The biggest package delivery company in the world, the United Parcel Service Inc lowered its 2013 forecast for earnings, saying the U.S. economy slowdown has hurt its revenue and profit for the second quarter.
After the announcement was made, the company stock fell the most in five years.
Adjusted earnings for UPS dropped to $1.13 per share during the second quarter, which marked the first fall in over three years, missing estimates from analysts of $1.20.
UPS and competitor FedEx Corp often looked at as economic bellwethers due to transporting goods around the world, are working hard to counter a shift by customers to cheaper options for shipping as growth domestically has been projected to slow down from last year.
CFO of UPS Kurt Kuehn said in the company statement that market trends would persist.
UPS dropped 5.8% to close at $86.12 on Friday, the biggest decline in one day since December of 2008. The stock thus far in 2013 has increased by 17%, while its competitor FedEx has increased by 12%. On Friday, FedEx fell by 2% to close Friday at $102.29.
The new forecast for UPS said its earnings would increase to between $4.65 and $4.85 per share during 2013, down from an earlier projection of $4.80 and $5.06.
The company did not mention how its adjusted earnings would be affected and did not provide sales or net income for the recently ended second quarter.
