UPS earnings halved

UPS             RECESSION               LOGISTICS

Global - Consumers sending fewer packages and businesses holding back on shipping has bit into UPS bottom lines hard. The company reported a 49% dip in second quarter profits.

UPS said net income fell to US$445 million from US$873 million a year earlier. Revenue also slipped to US$10.8 billion from US$13 billion in the same period last year. It blamed diminished volumes and reduced fuel surcharges for the loss.

 "The economic environment continues to be difficult. Declines in both our domestic and international businesses appear to be stabilising but volumes will remain significantly below last year's levels," UPS CFO Kurt Kuehn said.

He added that while declines in economic indicators are less dramatic than earlier in the year, it is uncertain when business activity will begin to strengthen. Kuehn predicts the third quarter to be similar to the second quarter.

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