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UPS Hit Hard by Employee Retirement Costs

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UPS Hit Hard by Employee Retirement Costs

UPS Hit Hard by Employee Retirement Costs
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UPS Hit Hard by Employee Retirement Costs

TheStreet.com Videos 1:08 mins

United Parcel Service's profit slid nearly 60% in the second quarter as it faced higher employee retirement obligations. The package shipping company's bottom line fell to 49 cents a share from $1.13 a year ago, it was also a big miss in terms of what Wall Street was expecting. Revenue rose to more than $14 billion, thanks to the growing number of package shipments. That's almost 6% better than one year ago, but still came in lower than expectations. UPS incurred a $665 million after tax charge for transferring retirement healthcare benefits for some employees in the Teamsters union. Aside from that, the shipper is seeing good operating results as global package deliveries rose more than 7%. It is focusing on logistics after the disastrous delivery problems during the last holiday season. COO David Abney said UPS is looking to continue improving its technology and customer service quality. TheStreet's Julia Sun reports from New York.

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