UPS POSTS SOLID THIRD-QUARTER RESULTS

UPS POSTS SOLID THIRD-QUARTER RESULTS    UPS, the Atlanta-based integrator giant, on Tuesday reported improved third-quarter results due to strong international growth and continued improvement in its supply chain business.
   Atlanta-based UPS saw third-quarter net income rise 1.7 percent to $578 million on revenue of $7.75 billion, up 4.8 percent. Consolidated operating profit improved 0.7 percent to $950 million.
   Operating profit from international operations jumped to $65 million, compared to a loss of $4 million in the third quarter of 2001. Export volume increased 9.9 percent in average daily deliveries with 15-percent growth in Europe and Asia. International operations benefited from the opening in April of an intra-Asia air hub in the Philippines.
   Revenue from domestic operations rose 1.4 percent to $5.89 billion, while operating profit declined 9.6 percent to $809 million. Average daily package volume declined 2.1 percent to 11.7 million as the company sought to regain business lost to other carriers before it completed negotiations on a new labor contract with the Teamsters.
   Scott Davis, UPS's chief financial officer, said UPS has 'succeeded in winning back just over half of the U.S. domestic volume diverted in June and July when contract talks were underway.'
   In UPS's non-package segment, which includes Supply Chain solutions, revenue increased 17.7 percent to $681 million, while operating profit climbed 46.2 percent to $76 million. During the quarter UPS signed on new customers including Nikon Inc., Scovill Fasteners Inc. and Oneida, as well as seeing existing customers such as Alcatel and Dell expand their business with the Supply Chain Solutions group.
   UPS said it is accelerating its integration of its new Supply Chain Solutions organization. That work is focused on moving the subsidiaries acquired over the past three years onto a common information technology platform, integrating sales forces, and establishing a regional approach to providing supply chain services, Davis said.
   For the nine-month period ended Sept. 30, net income fell slightly to $1.75 billion, from $1.78 billion in the first nine months of 2001, excluding non-recurring expenses. Revenue rose 3.1 percent to $23.0 billion.
   For the fourth quarter, UPS expects earnings in the range of 55 to 60 cents per diluted share, while volumes will lag year-earlier totals by about 1 percent. For the year, the company expects to meet or exceed its historical earnings growth rate of 13 percent, Davis said.