UPS cuts profit outlook for 2012

  • The world's biggest parcel delivery service, UPS, has cut its profit outlook for 2012 due to worsening global economic conditions.

    UPS expects trading in the second half of 2012 to be much tougher due to an economic downturn in key markets such as Asia and Europe.

    The U.S. company cut its forecast for earnings per share to $4.50-$4.70 from an earlier estimate of $4.75-$5.00 per share.

    UPS also reported a 2 percent increase in net income to $1.12 billion in the three months ending June, up from $1.09 billion the previous year.

    Parcel delivery and shipping are seen as an indicator of positive economic activity as rising revenue is usually a sign that firms and households are buying more goods.