Fuel Strategies Aid UPS Growth
Aggressive actions in the face of soaring fuel costs have kept profits growing for United Parcel Service (UPS), which announced a third quarter increase in net income of $125 million, or 22% over last year at this time.
For the three-month period this year, the company had net income of $702 million, or 60 cents a diluted share, on revenue of $7.37 billion.
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Robert Clanin, who will retire as chief financial officer in January, said the largest trucking company in the nation has managed a 90% compliance rate on its 1.25% fuel surcharge. The company has used the surcharge and hedging on the futures-options market to keep fuel costs at 3% of revenues for the quarter ended Sept. 30.
Clanin’s comments were part of an earnings conference call with financial analysts held Oct. 19 at corporate headquarters in Atlanta.
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