NEW YORK (AP) — United Parcel Service's first quarter financial results fell short of Wall Street forecasts as the package-delivery company's revenue flat-lined
A series of harsh storms during the quarter cut into revenue while the company ramped up spending on a reorganization program.
Profit fell 17% to $1.11 billion, or $1.28 per share, during the quarter on nearly flat revenue of $17.16 billion. Adjusted profit of $1.39 per share was still short of Wall Street forecasts.
Analysts polled by FactSet expected $1.42 per share in profit on $17.77 billion in revenue.
The company has been working to upgrade its network as the growth of online shopping puts more pressure on delivery speeds. Both ground and air shipping volumes grew during the quarter, partly on high demand for faster delivery options.
But meeting that volume growth comes at a cost. UPS is the midst of a "transformation" plan to automate some operations and open new facilities. That cost it an additional $123 million during the most recent quarter.
Atlanta-based UPS reaffirmed its full-year profit outlook of $7.45 to $7.75 per share. Analysts expect $7.52 per share.
In premarket trading, UPS shares slid 3%.
Source: AP
