UPS achieves record profits and revenues
UPS has announced record quarterly profits in its latest financial figures released last week. Revenues jumped to US$8.93 billion (€7.14bn), up 8.2% from the same period in 2002. In the full year, revenue increased by 7.1% to a record US$33.5 billion (€26.8bn), while operating profit rose 8.5% to US$4.45 billion. This translates to an operating margin of 13.3%.
All three of its operating divisions performed strongly. U.S. package revenue rose by 7% to US$6.66 billion and operating profits rose 9.6% to US$911 million. Margins improved to 13.7%.
International package revenue rose 17% to US$1.52 billion whilst its operating profit for this segment increased 56% to US$241 million. Operating margin reached 15.9%, the highest operating margin ever achieved by this segment.
The non-package segment saw operating profit rise 27% to US$121 million. Although UPS does not break out its profit figures for UPS Supply Chain Solutions, its full year revenues exceeded $2 billion for the first time. In the quarter, the UPS Supply Chain Solutions business unit signed a number of new contracts which the company states will positively impact revenue growth in the first quarter.
