Earlier today, UPS preannounced a shortfall in second quarter earnings. The stock acted just you would think it would....
The company stated in their press release.....
Overcapacity in the global air freight market, increasing customer preference for lower-yielding shipping solutions, and a slowing U.S. industrial economy drove revenue and operating profit below expectations. In addition, UPS experienced some slowing in package volume growth as a result of labor negotiations.
“We expect the second quarter market trends to persist and UPS is adapting to meet these conditions,” said Kurt Kuehn, UPS Chief Financial Officer.
Further still, the company expects weakness to persist through 2013 stating “Despite downward revisions to economic forecasts for the second half of the year".....
Slowing industrial growth, a persistent slowing in the economy, customer's trading down to lower-priced options..... this just screams an improving economy as predicted by the equity markets right?
The company stated in their press release.....
Overcapacity in the global air freight market, increasing customer preference for lower-yielding shipping solutions, and a slowing U.S. industrial economy drove revenue and operating profit below expectations. In addition, UPS experienced some slowing in package volume growth as a result of labor negotiations.
“We expect the second quarter market trends to persist and UPS is adapting to meet these conditions,” said Kurt Kuehn, UPS Chief Financial Officer.
Further still, the company expects weakness to persist through 2013 stating “Despite downward revisions to economic forecasts for the second half of the year".....
Slowing industrial growth, a persistent slowing in the economy, customer's trading down to lower-priced options..... this just screams an improving economy as predicted by the equity markets right?
No comments:
Post a Comment