UPS, the world's largest package delivery company and a leading global provider of specialized transportation and logistics services, has reported a Q1 net profit of $906 million. This is down 12.2% from $1.03 billion last year.
The company also said Q2 earnings will, at best, be flat in the face of an "anemic" economy. "US economic activity deteriorated more rapidly than expected during the [first] quarter," chairman and CEO, Scott Davis, said.
Revenue was up 6.5%, to $12.68 billion, while expenses grew 6%, to $11.18 billion. Operating income was at $1.49 billion, up 9.9% over $1.35 billion last year.
International package revenue was up 15.7%, to $2.76 billion, while US domestic next-day air revenue was down 0.9%, to $1.64 billion.
According to CFO, Kurt Kuehn, not only were there "no signs" of economic improvement in this quarter, but also that "most forecasters are projecting that current anemic conditions will prevail for the remainder of the year."
He struck a positive note, however, by saying that "long-term fundamentals" for UPS and express cargo shipping were "very favorable."