UPS POSTS 63% INCREASE IN FIRST-QUARTER NET INCOME

UPS POSTS 63% INCREASE IN FIRST-QUARTER NET INCOME    United Parcel Service, the U.S. transportation giant, said net income jumped 63 percent to $813 million in the first quarter, fueled by a 23-percent increase in international export package volume.
   Without one-time gains, net income rose 35.1 percent to $674 million, making the quarter UPS’s most profitable in history. Revenue increased 14 percent to $7.2 billion.
   “Around the world, traditional and dot-com companies alike are searching for ways to make fulfillment and supply chain management more efficient, and that plays directly to UPS’s strength,” said Jim Kelly, chairman and chief executive officer.
   Global average daily package volume increased 5.8 percent to 13.1 million boxes. Domestic package volume, air and ground combined, rose 5.3 percent. International import and export volume increased 12.1 percent.
   U.S. package revenue improved 11.7 percent to $5.8 billion, led by a 13.6-percent increase in deferred two- and three-day air sales. International package sales jumped 15.6 percent to $1 billion. International operating income improved 23.1 percent to $64 million.
   UPS’s non-package businesses, anchored by the Logistics Group and financial services, recorded a 65.6-percent gain in revenue to $356 million. Operating income rose to $126 million from $25 million, including one-time gains from the sale of assets.
   Those one-time gains included $241 million from the sale of two start-up companies that UPS had invested in through its Strategic Enterprise Fund unit. UPS manages the fund to incubate companies UPS is interested in for operations or technology expertise.