UPS (NYSE:UPS) said Tuesday that third-quarter earnings sank on slower global trade as the package delivery giant also narrowed its full-year forecast.
In the third quarter, UPS said earnings declined to $469 million or 48 cents share, from $1.07 billion, or $1.09 per share a year earlier. Adjusted earnings were $1.06 per share, matching analysts' estimates, compared with $1.09 a year ago.
In August, the company announced a decision to restructure pension liabilities for certain employees. As a result, UPS recorded an after-tax, non-cash charge of $559 million during the quarter.
Revenue totaled $13.07 billion, down from $13.17 billion a year ago. Analysts expected $13.3 billion, on average, according to Thomson Reuters.
"Our results were achieved in an environment of slowing global trade and changing market dynamics," UPS chairman and CEO Scott Davis said. "This not only highlights the flexibility of our business model; it illustrates the breadth of the UPS product portfolio in meeting the needs of customers."
Full-year profit will be in a range of $4.55 to $4.65 per share, Atlanta-based UPS said. That compared with a previous projection of $4.50 to $4.70 per share. Analysts had estimated 2012 earnings would be $4.55 per share, based on a Bloomberg survey.
Domestic package shipments rose 3.7 per cent, and international exports climbed 1.2 per cent. UPS is considered a bellwether for the global economy because it handles goods as varied as industrial parts, pharmaceuticals, financial documents and consumer electronics.
UPS also said improving international operating profit countered declines in its U.S. package and freight segments.