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Thursday, 25 April 2013

UPS announce 2.2% increase in Q1 earnings

UPS announced their first quarter results this afternoon, citing a better than expected post-Christmas season and the surge in e-commerce as contributing factors to their 2.2% growth in revenue. Operating profit also increased by $100 million compared to the first quarter of 2012. The courier company delivered an average of 16.2 million packages per day in the January-March 2013, an increase of 4.1% on the previous year.

File:UPS UK Mercedes Sprinter.jpg
Image c/o UPS

The U.S. Domestic operation saw the greatest increases in revenue ($267 million) and operating profit ($90 million) of all branches of the organisation. International operations saw slight increases in revenue and average daily volume along with a 14% decrease in operating profit from $408 to $352 million. The Supply Chain and Freight branch of the business increased revenues by $200 million while profits fell by $20 million to $143 million. UPS cited overcapacity in trans-Pacific trade lanes as the reason for the decrease. 

UPS Chief Financial Officer Kurt Kuehn commented, "January started strong [and] the pace of growth for the remainder of the quarter was in line with our expectations." 

Source: UPS

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