UPS Earnings Impacted by Harsh Weather

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

April 24 (Bloomberg) -- Bloomberg’s Carol Massar examines UPS reports 12% profit drops due to challenging weather conditions with Betty Liu on Bloomberg Television’s “In The Loop.” (Source: Bloomberg)

Quarter.

Are we blaming it on the weather got go whether a big factor.

Does look like a disappointing quarter.

A couple of things going on.

In terms of the quarter they missed by a dime.

But everything -- everyone is focusing on is the company laid out the forecast for january and said it should be of the low end of the forecast.

This is coming on the heels of fedex also cutting the year-end forecast.

Next -- mixed results for the company.

Daily volume up almost eight percent.

That compares to a four percent rise.

It was a mixed quarter for that.

Scott davis saying on the call with analysts it was due to unusually harsh weather that produced challenging conditions.

In terms of operating, it was really tough during the quarter.

About half of the service bays were disrupted because of what was going on in the weather.

I was talking to the ups folks during the quarter and they talked about when atlanta got hit really hard with weather.

Folks were staying at their offices because folks could not get home.

Whether it was definitely a factor.

Ups made news in the last quarter about the missed shipments.

During the holidays.

They were going to spend more money to improve that.

What is the update?

Spending $100 million to improve during the peak time.

They are and trot -- on track.

So they are looking to do that.

Also talking with major retailers to make sure they have better communication and transparency so they do not have the logjam we saw last holiday season.

Tell us about the economy.

What they are saying is the macro environment looks decent.

They also say not robust but looks like better than last year.

They also said he anticipates for the u.s. that we will see the economic growth pick up later this year.

We will see.

Thank you.

Carol massar, chief national correspondent.

A few minutes away from the opening bell.

The top 10 trade you do not want

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change