United Parcel Service Inc. (NYSE:UPS) today cut its economic outlook for the remainder of the year. UPS expects the slowdown in the global economy to reduce demand for its logistics services.
CEO Scott Davis said during a conference call that the slowdown in China and the euro zone debt crisis prompted the company to cut its economic projections. Davis noted that economies around the world are showing signs of weakening and the company’s customers are increasingly nervous.
Commenting on the U.S. economy, Davis said that it has shown recent signs of weakening as well.
UPS expects U.S. GDP growth to be around 1% in 2012, which is well below the Federal Reserve’s estimate of 2%.
UPS also lowered its guidance for 2012 diluted earnings share to $4.50-$4.70 per share from $4.75-$5 per share.
For the second quarter of 2012, UPS reported earnings per share of $1.15, an increase of 7.5% over the second quarter of 2011.
UPS stock fell sharply in trading today. The stock fell to an intra-day low of $73.51 and finished the day 4.63% lower at $74.34 on above average volume of 12.59 million.
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