UPS NET INCOME DROPS 19%

UPS NET INCOME DROPS 19%    UPS reported a 19-percent drop in net income in the third quarter to $568 million. For the quarter, revenues totaled $7.5 billion, up 1.5 percent.
   Consolidated operating profits, including an $37-million credit for losses during September which UPS expects will be reimbursed under the Airline Stabilization Act, declined 17.4 percent to $943 million.
   “The events of (Sept. 11) significantly altered our business performance. Nevertheless, highly effective cost controls in place for the last two quarters and growth efforts mitigated the impact. We will continue to effectively manage this business moving forward while improving our positioning for the inevitable economic rebound.”
   The third quarter saw a modest decline in U.S. domestic package revenues, which was offset by a small gain in international revenues and a 53-percent jump in non-package revenues. U.S. package revenues totaled $5.8 billion, while international revenues totaled $1 billion and non-package revenues, including those of UPS Logistics Group, climbed to $663 million. The increase in non-package revenue reflected inclusion of Fritz Cos. and First International Bancorp into UPS.
   For the nine months ended Sept. 30, revenues climbed 3.1 percent over the same period in 2000 to $22.6 billion. Operating profit declined 13.1 percent to $2.9 billion.