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UPS quarterly profit off 0.5pc to US$1.2 billion, but revenue's up 7pc
Atlanta's United Parcel Service (UPS saw third quarter net profit slip 0.5 per cent year on year to US$1.2 billion despite revenues rising seven per cent to $15.9 billion.
Revenues rose in all segments and major product categories. Operating profits stood at $2 billion, driven by strong performance in its Supply Chain and Freight segment, which saw revenues and operating profits increase by 13.4 per cent and 9.7 per cent, respectively.
Puss's international operating profit grew eight per cent as daily export volumes surged 19 per cent. US domestic revenues were up 3.9 per cent due to higher package demand and yields.
Next Day Air daily shipments rose eight per cent, however, the company's Deferred Air daily shipments were down slightly in comparison with the strong growth seen in Q3 2016.
In the Freight segment, third quarter revenue from less-than-truckload (LTL) volumes rose 9.3 per cent on tonnage growth of 5.5 per cent, with LTL revenue per hundredweight up 3.6 per cent year on year.
Increased customer demand from the retail and aerospace sectors were cited as the driving force behind the distribution unit's revenue and operating profit increase.
"UPS produced another solid quarter of financial performance, despite the impact of several natural disasters that slowed regional economic activity and damaged infrastructure," said UPS chief executive David Abney. "Our business segments adapted quickly to changing conditions this quarter, taking advantage of market opportunities while minimizing cost and service disruptions from recent events," he said.
In first nine months of the year, the company's net profit rose 3.7 per cent year on year to $3.8 billion on seven per cent higher revenues at $47 billion.
Said UPS chief financial officer Richard Perez: "Our recent performance gives us confidence moving forward as we adapt to evolving, global e-commerce strategies with increased seasonality. We are executing well on our plans, have a positive outlook for peak and as a result, we are moving higher in our original guidance range."
Revenues rose in all segments and major product categories. Operating profits stood at $2 billion, driven by strong performance in its Supply Chain and Freight segment, which saw revenues and operating profits increase by 13.4 per cent and 9.7 per cent, respectively.
Puss's international operating profit grew eight per cent as daily export volumes surged 19 per cent. US domestic revenues were up 3.9 per cent due to higher package demand and yields.
Next Day Air daily shipments rose eight per cent, however, the company's Deferred Air daily shipments were down slightly in comparison with the strong growth seen in Q3 2016.
In the Freight segment, third quarter revenue from less-than-truckload (LTL) volumes rose 9.3 per cent on tonnage growth of 5.5 per cent, with LTL revenue per hundredweight up 3.6 per cent year on year.
Increased customer demand from the retail and aerospace sectors were cited as the driving force behind the distribution unit's revenue and operating profit increase.
"UPS produced another solid quarter of financial performance, despite the impact of several natural disasters that slowed regional economic activity and damaged infrastructure," said UPS chief executive David Abney. "Our business segments adapted quickly to changing conditions this quarter, taking advantage of market opportunities while minimizing cost and service disruptions from recent events," he said.
In first nine months of the year, the company's net profit rose 3.7 per cent year on year to $3.8 billion on seven per cent higher revenues at $47 billion.
Said UPS chief financial officer Richard Perez: "Our recent performance gives us confidence moving forward as we adapt to evolving, global e-commerce strategies with increased seasonality. We are executing well on our plans, have a positive outlook for peak and as a result, we are moving higher in our original guidance range."
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