America’s largest trucking company said Tuesday that revenue fell 6% in the first quarter compared to a year earlier, as its operating profit fell 22%. Its earnings fell just short of Wall Street forecasts for the period. “In the first quarter, deceleration in US retail sales resulted in lower volume than we anticipated, and we faced ongoing demand weakness in Asia,” said the company’s earnings statement. “Given current macro conditions, we expect volume to remain under pressure.
The company faces an August 1 contract expiration, at which point the union could go on strike. Tome tried to give a positive outlook on the ongoing labor negotiations, saying “good progress has been made” on a number of issues, including staffing for weekend deliveries and providing relief from heat in UPS delivery vans, which typically do not have air conditioning.
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