Tags: united parcel service | ups | earnings | profit

UPS Profit Rises on Strong Demand, Beats Analysts' Expectations

Friday, 24 Oct 2014 08:13 AM

Robust U.S. consumer and business demand plus strong growth in Asia drove a higher-than-expected quarterly profit at package delivery company United Parcel Service Inc.

Atlanta-based UPS also confirmed its full-year profit outlook, predicting earnings per share of between $4.90 to $5.00.

UPS, the world's largest shipping company, and its main rival, FedEx Corp., both considered U.S. economic bellwethers, are heading into their busiest season of the year as the U.S. holidays approach. Last year a last-minute surge in online consumer promotions caused many packages to remain undelivered on Christmas Eve.

The problems especially affected UPS, which has invested $500 million to boost its infrastructure to handle the holiday season this year.

"We expect another robust peak season and are confident our network is prepared to operate at the highest level," UPS Chief Financial Officer Kurt Kuehn said in a statement.

UPS reported earnings per share of $1.32, up 14 percent from $1.16 a year earlier. Analysts expected $1.28 per share.

UPS posted revenue of $14.29 billion for the quarter, up 6 percent from $13.52 billion in the same quarter in 2013. That came in slightly above analysts' estimates of $14.2 billion.

In premarket trading, UPS shares were 1.4 percent at $101.90.

© 2017 Thomson/Reuters. All rights reserved.

 
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United Parcel Service Inc. reported a better-than-expected quarterly profit on Friday, driven by growing demand, improving margins in the United States and strong growth in Asia and Europe.UPS, the world's largest shipping company, reported earnings per share of $1.32, up 14...
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2014-13-24
Friday, 24 Oct 2014 08:13 AM
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