UPS profits down by 57%

American parcel delivery giant UPS has reported it has suffered losses as a result of its restructured healthcare programme. UPS has said its earnings per share have dropped up to 57% during the second quarter of the year. Additionally, the parcel delivery company has claimed the difficult run up to Christmas in 2013 may have had an impact due to the fact the company had to make significant investments into increasing its network capacity. The US company invested $175 million into increasing capacity in an attempt to cope with the peak season, leading it to lowering its expectations in regards to earning for the rest of the year.

Despite its reports of losses, the company has said the underlying aspects of the business witnessed a stronger performance during the quarter which saw earnings per share adjust up to 7.1% in comparison to the same time period in 2013.

UPS has said e-commerce shipping with the US and international export growth has driven performance, with Scott Davis, UPS Chairman and CEO commenting: “The strong revenue growth this quarter is evidence that our portfolio resonates with customers, with more choosing UPS as their logistics provider.”