UPS Earnings Rise 13% to $1.03 Billion
UPS Inc. raised net income 13% to $1.03 billion, or $1.12 per share, in the first quarter as profitability improved in the package, international and supply chain units.
Revenue rose 1.4% to $14 billion, up 1.4%. Last year’s first-quarter earnings were $911 million, or 98 cents.
“We are on track for our long-term financial initiatives,” said CEO David Abney, who reaffirmed the company’s full-year forecast that earnings could rise as much as 12% on a per-share basis. “The first-quarter results were favorably impacted by our continued investments and revenue management initiatives.”
Shipments on a companywide basis rose 2.8% at the Atlanta-based company that ranks No. 1 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
Domestic package, the largest unit, raised profit before interest and taxes 11%, driven by rate increases and pricing structure changes. Revenue rose 3.8% to $8.8 billion. International package profit on that basis was 14% higher at $498 million, and revenue climbed 2.4% to $3 billion.
The unit that includes UPS Freight and supply chain services showed 6.9% higher profit at $151 million, with 1.3% higher revenue of $2.2 billion. Revenue increased 2.3% at UPS Freight, helped by higher rates.
