Photo: Flickr/Rennett Stowe
UPS’s earnings announcement is out and it doesn’t look good.Q2 earnings came in at $1.15 per share, which missed analysts’ estimate of $1.17.
As a global package deliverer, UPS is one of the more reliable economic bellwethers in the world.
“Increasing uncertainty in the United States, continuing weakness in Asia exports and the debt crisis in Europe are impacting projections of economic expansion,” said CEO Scott Davis.
“Export volume increased 0.8% over the same quarter last year. European growth was mostly offset by double-digit declines in exports from Asia to the U.S. and Europe. Non-U.S. Domestic volume, down 3.2%, reflected weaker economic conditions and continued yield improvement initiatives.”
Even more concerning, guidance was weak.
“As we look toward the second half of the year, customers are more concerned as greater uncertainty exists,” said CFO Kurt Kuehn. “Additionally, economic growth expectations have come down.”
“[W]e are reducing our guidance for 2012 diluted earnings per share to a range of $4.50 to $4.70, an increase of 3%-to-8% over 2011 adjusted results.”
This is well below the analysts’ esimate of $4.83 per share.