UPS Posts Strong Q1 Results
UPS reported double-digit percentage gains in revenue and higher package volumes yesterday for its first quarter.Highlights included an increase in average U.S. ground and air volume of 600,000 packages per day, or 5 percent, a doubling of international profit to $269 million and double-digit revenue growth in the UPS Supply Chain Solutions unit.
Consolidated revenue totaled $8.92 billion, up from the $8.02 billion posted during the prior-year period. Consolidated operating profit jumped 28.8 percent to $1.22 billion, almost equaling the operating profit reported in the most recent fourth quarter, which includes the peak holiday season.
Segment results included:
· International package revenues climbed 24.3 percent to $1.62 billion.
· U.S. package revenue rose 8.6 percent to $6.54 billion. Operating profit climbed 18 percent to $831 million. Average daily volume in the U.S. showed a 5 percent gain, with ground volume up 5.2 percent. Next Day Air and deferred air volume grew 3.1 percent and 5.8 percent, respectively. Average revenue per piece rose for all products, with the overall U.S. average revenue per piece increasing 1.7 percent.
· Revenue for the non-package segment grew 9.7 percent to $760 million, with revenue from the UPS Supply Chain Solutions unit increasing more than 12 percent. Operating profit rose 9.3 percent to $117 million.
