UPS reports record Q1 results

International delivery company UPS has announced that it has achieved “record first quarter results” that were “driven by both the U.S. Domestic and International small package segments”.

Total revenue was $14.4bn, up 3.2% over the same quarter last year – despite growth being slowed by lower fuel surcharges and currency exchange rates.

US Domestic operating profit increased 7.6% to $1.1bn, and revenue increased 3.1% to $9.1bn.

International operating profit jumped by more than 15% to $574m, although revenue was down by 1.9%.

Supply Chain and Freight revenue increased by more than 10% to $2.4bn, which UPS said was “mainly due to the acquisition of Coyote Logistics in the third quarter of last year”.

Commenting on the results, David Abney, UPS chairman and CEO, said: “We continue to execute well in all areas of our long-term enterprise strategy.

“The combination of revenue growth and benefits from our accelerated investments generated strong financial results in the quarter.”

UPS has been having a good year, despite it being unable to prevent its next rival FedEx from buying TNT in the last few months. This growth in revenues should outstrip that of FedEx and TNT as when the merger begins there will be significant turbulence in the new organisation and this will impact its ability to win and retain new business for a considerable period while its internal structures and systems are being sorted out. For UPS it really is a case of making hay while the sun shines, and for the moment it can focus on revenue growth at the expense of FedEx TNT.