UPS Sees First-Quarter Growth
UPS' first quarter ended March 31.
The first quarter saw UPS grow across all product lines. For example, UPS' international export volume grew 17 percent, led by Europe with a 25 percent increase.
The logistics business showed a 45.5 percent rise in revenue. In the United States, volume for the company's premium express product, UPS Next Day Air, grew 3.3 percent. Total average daily volume within the United States rose 1.3 percent, while consolidated worldwide daily volume rose 2 percent to 13.4 million packages.
UPS' consolidated operating profits, however, declined 11.5 percent during the period to $944 million. Adjusted net income totaled $582 million, down 8.9 percent.
While a number of external factors contributed to the company's decline in earnings -- including higher utility costs, reduced international cargo demand and one fewer working day -- the weakening U.S. economy was the most important cause.
"We were pleased that UPS maintained its growth across all product segments, particularly our international and domestic express businesses," said chairman/CEO Jim Kelly. "However, the economy did slow much faster than we expected, and we were not satisfied with our earnings performance."