UNITED PARCEL SERVICE REVENUES UP, PROFITS DOWN

USA CARGO SERVICE MAINTAINS OTI LICENSE    United Parcel Service, the Atlanta-based express carrier, reported an 8.9-percent drop in first-quarter earnings, to $582 million, while revenues rose 4 percent to $7.6 billion.
   UPS credited the revenue increase to rapid growth of its international and logistics businesses, and modest increases in U.S. air and ground businesses.
   The company reported first-quarter growth among all product lines, despite the U.S. economic slowdown. UPS's international export volume grew 17 percent, led by Europe with a 25 percent increase. Logistics business revenue grew 45.5 percent, while the U.S. premium express product, UPS Next Day Air, grew 3.3 percent.
   Revenues for U.S. domestic package operations rose 2.3 percent to $6 billion, while revenue for international package operations rose 7.4 percent, to $1.1 billion. Revenue for non-package operation rose 22.2 percent to $435 million, led by the gain in UPS Logistics Group revenue, the company said.
   Operating profit fell 11.5 percent to $944 million.
   “We were pleased that UPS maintained its growth across all product segments, particularly our international and domestic express business,” said Jim Kelly, UPS chairman and chief executive officer. “However, the economy did slow much faster than we expected and we were not satisfied with our earnings performance.
   Kelly said that while UPS managed its operating expenses well, “we did not address discretionary costs. Given the change in the economy, we are managing now as if these slow conditions will persist. Going forward, we intend to reduce discretionary costs and capital expenditures.”
   UPS reported three acquisitions during the first quarter, including Fritz Cos. Inc., the large freight forwarder and customs broker; First International Bancorp, the trade finance and commercial lending company; and Mail Boxes Etc., the leading franchiser of business, communications and shipping centers.
   UPS also kicked off its direct air service to China as the quarter ended, and has also reached agreement to purchase the Miles Group Inc., parent company of Rudolph Miles & Sons, the large U.S. southern border broker.