at $98.64. They are down 6 per cent so far in 2014.

The Canadian Press


Read more Business News

25718


Recent Trending




Today's Market
S&P TSX14812.42-57.38
S&P CDNX681.43+1.87
DJIA17712.66+34.43
Nasdaq4891.22+27.86
S&P 5002061.02+4.87
CDN Dollar0.7928-0.0082
Gold1196.30-8.80
Oil48.43-3.00
Lumber282.40-3.60
Natural Gas2.62-0.05

 
Okanagan Companies
Pacific Safety0.125-0.005
Knighthawk0.010.00
QHR Technologies Inc1.50+0.00
Cantex0.03-0.01
Anavex Life Sciences0.219+0.009
Metalex Ventures0.04-0.01
Russel Metals24.50-0.18
Copper Mountain Mining1.13+0.00
Colorado Resources0.125+0.010
ReliaBrand Inc0.006-0.001
Sunrise Resources Ltd0.045+0.000
Mission Ready Services0.255+0.020
Decisive Dividend Corporation1.80+0.02

 





FEATURED Property
2224926Updated Glenrosa Rancher
$339,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


CRA Notice of Assessment

Many Canadians rush to file their taxes on time each year and don’t think about it until the next year. One of the most overlooked notices received from the CRA annually is the annual Notice of ...


Medical confidential?

If ICBC asks your doctor for your information you may wonder: Can ICBC ask my doctor for my medical information? Can ICBC request a medical report from my doctor without my consent? What is ICBC entit...


Stay out of sales limbo!

Have you ever had a series of good meetings with a prospect … gathered all kinds of information … and given what you thought was a great presentation … only to receive a response ...

_



25666




Member of BC Press Council