UPS – record international profit increase

International logistics and delivery company UPS has announced its international operating profit increased by 14% to US $567 million in the third quarter of 2016, which makes it the seventh consecutive quarter of double digit growth for UPS.

For UPS as a whole, total reported revenue was US$14.9 billion and this was up 4.9% over Q3 2015. However changes in fuel surcharges and currency exchange rates brought the revenue growth down. On a currency neutral basis, revenue actually increased by 5.1%.

David Abney, UPS chairman and CEO, commented: “The investments we are making in technology and capacity will ensure UPS continues to deliver great results well into the future.”

Richard Peretz, UPS chief financial officer, added: “Through the third quarter we are performing according to our expectations, and we’ve taken the necessary steps to ensure we capitalize on record volume levels during peak season.

“As a result, we remain confident in achieving our 2016 full-year guidance for adjusted diluted earnings per share.”

UPS US domestic revenue was up 4.8% on Q3 2015, reaching $9.3bn. Average daily package volume increased by 5.7%. For this element of UPS, operating profit was $1.3 billion and the operating margin was 13.5%.

International operating profit jumped 14% to $576m and was a record for any third quarter in UPS history.  Volume growth in all products, base-rate increases and network efficiency gains contributed to the improved profitability. Revenue was $3.0bn, up 2.2% on Q3 2015.

Supply Chain and Freight revenue increased 8.1%, to $2.6n.  Revenue growth was primarily due to the Coyote Logistics acquisition midway through the third quarter last year.
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