UPS Earnings Rise as Deliveries Increase
April 28 2016 - 8:56AM
Dow Jones News
By Anne Steele
United Parcel Service Inc. on Thursday reported
better-than-expected earnings in the latest quarter as growth in
domestic and international package delivery drove profit.
The company also said it expects its momentum to continue, and
it backed its full-year guidance.
For the first quarter ended March 31, UPS posted earnings of
$1.13 billion, or $1.27 a share, up from $1.03 billion, or $1.12 a
share, a year earlier. Revenue rose 3.2% to $14.42 billion.
Excluding currency impacts, revenue would have risen 3.7%.
Analysts had expected earnings of $1.22 a share on revenue of
$14.57 billion.
In the domestic segment, profit rose an adjusted 7.6%. Daily
shipments ticked up 2.8%, helped by strong demand from e-commerce
shippers.
UPS said profit in the international segment grew 15%, helped by
disciplined pricing, network efficiency and improved performance
from all regions.
In the supply chain and freight segment, operating profit fell
2.6% on weak market conditions in the airfreight forwarding and
less-than-truckload markets, though company's recent acquisition of
Coyote Logistics boosted revenue.
UPS backed its 2016 guidance for earnings of $5.70 to $5.90 a
share, a 5% to 9% increase over adjusted 2015 results.
Shares edged 0.4% higher premarket to $106.90.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
April 28, 2016 08:41 ET (12:41 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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