UPS POSTS 22% JUMP IN PROFIT
United Parcel Service Inc., the Atlanta-based express and logistics giant, posted a 21.7-percent increase in net income of $702 million for the third quarter this year, helped by strong growth in international package volume and in worldwide logistics business.
Revenue increased 9.7 percent to $7.4 billion, while operating profit rose 17.3 percent to $1.16 billion. Package traffic growth was healthy in all sectors, rising 6.2 percent globally to an average 13.6 million deliveries a day. International U.S. export volume increased 23 percent. International domestic rose 11.4 percent. U.S. domestic next-day air business increased 8 percent, indicating that UPS may still be winning market share from chief rival FedEx Corp. Deferred air deliveries rose 7.1 percent in the United States. And ground volume increased 5 percent.
UPS Logistics Group said third quarter sales increased 36 percent year-over-year to $268 million. UPS contributed that growth to the start-up of several large contracts, including global accounts with National Semiconductor Corp. and Hewlett Packard Inc.
“We are successfully executing our strategy and growing every segment of our business,” said Jim Kelly, UPS chairman and chief executive officer. “Our domestic business is expanding and quite healthy, our intentional growth continues to be robust and every day UPS demonstrates its role in streamlining supply chains around the world through its logistics services.”
Year-to-date, sales were up 11.6 percent at $21.9 billion. Net income, excluding one-time charges and credits, grew 24.5 percent to $2.1 billion.
UPS expects a solid fourth quarter and will keep its 1.25 percent fuel surcharge in place due to stubbornly high fuel prices.