United Parcel Service (NYSE:UPS) weighed in on Tuesday with a 56% tumble in third-quarter profits due to charges and shrinking overseas revenue, but the shipping giant’s adjusted earnings managed to match Wall Street’s expectations.
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Shares of the world’s largest package delivery company rose more than 1% on the results, outperforming a steep drop in the premarkets.
Atlanta-based UPS said it earned $469 million, or 48 cents a share, last quarter, compared with a profit of $1.07 billion, or $1.09 a share, a year earlier. Excluding one-time items, it earned $1.06 a share, down from $1.09 the year earlier but meeting the Street’s view.
Revenue dipped 0.7% to $13.07 billion, coming in shy compared with estimates from analysts for $13.3 billion.
UPS was hurt by slowing global trade as its third-quarter international package average volume slid to 2.3 million per day, down from 2.34 million a year ago. International revenue dropped 3.7% as a result.
By comparison, domestic package volume jumped to 13.2 million per day from 12.74 million in the same period of 2011. U.S. revenue inched up 1.2%.
Overall, UPS delivered 15.5 million packages per day, up 2.9% year-over-year.
“Our results were achieved in an environment of slowing global trade and changing market dynamics,” CEO Scott Davis said in a statement. “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.”
Looking ahead, UPS projected a 5% to 7% increase in 2012 non-GAAP EPS, translating to $4.55 to $4.65. The midpoint of that range, $4.60, would trail the Street’s view of $4.56. Previously UPS saw EPS of $4.50 to $4.70.
Wall Street bid UPS’s shares 1.63% higher to $72.73 ahead of the open, putting them on pace to cut their 2012 slump of about 2%. The performance stands in contrast with a 1.2% tumble on the S&P 500 futures.