UPS sees double digit growth in first quarter
UPS has released its results for the first quarter of its financial year showing once more strong levels of growth. For the company as a whole, revenues rose to US$8.92bn (€7.43bn), up 11.3% from the US$8.02bn (€6.68bn) reported for the same period in 2003.
The revenues of its U.S. package division, which accounts for the majority of its turnover, rose by 8.6% to US$6.54bn (€5.45bn). Operating profit jumped by 18% to US$831m (€692m) and margins improved to 12.7%. Average daily volume in the U.S. showed a 5% increase.
Revenue for the non-package segment grew by 9.7% to US$760m (€633m). UPS Supply Chain Solutions, which accounts for most of the division, saw revenue by more than 12%. Operating profit rose by 9.3% to US$117m (€97.5m).
However its best performing unit was its international parcels division. Revenues rose by 24.3% to US$1.62bn (€1.35bn). Operating profit for this segment increased by 101% to US$269m (€224m) corresponding to a record operating margin of 16.6%. Management commented that export volumes from the US rose by 13%. This was helped by the reviving US economy and the weakness of the dollar. However this was eclipsed by a 60% leap in volumes from China, continuing the exceptional growth in the region.
