UPS CFO: Company may consider ‘extremely large acquisition’

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UPS Inc.’s strong first-quarter results have put the company in a good position to make acquisitions, Chief Financial Officer Scott Davis said Thursday, April 20 during the Atlanta carrier’s first-quarter earnings conference call.

Citing cash flow of $1.9 billion for the quarter, Davis said the company’s first priority will be “reinvestment in the business, including acquisitions.” He said that UPS is in a position to do an “extremely large acquisition if it makes strategic sense for the company.” Last August, UPS completed the acquisition of Overnite Corp. for about $1.25 billion.

Small package delivery in particular drove first-quarter earnings of $975 million, up from $882 million in the year-ago period. Small-package delivery volume was up 9 percent, or an additional 1.2 million packages per day over volume in the same quarter last year. “The growth of the U.S. small-package market continues to outpace the economy,” Davis said.

Retail package deliveries were good in January, and a little weaker in February and March, Davis said. The business-to-consumer market is strong and is helping boost the small package market, he said.