By Allison Prang
Profit at United Parcel Service Inc. fell in the first quarter as revenue stayed about the same from the comparable quarter a year earlier and weather conditions hurt results in the U.S.
The delivery giant reported profit of $1.11 billion, down 17% compared with the first quarter a year earlier. UPS saw earnings of $1.28 a share, down from $1.55 a share. Analysts polled by Refinitiv were expecting $1.41 a share.
On an adjusted basis, UPS said earnings were $1.39 a share. That still missed analysts' estimates of $1.41 a share.
Revenue rose 0.3% to $17.16 billion. Analysts were expecting $17.78 billion.
Operating profit declined 12% in its U.S. division. UPS said domestic operating profit had a $80 million hit from bad weather during the quarter.
The company said it expects total operating profit to increase in the second quarter of this year but for adjusted earnings to be relatively unchanged from the year-earlier quarter. UPS reaffirmed its adjusted earnings guidance for the year of between $7.45 and $7.75 a share.
UPS also said it is going to open about 30% of its planned capacity for this year in the current quarter and that costs from that will affect results for the quarter.
At the end of January, UPS had said it expected adjusted operating profit for the year to increase in the low teens. It expected that metric to rise in the double digits across segments. On the company's last earnings call, Chief Financial Officer Richard Peretz had said 2019 was going to be a "pivot point" for the company.
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