UPS gets a little down
US parcels company UPS has warned that its third quarter profit will miss industry estimates because parcel shipments continue to decline. The warning comes despite UPS seeing an increase in its revenue and volume growth in its second quarter results.
In the 3 months ending 30 June, the companys revenue increased by 3.9% to £5.1bn while operating profit fell 10% to £704m. UPS says it sees no signs of an economic rebound and has implemented cost-cuting measures, including a hiring freeze and the cancellation of several non-essential projects. This is despite the companys continual purchase of global logistics companies.
