UPS Inc. reported lower first-quarter income from a year ago, citing severe weather and higher expenses.
The parcel delivery company’s net income declined to $911 million, or 98 cents a share, from $1.04 billion, or $1.08, a year ago.
Revenue rose 2.6% to $13.8 billion and operating expenses rose 3.5% to $12.3 billion.
“Much of the U.S. economy was negatively affected by the severe weather conditions in the first quarter,” which resulted in lower operating results, Chairman and CEO Scott Davis said in a statement.
The UPS supply chain and freight unit’s operating profit rose 3.5% to $148 million, led by gains in its forwarding and distribution units.
Less-than-truckload unit UPS Freight’s revenue rose slightly on a 3.1% increase in LTL revenue per hundredweight, although tonnage and operating profit were lower, also due to severe winter weather.
Domestic package operating profit slipped 14.6% to $927 million. Revenue rose 2.6% to $8.5 billion, and daily volume improved 4.2%, led by UPS SurePost and UPS Second Day Air.
International package operating profit growth was 24% to $438 million. The prior-year period reflected a $39 million charge due to its attempted acquisition of TNT. International segment revenue rose 5% to $3.13 billion.
UPS is “encouraged by the positive trends in our business and expects the remainder of the year to perform as we originally guided,” Chief Financial Officer Kurt Kuehn said in a statement.
But Kuehn added that “due to the challenging start” of the year, the company is forecasting its full-year earnings per share to be $5.05 to $5.30, at the low end of its forecast range.
UPS is ranked No. 1 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.