UPS first quarter earnings up 6%

UPS revenue increased 4.5% to $13.1 billion Q1 2012 over Q1 2011, the company said in its earnings report released April 26. Net income rose 6% to $970 million in the first quarter, compared with $915 million in the first quarter of 2011.

“We continue to see strong demand for UPS products and services, especially in the U.S. and Europe,” said UPS CEO Scott Davis on its earnings call, adding that retail sales grew faster than expected during the first quarter.

Davis said the first quarter growth was due, in part, to the acquisition of Kiala, a Brussels-based customer delivery firm in February. UPS also announced in March that it would acquire TNT Express, a Netherlands-based delivery services company, although that deal has yet to be finalized by regulators.

Kurt Kuehn, CFO for UPS, said on the earnings call that first quarter is typically UPS's slowest quarter.