UPS reports strong growth in Q3

UPS has announced third quarter (Q3) diluted earnings per share of $1.73, up more than 20% on 2017.

There was a pre-tax charge to the business of $97 million for transformation costs that are designed to drive efficiencies into the enterprise and produce higher quality revenue growth.

“Our business strategies position UPS to improve operating leverage and many of our actions are already contributing to performance gains,” said UPS Chairman and CEO David Abney.  “We generated another quarter of industry-leading margins and strong free cash flow and we are confident in the outlook for the business.”

Amongst the highlights of the Q3 statement, international revenue increased in all regions on both a reported and currency-neutral basis. Export volumes grew nearly 3% in the quarter, though this should be leavened with the unusually strong growth UPS had in Europe in Q3 2017.

International segment revenue increased in all regions:

“Supply Chain and Freight performance was outstanding this quarter, as the unit delivered double-digit growth in both revenue and adjusted operating profit,” Abney said.  “UPS will continue to leverage our vast forwarding, customs, and supply-chain solutions to help customers expand their existing businesses and reach new markets.”

Regarding the company’s outlook Richard Peretz, UPS’s chief financial officer
said “Improvements in revenue quality and our new, highly-automated capacity gives us confidence in a successful peak season for our customers and share owners”.