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UPS Slashes Guidance Amid "Slowing U.S. Industrial Economy

Submitted by Tyler Durden on 07/12/2013 08:42 -0400

With macro fundamental data anything but positive and earnings expectations on a one-way street lower, it makes perfect sense for stocks to be surging on expectations for the future, right? Well, it appears UPS is about to burst that little bubble of faith, hope, and unclarity.

*UPS EXPECTS TO REPORT 2Q EPS $1.13; EST. $1.20; YEAR VIEW CUT
*UPS SEES YEAR ADJ. EPS $4.65-$4.85, SAW $4.80-$5.06, EST. $4.98

Citing "customer preference for lower-yielding shipping solutions" - i.e. everyone is slashing costs still, the real kicker is what is driving their revenue and operating income below expectations - "a slowing US industrial economy." So much for the 'recovery'. For now, UPS is -4.2% pre-market.

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Fri, 07/12/2013 - 08:45 | 3744525 GubbermintWorker

And they don't allow you to ship guns either!

Fri, 07/12/2013 - 08:48 | 3744542 I am Jobe

But they do allow you to buy junk made by Chinese and ship it. In return the sheeples are indebted for life.

Fri, 07/12/2013 - 08:55 | 3744570 El Oregonian

UPS is downs.

Fri, 07/12/2013 - 09:03 | 3744592 SamAdams

If only UPS were the prefered transport of liquor. Bartending is in a breakout!

Fri, 07/12/2013 - 09:08 | 3744610 DeadFred

The economic recovery is moving employment entertainment and temp positions. It's not surprising that UPS is down, how much do hookers need to ship things. They might be able to help UPS with that down problem though.

Fri, 07/12/2013 - 10:06 | 3744815 onewayticket2

in our biz, we're shifting certain parcels from fedex to USPS expressmail. ~half the price/twice the speed of ground. sure, it's a pain to get it to the PO, but we just have an employee , err, temp handle....

Fri, 07/12/2013 - 10:29 | 3744950 eclectic syncretist

And if shipping is down, pretty much every other business is hurting too.

Fri, 07/12/2013 - 13:19 | 3745830 MarsInScorpio

Theere is a toll-free number you can call to get your package picked up by the postal service at your office.

-30-

Fri, 07/12/2013 - 09:07 | 3744607 Headbanger

But they will ship ammo.

Fri, 07/12/2013 - 09:09 | 3744612 10mm

Yes,they ship ammo.Ammoman.com ships ups.

Fri, 07/12/2013 - 09:26 | 3744669 Agent P

Yes they do...lots and lots of precious ammo!

Fri, 07/12/2013 - 08:46 | 3744526 slaughterer

Good news for the US Post Office system at least.

Bad news for ZH-most-hated-stock AMZN.

Fri, 07/12/2013 - 09:30 | 3744680 dwdollar

Yeah... UPS probably ensures its package weights are accurate to ensure it's actually making money... unlike the USPS.

About 90% of the ePackets I get from China are over weight by at least 50%.

Fri, 07/12/2013 - 09:44 | 3744726 Non Passaran

> About 90% of the ePackets I get from China are over weight by at least 50%.

That's funny - I was told Chinese airport workers observed the same about the Americans.

Fri, 07/12/2013 - 10:00 | 3744798 gjp

So naturally it's up 1% in Benny's wonder world

Fri, 07/12/2013 - 08:47 | 3744535 I am Jobe

g = 9.8 m/s^2 [down]

Whoo hoo, beating gravity is a great thing. One must take up yoga to read the chart.

Fri, 07/12/2013 - 08:49 | 3744545 101 years and c...

whats stronger: gravity or the printer? im betting on gravity.

Fri, 07/12/2013 - 09:08 | 3744609 Headbanger

Me too especially when the financial collapse implodes into a black hole!

Fri, 07/12/2013 - 09:58 | 3744783 ChacoFunFact

An object in free fall can do no work.

-Ed Asner, quoting Sir Isaac Neston while wondering outloud how it was possible for building 7 to fall at free fall speed while also effortlessly demolishing ton and tons and tons of steel and cemet pancake style.

Fri, 07/12/2013 - 08:47 | 3744538 lakecity55

At least the speed of packages will pick up unless......they lay guys off.

Fri, 07/12/2013 - 08:47 | 3744539 buzzsaw99

so then green shoots for the trannies?

Fri, 07/12/2013 - 08:48 | 3744543 Cdad

So...soaring oil, fake bank earnings, hot inflation numbers [just as the entire world is positioned for deflation], and flashing red lights for the consumer/industrial economy from UPS.

Rally!

Fri, 07/12/2013 - 08:49 | 3744546 jpc578

Clearly UPS needs David Tepper to teach them how to analyze economic data. What part of "the economy is booming" do they not understand?

Fri, 07/12/2013 - 08:50 | 3744551 I am Jobe

Send the Federal Reserve to unload the trucks.

Fri, 07/12/2013 - 08:50 | 3744547 The Contrarian ...

Just pretend and everything will be allright...

Fri, 07/12/2013 - 08:57 | 3744578 I am Jobe

USSA is done pretending. Now broke as shit and nothing more left to loot.

Fri, 07/12/2013 - 08:50 | 3744550 I am Jobe

In April everything was hunky dory

UPS Earnings Beat on Growth in Exports, Ground

http://www.cnbc.com/id/100668706

I guess one has to read past the 2nd paragraph to see the true earnings.

Fri, 07/12/2013 - 08:50 | 3744552 rsnoble

Friend went and applied at FEDX couple weeks ago and they told him not a good time they just laid off 25 people.

UPS should be getting a call from Obama anytime now. Too much reality here.

Fri, 07/12/2013 - 08:55 | 3744571 I am Jobe

No worries, more wars will be created to keep this ponzi scheme going

Fri, 07/12/2013 - 09:13 | 3744628 10mm

The only war would have to be a major,not some bombing mission or cake walk middle east shithole.Mass production of material and more than one foe.Im not seeing it.Im just saying.

Fri, 07/12/2013 - 08:51 | 3744555 Rainman

They need to hire JPM's bean counters...fixed !

Fri, 07/12/2013 - 08:52 | 3744560 CheapBastard

China exports slide raises doubts about currency policy

An unexpected slump in exports in June marked the latest worrying sign of a slowdown in the world's second-biggest economy and raised the prospect that regulators may be forced to drag the yuan back down after a massive rally this year.

http://ca.news.yahoo.com/china-exports-slide-raises-doubts-currency-poli...

Fri, 07/12/2013 - 08:55 | 3744567 NEOSERF

When I can print my own shit at home, it will be the final nail for UPS...in the meantime, these results can only mean opportunity, bring on Ackman

Fri, 07/12/2013 - 08:56 | 3744574 I am Jobe

or Icahn

Fri, 07/12/2013 - 08:56 | 3744573 csmith

Symbol should be "DWNS"

Fri, 07/12/2013 - 08:56 | 3744576 bnbdnb

Buy UPS now, leverage X2. Make 8% profit in three days. This is the new normal.

Fri, 07/12/2013 - 09:00 | 3744587 Cursive

Just ignore it. Like Cramer says, if it guides lower, this means that it is not a "bellweather" stock.

Fri, 07/12/2013 - 09:01 | 3744595 Mr. Hudson

Did you ever notice how ZH reports all the negative stuff, but never, and I mean "never", writes an article about how we can win this thing? Is ZH a provocateur? I was looking online at a dating service for aborigine women with big breasts, and now ZH has hooked me up with the same website. Coincidence? God, I hope I am not dealing with the same close minded idiots that are on Liberty Forest! Pleeeease, we need to step out of the box.

Fri, 07/12/2013 - 09:03 | 3744600 bnbdnb

ZH is a stop builder.

Fri, 07/12/2013 - 09:11 | 3744622 Cursive

@Mr. Hudson

From a public policy/political/economics standpoint, what is there positive to talk about? Also, WTF is Liberty Forest?

Fri, 07/12/2013 - 09:18 | 3744647 NotApplicable

Well, we are positively fucked.
Google knows all, Mr. Hudson

Fri, 07/12/2013 - 09:18 | 3744649 Mr. Hudson

The positive is about how we can win this thing. You gutless wonders have no clue. "Liberty Forest" is the now defunct "ronpaulforums.com".

Fri, 07/12/2013 - 09:25 | 3744666 Cursive

@Mr. Hudson

Do use usually generate a lot of positivity with ad hominem attacks like "gutless wonders?" Real positive spirit there, guy. Also, maybe the Ron Paul camp should direct their energies to getting Ron Paul (or his heir apparent) on the ballet in all 50 states for the next presidential election (if we have one).

Fri, 07/12/2013 - 09:30 | 3744687 Mr. Hudson

"Gutless wonder" only applies to someone who is a "gutless wonder". Sometimes you have to use ad hominems to wake people up. Are you awake? Are you ready for the ultimate challange?

Fri, 07/12/2013 - 09:16 | 3744634 10mm

Negative is the new reality.It hits me everytime i walk out the door.

Fri, 07/12/2013 - 09:27 | 3744672 Mr. Hudson

No. "Positive" is the new reality. Jim Rodgers said it best: "I became rich by buying when everybody else was selling". Rothschild took it a step further: "I only buy when there is blood in the streets". Do you see the pattern here?

Fri, 07/12/2013 - 09:30 | 3744686 Cursive

@Mr. Hudson

I completely agree that this is the best strategy for you. I encourage you to show your great faith in this great country of ours and buy up everything that is not nailed down. Be a patriot, Mr. Hudson, lever up and buy, buy, buy!

Fri, 07/12/2013 - 09:31 | 3744673 DeadFred

ZH is not one-stop-shopping for news. If you want good news (and there is some) you'll need to look at the myriad of sites that report only good news. There are very few that will report the dark side of today's news, but you likely won't miss such a report if you look at ZH regularly. Tyler owns the site and gets to do as he wishes and there is definitely a niche market for this slice of the truth.

Besides look at the national public service he's providing by making it easy for the NSA to tag so many of us malcontents by watching which IP addresses regularly visit this site. Yoohoo Mr. Clapper I'm over here and I think you're a lying, traitorous scumbag!

Fri, 07/12/2013 - 09:33 | 3744691 Mr. Hudson

I don't want "good news", I want "solutions". C'mon ZH!! We need to start brainstorming and come up with some solutions!!

Fri, 07/12/2013 - 09:39 | 3744708 dick cheneys ghost

boycott the Russell 2000

Fri, 07/12/2013 - 09:43 | 3744724 Tinky

Start with these two:

http://www.peakprosperity.com

http://www.resilientcommunities.com/

There are many others available to those who seek, so quit whining and open your eyes.

Fri, 07/12/2013 - 09:51 | 3744753 css1971

We know the solution.

http://www.positivemoney.org/

Monetary reform. You won't here those two words anywhere else.

Fri, 07/12/2013 - 11:41 | 3745344 BooMushroom

"On a long enough timeline, the survival rate for everyone drops down to zero."

Does that sound like the tag line of a site dedicated to publishing good news?

Fri, 07/12/2013 - 09:05 | 3744603 Shizzmoney

The economy is growing....just like a dick in the collective asses of the workers of Western countries.

Fri, 07/12/2013 - 09:10 | 3744617 timbo_em

A note to .gov/central_planning: If the Fed were to print and ship paper money like they did with that money that went awol in Iraq instead of just 1s and 0s, UPS would be drowning in orders. They could even hire some security guys from a temp agency to guard the money.

Fri, 07/12/2013 - 09:13 | 3744631 pragmatic hobo