United Parcel Service, Atlanta, reported a 28 percent rise in third-quarter net income yesterday, attributing the gain to a strengthening U.S. package business and record performances by international and non-package segments.
Net income for the quarter ending Sept. 30 was $739 million, up from $578 million a year earlier. Excluding gains due to the sale of a business unit and a favorable tax ruling, net income totaled $702 million, an increase of 21 percent. Revenue rose 7.2 percent to $8.31 billion from $7.75 billion a year earlier.
The U.S. package business, paced by a 10.2 percent rise in Next Day Air volume and a 2 percent increase in ground business, grew 3.2 percent, or 374,000 packages per day, compared with the prior-year period.
International export package volume climbed 8.1 percent as that unit posted its most profitable quarter ever. Non-package revenue increased 6.2 percent, and operating profit for that unit jumped 92 percent, including a gain on the sale of UPS Aviation Technologies.
“We believe UPS is going to have a strong fourth quarter,” said Scott Davis, UPS chief financial officer. “We expect to see additional improvement in our U.S. domestic segment with volume growth of 3 percent to 4 percent. We anticipate the international and non-package segments will continue the solid growth trends we saw in the third quarter.”
