UPS Volume Affected by the Sept. 11 AttacksUnited Parcel Service Inc. experienced an overall decline in package volume for the third quarter as a result of the Sept. 11 terrorist attacks, the company said yesterday.
Total package volume dropped 2.9 percent to 13.1 million packages per day for the quarter, which ended Sept. 30.
"Prior to Sept. 11, UPS was showing growth in its domestic air business and was on track to deliver on the financial guidance we had provided, managing through some difficult economic conditions," chief financial officer Scott Davis said. "The events of that day significantly altered our business performance."
UPS, however, saw continued growth in international export volume, which grew 8 percent , led by a 17 percent gain in European export volume.
UPS also a reported a gain in third-quarter revenue.
For the quarter, revenues totaled $7.5 billion, up 1.5 percent compared with the same period a year earlier. Consolidated operating profits declined 17.4 percent during the period to $943 million. Earnings per diluted share were 50 cents, a 16.7 percent decline from 60 cents per diluted share the prior year, on net income of $568 million versus $702 million in the third quarter of 2000.
Operating income included a $37 million credit for losses during September, which UPS expects will be reimbursed under the Airline Stabilization Act. The expected reimbursement reflects only a portion of the total estimated $130 million impact in September.