ATLANTA — UPS shares tumbled Friday after it predicted disappointing second-quarter earnings and reduced its profit forecast for the full year.
United Parcel Service Co. and rival FedEx Corp. are suffering as customers increasingly trade down from expensive priority shipping to slower and less expensive options. UPS expects this and other trends to continue.
Shares of UPS fell $5.33, or 5.8 percent, to $86.12 in trading Friday. They dropped as low as $85.78 earlier.
The Atlanta company said that second-quarter earnings, excluding special items, would be $1.13 per share. Analysts were expecting $1.20 per share, according to a survey by FactSet.
For all of 2013, UPS lowered its profit forecast to between $4.65 and $4.85 per share — that’s down from a January prediction of $4.80 to $5.06 per share. Analysts expected $4.98 per share.