UPS says the US economy is slowing down.
America’s largest trucking company said Tuesday that revenue fell 6% in the first quarter compared to a year earlier, as its operating profit fell 22%. Its earnings fell just short of Wall Street forecasts for the period.
“In the first quarter, deceleration in US retail sales resulted in lower volume than we anticipated, and we faced ongoing demand weakness in Asia,” said the company’s earnings statement. “Given current macro conditions, we expect volume to remain under pressure.”
The company said that while January volumes were about what it had expected, the macroeconomic environment weakened, causing a 7% drop in volume in March compared to a year ago. That acceleration in the drop in volume “caused us pause,” said UPS CEO Carole Tome.
Shares of UPS (UPS) fell more than 6% in early trading on the news.
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