UPS Net Profit Rises 10 PercentUnited Parcel Service Inc. said yesterday that net profit for its first quarter rose by 10 percent.
Results for the quarter-which runs from January 1 to March 31-- were driven by a 9 percent increase in global small package volume or 1.24 million packages per day, outpacing worldwide market growth, the Atlanta-based company reported.
Quarterly net profit totaled $975 million, compared with $882 million, a year earlier, UPS said. Revenue grew 16.5 percent, to $11.5 billion. Operating profit increased 12.3 percent to $1.6 billion.
"This was a quarter of outstanding growth that resulted in strong returns and excellent cash flow," said Mike Eskew, UPS chairman/CEO, in a statement. "To drive future results, we will continue to invest in our network, technology and products to bring even more value to the customer."
UPS is projecting diluted earnings per share in a range of $0.97 to $1.01 in the second quarter compared to the $0.88 reported during the prior-year period.
"We are reaffirming our full-year 2006 guidance," said chief financial officer Scott Davis, in a statement. "UPS continues to expect an increase in diluted earnings per share of 11-to-16 percent, consistent with the company's historical growth rate."