ATLANTA, Ga. — The Sept. 11 attacks on New York and Washington are being blamed for United Parcel Service lowering its earnings estimate for the second time this quarter.
“The financial impact of this event on UPS in the third quarter will be approximately US$130 million,” says Scott Davis, chief financial officer. “This represents the additional costs we incurred to maintain service and lost revenue as a result of lower package volume since the attacks.”
Atlanta-based UPS, the world’s largest freight shipper, announced it expects to earn 45 to 48 cents per share in the third quarter, down from the 52 to 55 cents per share analysts had projected. The company initially expected earnings of 57 cents per share for the third quarter.
The company says volume has declined more than 10 per cent during the week of the attacks. Although business has picked up since then it still has not returned to early September levels.
The company will announce third-quarter results on Oct. 18.
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