UPS More Than Doubles 3Q Income
Parcel carrier UPS Inc. said its third-quarter net income grew by 133%, primarily due to growth in e-commerce shipments in the United States and increased exports from Europe.
UPS, based in Atlanta, saw a $1.1 billion profit in the quarter, or $1.16 per share, compared with $469 million, or 48 cents, in the same quarter in 2012, the company said Oct. 25. Revenue grew 3.4% to $13.5 billion.
After adjusting for a $559 million charge related to restructuring some employees' pensions, the company's 2012 third-quarter profit was $1.03 billion, or $1.06 a share, and the 2013 quarter would represent a 6.7% increase in net income.
“UPS is continuing to build global capabilities that position the company to meet the evolving supply chain needs of customers,” Chairman and CEO Scott Davis said in a statement.
UPS also said it expects Dec. 16 to be the busiest day of the year, when it will pick up 34 million packages globally. Volume for the holiday season will increase 8% this year over last, UPS predicted.
Revenue in the UPS Freight less-than-truckload unit climbed 5.5% in the third quarter, due to improved tonnage and rate increases, UPS said. In the segment that includes LTL and supply chain services, operating profit was $201 million, a 7% gain.
Volumes in both the United States and international package-delivery segments grew, the company said.
UPS also reiterated its earnings forecast for the entire year, which it said would be $4.65 to $4.85 per share.
UPS ranks No. 1 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
