UPS profit up sharply in first quarter

UPS profit up sharply in first quarter    UPS said it had first quarter net profit of $885 million, 66 percent more than the $533 million earned in the same 2010 period.
   Revenue was $12.58 billion in the quarter, 7.3 percent higher than in the $11.73 billion earned in the first quarter of 2011.
   The company said its U.S. domestic package business had revenue of $7.5 billion in the first quarter, 6.2 percent more than in the first quarter of 2010. Average daily volume fell slightly, but the company said it sold more premium products such as its next-day air package. Revenue per piece improved, primarily driven by increases in base rates and higher fuel surcharges.
   International package revenue increased 9.9 percent to $2.9 billion. Revenue per piece climbed 3.8 percent as gains from rate increases, higher fuel surcharges and product mix were offset somewhat by currency. Export average daily volume increased 7.2 percent.
   UPS said its supply chain and freight business had revenue of $2.14 billion in the first quarter, 7.6 percent more than in the first quarter of 2010. UPS said forwarding experienced margin expansion over last year due to revenue management initiatives and lower purchased transportation. UPS Freight revenue was up almost 23 percent over the prior-year period.