UPS Sees Higher First-Quarter Results
UPS Inc. said its first-quarter earnings per share will increase to 53 cents, from 40 cents a year ago, while adjusted earnings will be 71 cents, up from 52 cents last year.
As a result of the strong earnings and an improved outlook for the remainder of the year, full-year adjusted earnings will be $3.05 to $3.30 per share, “a significant increase over the $2.70 to $3.05” guidance provided in February, UPS said late Wednesday.
First-quarter revenue rose 7%, led by increases of 18% in the international package unit and 14% in the supply chain and freight segment.
International daily volumes grew significantly with exports up more than 9%, while U.S. domestic daily volume rose less than 1%, the first year-over-year growth in more than two years.
“We expected the first quarter to be the most challenging of 2010 as the economic recovery gathered steam through the year,” Chief Financial Officer Kurt Kuehn said in a statement. “As it turned out, revenue was stronger than we expected due to international volume gains, increased yields in the U.S. and growth in forwarding and logistics.”
The results were issued two weeks earlier than scheduled; UPS said it would release more details during its first-quarter earnings call on April 27.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
