Higher fuel prices and a decline in premium shipping customers are being blamed for a drop in UPS’s second quarter profits.
Profits for UPS went up last quarter, but a dime less per share than they did over the same time last year. That’s also true for international shipping, which grew at a slower rate than it did in 2007.
The company blames the sagging profits on a decline in premium shipping customers and a 67 percent jump in fuel bills. Spokesperson Norman Black says the company has already begun looking for ways to save money.
“Our cost-cutting at the moment is focused first on those things we can immediately control,” he says. “Things like relocations, travel expenses; we have a hiring freeze in place for any jobs at the corporate office here for example that don’t involve sales.”
The company has also dimmed its outlook for the rest of the year. Black says that and the cost-cutting measures are unlikely to affect the Louisville hub.