(Reuters) -United Parcel Service reported a better-than-expected profit for its first quarter on Tuesday and said it will cut 20,000 jobs to control costs against a tough macroeconomic environment, sending its shares up 4% before the bell.
Trade tensions have prompted many companies to hold back on spending, which in turn has lowered the need for services between firms and hurt UPS’ performance in its domestic market.
The parcel giant said it was not providing any updates to its full-year outlook due to the economic uncertainty. Its first-quarter revenue fell to $21.5 billion from $21.7 billion a year ago.
The comnpany had in January forecast full-year revenue of $89 billion and operating margin to be about 10.8%.
Its U.S. domestic segment revenue grew 1.4% to $14.46 billion in the first quarter, driven by increase in air cargo and improving revenue per piece, even as volumes declined.
UPS postedan adjusted profit per share of $1.49 compared with expectations of $1.38, according to data compiled by LSEG.
(Reporting by Lisa Baertlein in Los Angeles and Abhinav Parmar in Bengaluru; Editing by Arun Koyyur)
Comments