United Parcel Service Inc. on Tuesday reported earnings that
came in better than expected as all three of its main segments saw
improved operating profit despite falling revenue.
"The strong momentum in our international segment is expected to
continue and gives us confidence in achieving the upper end of our
guidance range," Chief Executive David Abney said. The company
affirmed its full-year guidance.
For the June quarter, UPS posted earnings of $1.23 billion, or
$1.35 a share, up from $454 million, or 49 cents a share a year
earlier.
Revenue fell to $14.1 billion from $14.27 billion, partly
because of foreign-exchange rates.
Analysts had expected earnings of $1.26 a share on revenue of
$14.51 billion, according to Thomson Reuters.
Total company shipments increased 2.1% to 1.1 billion
packages.
In the domestic segment, revenue grew 1.6% to $8.81 billion.
Operating profit grew 3%.
Sales in the international segment fell 6.4% to $3.05 billion.
Operating profit increased 17% because of network improvements,
volume growth and pricing initiatives. The strong dollar also drove
U.S. imports higher.
In the supply and freight segments, revenue fell 4.5% to $2.24
billion. Operating profit improved 18%, driven by gains in its
forwarding segment.
Shares, down about 14% this year through Monday's close, rose
2.4% to $97.39 in premarket trading.
Write to Angela Chen at angela.chen@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires