July 12 - United Parcel Service, the company that delivered 4.1 billion packages in 2012, now says its profit will be smaller than Wall Street expects. Bobbi Rebell reports.
The Daily Digit today is 4.1 billion. That's how many packages United Parcel Service delivered last year. And that massive volume is why the warning UPS just issued is getting so much attention - and weighing on its stock. UPS says its second-quarter profit will come in short of estimates. They admit customers are choosing cheaper shipping options. And they point fingers at the weak economy. UPS also blames overcapacity in the global air freight market - a logical problem given that in a weak economy. People buy less stuff and so fewer goods are shipped. So the warning could be a signal of a ripple effect to other industries as well. But on the bright side: UPS is in a better position than its smaller rival, FedEx- because they focus more on international air shipments- where economic growth is struggling more than in UPS's North American stronghold.