Tags: Earns | UPS

UPS Profit Rises 5 Percent, Keeps Year View

Tuesday, 25 Oct 2011 09:45 AM

UPS is holding onto its earnings expectations for the full year after reporting a 5 percent increase in third-quarter earnings.

The world's largest package delivery company said Tuesday improvement in its supply chain and freight business in the U.S. is offsetting a slowdown in the once red-hot business of shipping gadgets and other expensive goods from Asia. But higher prices and fuel surcharges boosted results across all of its units.

UPS still expects to earn between $4.15 and $4.40 per share this year. Analysts polled by FactSet Research currently predict $4.23 per share.

In the three months ended Sept. 30, the Atlanta company earned $1.04 billion, or $1.06 per share, compared with $991 million, or 99 cents per share, a year earlier.

Revenue rose 8 percent to $13.17 billion. Freight segment revenue rose 5 percent and U.S. domestic package revenue was up 7 percent. Despite slowing growth, international package revenue still rose 14 percent.

That was mostly due to higher prices and fuel surcharges. Operating profit in its international segment fell 2.4 percent. Operating profit also fell at the company's core U.S. package business, but rose 10 percent for supply chain and freight.

United Parcel Service Inc. made more money from its fuel surcharge plan in the quarter as oil prices fell rapidly. In times when prices are falling quickly, UPS — which charges customers a surcharge based on the price of oil — benefits because the charge lags actual prices by about two months.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 
1Like our page
2Share
Companies
UPS is holding onto its earnings expectations for the full year after reporting a 5 percent increase in third-quarter earnings.The world's largest package delivery company said Tuesday improvement in its supply chain and freight business in the U.S. is offsetting a slowdown...
Earns,UPS
243
2011-45-25
Tuesday, 25 Oct 2011 09:45 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved