UPS cuts profit forecast after holiday delivery rush

Global delivery giant UPS Friday slashed its fourth-quarter profit forecast after the company hired 30,000 extra temporary employees due to an unexpected increase in holiday deliveries. UPS expects to report earnings of $1.25 per share, below the $1.43 forecast by analysts. The company said full-year earnings will be $4.57 per share, below its previous forecast of $4.65-$4.85. "US results were negatively impacted by the challenges of the compressed peak season coupled with an unprecedented level of online shopping that included a surge of last-minute orders," the company said. To make up for the holiday rush, UPS utilized 85,000 temporary employees, 30,000 more than planned. UPS said it delivered 31 million packages on December 23, the most ever and 13 percent over the prior-year peak day. UPS and rival FedEx came under fire on Christmas when consumers complained of delivery delays for packages that retailers had promised would reach their destination in time for the December 25 holiday. UPS shares were off 3.2 percent in premarket trade.