UPS reports profits increase
UPS has announced that its international operating profit increased 14% to $576m in the third quarter (Q3) of 2016 – marking the seventh consecutive quarter of double-digit growth. Total reported revenue was $14.9bn, up 4.9% over the same quarter last year. Changes in fuel surcharges and currency exchange rates took the revenue growth down – on a currency-neutral basis, revenue increased 5.1%.
David Abney, UPS chairman and CEO, commented: “The investments we are making in technology and capacity will ensure UPS continues to deliver great results well into the future.”
Richard Peretz, UPS chief financial officer, added: “Through the third quarter we are performing according to our expectations, and we’ve taken the necessary steps to ensure we capitalize on record volume levels during peak season.
“As a result, we remain confident in achieving our 2016 full-year guidance for adjusted diluted earnings per share.”
U.S. Domestic revenue was up 4.8% on Q3 2015, to $9.3bn, and average daily package volume increased 5.7%. Operating profit was $1.3bn and the operating margin was 13.5%.
The 14% jump in international operating profit jumped 14% to $576m was a record for any third quarter in UPS history. Volume growth in all products, base-rate increases and network efficiency gains contributed to the improved profitability. Revenue was $3.0bn, up 2.2% on Q3 2015.
Supply Chain and Freight revenue increased 8.1%, to $2.6n. Revenue growth was primarily due to the Coyote Logistics acquisition midway through the third quarter last year.
