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UPS quarterly profit up 8.3pc to US$2.1 billion as sales rise 5.7pc
EXPRESS delivery giant United Parcel Service (UPS) has posted an 8.3 per cent increase in third quarter operating profit to US$2.1 billion, drawn on revenues of $14.3 billion, up 5.7 per cent.
Total revenue per package declined 1.5 per cent as base rate improvements were offset by changes in customer and product mix.
International revenue increased 5.5 per cent to $3.2 billion on daily package growth of 6.7 per cent. Export products jumped 9.4 per cent with gains worldwide. Shipments out of Asia grew 16 per cent and Europe was up 14 per cent.
Supply chain and freight revenue was up 7.4 per cent to $2.4 billion, resulting primarily from growth in the distribution and UPS freight business units.
Worldwide, UPS delivered 1.1 billion packages, up 6.9 per cent year on year.
Domestic packages delivery was up 6.9 per cent as demand from both B2C and B2B customers improved. International export shipments increased 9.4 per cent with strong growth in both Asia and Europe.
揟he solid performance we delivered this quarter establishes our ability to stay ahead of market growth and generate positive operating leverage, ?said CEO David Abney.
US domestic revenue increased to $8.7 billion, up 5.3 per cent year on year. Daily package volume improved 6.9 per cent, led by gains in UPS Ground and deferred products up 7.7 per cent and 5.9 per cent respectively.
E-commerce continued to drive strong B2C growth, while B2B deliveries were also higher this quarter, said the company statement. UPS SurePost shipments increased more than 50 per cent, contributing to the mix change.
Forwarding revenue was higher primarily due to increased international air freight tonnage which was aided by high-tech product launches and government sector gains.
Distribution revenue increased more than 10 per cent over the same quarter last year. Strong demand from healthcare and retail sector customers contributed to the growth.
UPS freight revenue increased 7.9 per cent to $810 million. LTL shipments were 4.7 per cent higher and revenue per hundredweight improved 1.1 per cent.
UPS expects shipments delivered during the month of December to climb 11 per cent over the prior year. As previously announced, the company committed an additional $175 million in operating expense and $500 million in capital expenditures to enhance its capabilities and prepare the network for peak and future volume growth.
"We expect another robust peak season and are confident our network is prepared to operate at the highest level," said CFO Kurt Kuehn.
Total revenue per package declined 1.5 per cent as base rate improvements were offset by changes in customer and product mix.
International revenue increased 5.5 per cent to $3.2 billion on daily package growth of 6.7 per cent. Export products jumped 9.4 per cent with gains worldwide. Shipments out of Asia grew 16 per cent and Europe was up 14 per cent.
Supply chain and freight revenue was up 7.4 per cent to $2.4 billion, resulting primarily from growth in the distribution and UPS freight business units.
Worldwide, UPS delivered 1.1 billion packages, up 6.9 per cent year on year.
Domestic packages delivery was up 6.9 per cent as demand from both B2C and B2B customers improved. International export shipments increased 9.4 per cent with strong growth in both Asia and Europe.
揟he solid performance we delivered this quarter establishes our ability to stay ahead of market growth and generate positive operating leverage, ?said CEO David Abney.
US domestic revenue increased to $8.7 billion, up 5.3 per cent year on year. Daily package volume improved 6.9 per cent, led by gains in UPS Ground and deferred products up 7.7 per cent and 5.9 per cent respectively.
E-commerce continued to drive strong B2C growth, while B2B deliveries were also higher this quarter, said the company statement. UPS SurePost shipments increased more than 50 per cent, contributing to the mix change.
Forwarding revenue was higher primarily due to increased international air freight tonnage which was aided by high-tech product launches and government sector gains.
Distribution revenue increased more than 10 per cent over the same quarter last year. Strong demand from healthcare and retail sector customers contributed to the growth.
UPS freight revenue increased 7.9 per cent to $810 million. LTL shipments were 4.7 per cent higher and revenue per hundredweight improved 1.1 per cent.
UPS expects shipments delivered during the month of December to climb 11 per cent over the prior year. As previously announced, the company committed an additional $175 million in operating expense and $500 million in capital expenditures to enhance its capabilities and prepare the network for peak and future volume growth.
"We expect another robust peak season and are confident our network is prepared to operate at the highest level," said CFO Kurt Kuehn.
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