UPS Earnings Jump 23%

Share this content:
Led by strong worldwide gains in package volume and the expansion of its supply chain and freight business, UPS reported yesterday a 17.9 percent increase in revenue and an adjusted 22.9 percent rise in diluted earnings per share for the third quarter.


For the three months ended Sept. 30, earnings per diluted share were 86 cents versus 78 cents in the prior-year period. Adjusting for a tax credit that helped earnings in 2004's third quarter, diluted earnings per share rose 22.9 percent, up from 70 cents a year ago.


"This has been a great quarter of growth for UPS," chairman/CEO Mike Eskew said. "We have tremendous momentum right now in the U.S. and around the world, and we see it continuing."


Consolidated revenue climbed to $10.55 billion, up from $8.95 billion in the prior-year period. Consolidated operating profit jumped 19.1 percent to $1.5 billion, while net income totaled $953 million. Global average daily package volume increased by 4.7 percent -- or by 644,000 packages daily -- to 14.3 million.


A 4 percent gain in U.S. average daily volume exceeded economic growth rates. This gain was paced by a 6.1 percent increase in Next Day Air packages. Average daily ground package volume rose 3.6 percent. Outside the United States, total average daily package volume rose 11.2 percent to 1.5 million a day, paced by double-digit gains in Europe and Asia.


For the full year, chief financial officer Scott Davis said UPS should meet its expectation of an 18 percent to 20 percent rise in diluted earnings per share compared with the adjusted $2.90 reported in 2004. (The 2004 diluted earnings per share on a GAAP basis were $2.93.)


For 2006, the global small package business should remain strong, Davis said, resulting in exceptional operating profit in both the domestic and international segments. UPS also expects steady improvement in its supply chain and freight services business.


Loading links....
close

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here