United Parcel Service Inc, UPS, reported a very low profit in the first quarter on Thursday, sending its shares down 1.2 percent. According to the world’s biggest package delivery company, the decline was due to harsh winter weather in the United States.
UPS’s operating profit in its U.S. domestic business, which is its biggest, fell 12 percent to $666 million in the first quarter ended March 31, as it included an $80 million hit due to weather-related disruptions.
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Net income fell to $1.11 billion, or $1.28 per share, in the quarter, from $1.35 billion, or $1.55 per share, a year earlier.
Excluding a reduction of 7 cents per share due to severe storms in the U.S. Northeast and Midwest and other items, UPS earned $1.39 per share, missing analysts’ average estimate of $1.41, according to IBES data from Refinitiv.
Revenue rose 0.3 percent to $17.16 billion, but was below expectations of $17.78 billion.
Yetunde Adegoke
