UPS Follows FedEx Warning (UPS)

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By Douglas A. McIntyre Published
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United Parcel Service, Inc. (NYSE: UPS) is currently halted on NYSE trading.  Big Brown decided it better follow the lead of FedEx Corp. (NYSE: FDX) and come clean with an earnings warning.  You can guess the two culprits, demand issues on lower than expected package volume and high energy costs.  The company now put earnings in a range of $0.83 to $0.88 EPS, down from a prior guidance of $0.97 EPS to $1.04 EPS.

The company did note that supply chain and freight unit performance have exceeded expectations.  On the lower demand, the company noted specifically that it has seen an accelerating contraction in the use of premium air products.

The formal earnings date will be released on July 22.  Shares were halted at $66.26 before the halt, and the 52-week range is $64.01 to $78.99.

We may see new 52-week lows and we may not.  After the FedEx earnings warning over the exact same thing this should have been mostly anticipated.

Jon C. Ogg
June 23, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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