UPS Misses Profit Estimates Amid Heavy Costs, Uneven Demand.

United Parcel Service Inc. (UPS) reported lower-than-expected profits in the second quarter due to wage inflation and weak package demand. The adjusted earnings per share were $1.79, compared to analysts' estimate of $1.98. UPS has been facing higher labor costs and reduced demand after a surge in e-commerce deliveries during the pandemic. The company's shares fell more than 10% in premarket trading, and if the decline continues, it will be the largest drop since 2008. UPS has been implementing cost-cutting measures and focusing on growing operating margins, but investors have raised concerns about its long-term sales goals. The company is also anticipating a boost in the second half of the year from a new contract with the US Postal Service and peak shipping demand during the holiday season. UPS has narrowed its revenue guidance for the full year and restarted a share buyback program. The results come after UPS announced the acquisition of Mexican parcel carrier Estafeta as part of its international expansion plans. [Extracted from the article]

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