UPS shares tumbled yesterday after the express parcel company admitted it had misjudged peak Christmas demand for a second year in succession, overspending on efforts to avoid the congestion that delayed many parcel deliveries in late 2013.

The company warned the overspending meant full-year profits – to be announce on February 3rd – would fall short of its previous forecasts. It forecast earnings per share of $4.75, down from guidance of $4.90-$5.00. It also warned that 2015 earnings growth was likely to be below its 9-13 per cent annual growth target.

At the start of 2014 UPS warned that many of its systems had been overwhelmed during the 2013 Christmas peak shipping season, when volumes were higher than expected, and profits would fall short as a result. –(Copyright The Financial Times Limited 2015)