UPS announces third quarter results
UPS has reported that its international operating profits for the third quarter (3Q) of 2015 were up more than 10% to $507m, driving company-wide results higher. Total revenue was down slightly to $14.2bn, which UPS attributed to currency exchange rates and lower fuel surcharges. On a currency-neutral basis revenue grew 1.8%.
Total company shipments increased 1.9% over the third quarter last year to 1.1bn packages, led by US air products and European transborder shipments.
UPS said that the highlights for the quarter included completing the acquisition of truckload brokerage firm Coyote Logistics, which the company said will “create more than $100m of synergies”.
David Abney, UPS chief executive officer, said that the 3Q results reflected “strong progress” on the company’s long-term initiatives “despite uneven economic conditions”.
In the US domestic package business, revenue of $8.9bn was up 1.9% over the same quarter last year. Operating profit declined 1.6% to $1.3bn with an operating margin of 14.2%.
In the international package sector, operating profit was up 10% and the operating margin expanded to 17.1%. Daily Export shipments were up 1.2% compared to the previous year, and growth in Europe transborder and US inbound shipments outweighed a drop in Asia and U.S. exports.
Richard Peretz, UPS chief financial officer, concluded: “We are generating positive momentum as a result of the strong execution of our business units.
“This gives us confidence we will achieve the higher-end of our full-year earnings per share guidance.”
