UPS says 3Q profit up nearly 9%

user-gravatar

UPS Inc., the world’s largest shipping carrier, reported Thursday, Oct. 19, that its profit rose 8.9 percent in the third quarter. The Atlanta-based company said it earned $1.04 billion for the three months ended Sept. 30, an 8.9 percent increase from $953 million for the same period a year ago. Revenue rose 10.5 percent to $11.66 billion, up from $10.55 billion a year earlier.

For the first nine months of the year, UPS earned $3.07 billion, compared to a profit of $2.82 billion for the same period a year ago. Nine-month revenue rose 14 percent to $34.92 billion from $30.63 billion a year earlier.

UPS said third-quarter daily ground revenue increased 5.5 percent, while average daily volume for next-day air rose 4.9 percent. Total international package revenue grew 17.4 percent, UPS said.

The company also said it is taking significant steps to improve the profitability of its forwarding and logistics business, confirming it will eliminate 20 percent of the nonoperating expense in the business unit.

“UPS is moving forward with confidence,” said Mike Eskew, chairman and chief executive officer. “Our small package business continues to show strength across all segments, and we are taking the steps necessary to put our supply chain business on the right track after a disappointing performance.”