United Parcel Service Inc. (UPS), an industry leader in express delivery of letters, documents, and packages, has a long history in the United States and a growing presence abroad. The company's familiar brown delivery vans, a common sight on American city streets for decades, are becoming ubiquitous in foreign countries, too. Founded in 1907 as a private messenger and delivery service in Seattle, UPS now does domestic package delivery in all 50 states and cross-border deliveries to 200-plus countries.
Atlanta, Ga.-based UPS claims to be the world's largest package delivery company, in terms of revenue and volume, despite competition from such leading rivals as DHL and Federal Express (FDX). UPS is a domestic leader in the U.S. less-than-truckload shipment market and an international leader in supply chain management.
The company began 2011 with a ground fleet of nearly 100,000 delivery vehicles and more than 500 cargo aircraft, most of them based at its main air hub in Louisville, Ky. In 2010, UPS delivered an average of 15.6 million pieces per day worldwide and its revenue totaled $49.5 billion.
Europe is the company's biggest market outside the United States. UPS also claims to be the largest air cargo carrier in Latin America and the Caribbean. Among other moves to expand internationally, UPS set up a joint venture in Dubai in 2009 and created or expanded partnerships with affiliated delivery companies in Vietnam, Malaysia, and Indonesia in 2010.
Though annual revenue essentially has moved sideways since 2006, business was picking up as 2011 began. First-quarter net income jumped to $885 million, up 66 percent from the same period last year. Revenue in the January-March period totaled $12.5 billion, up 7.3 percent from the same period in 2010.
In early June, most analysts following United Parcel had buy ratings on its stock. Zacks Investment Research reiterated a buy rating on the stock in a June research report, noting that the UPS "is a strong brand-name company that should continue to benefit from an increase in global economic activity."
© 2017 Newsmax Finance. All rights reserved.