UPS gains on international package, supply chain loses money
UPS said today that stronger than expected global package volume helped increase revenue 10.5 percent to $11.6 billion and operating profit by 5.2 percent to $1.6 billion for the quarter ended Sept. 30.
The company’s international business continued to lead the way with 21.7 percent growth in profit to $387 million. Profits were offset by problems in the UPS Supply Chain and Freight units where integration of Menlo Worldwide Forwarding for air freight and the Overnite ground freight acquisitions have proven more difficult than expected, Chief Executive Officer Michael Eskew said in a conference call.
UPS Supply Chain and Freight operating profits were down 127 percent. The division lost $19 million.
UPS also said it has entered a new five-year partnership with the Italian Post to deliver the postal service’s international express volume.
UPS gains on international package, supply chain loses money
