UPS profit off 43%

UPS profit off 43%    UPS reported third quarter net profit of $549 million, 43 percent less than in the same period a year earlier.
   The company said revenue in the quarter ending Sept. 30 was $11.15 billion, 14.9 percent less than in the same 2008 period.
   Consolidated volume for the three months totaled 927 million packages, down 2.4% from the same period in 2008.
   “A stabilizing economic environment led to improving volume trends during the quarter, while UPS’s international business continued to increase market share,” the company said.

Davis

   “I’m encouraged by the signs of economic recovery that are becoming apparent, although we still have a long way to go,” said Scott Davis, chairman and chief executive officer. “Ongoing strategic investment has positioned UPS to capitalize on growth opportunities around the world.”
   By segment the company said:
   ' U.S. domestic package revenue was $6.87 billion in the quarter compared to $7.84 billion in the year-earlier period. Domestic package volume fell 3.6 percent to 799 million pieces.
   ' International package revenue was $1.86 billion compared to $2.32 billion in the same 2008 period. International volume rose 4 percent, while domestic volume in countries other than the United States rose 9.1 percent due to expansion and an acquisition in Turkey.
   ' Supply chain and freight revenue was $1.86 billion in the quarter compared to $2.32 billion in the same 2008 period. The company said “both the logistics and forwarding business units experienced moderation in the rate of revenue decline. The logistics unit again achieved significant growth from its services to the health care industry. UPS Freight performance was negatively impacted by increasingly competitive conditions.”
   The company said although there are signs of economic recovery, forecasters predict U.S. consumers will spend conservatively for the holidays this year.
   Kurt Kuehn, UPS’s chief financial officer, said, “Our customers have widely differing views on their outlook for the holiday season. Nevertheless, UPS is primed to handle the seasonal package surge as it materializes.”