UPS announced today, April 27, that it posted adjusted diluted earnings per share of $0.71 for the first quarter of 2010, a 37 percent gain over the adjusted $0.52 for the prior-year period. Revenue increased 7 percent to $11.7 billion. Growth in the international package and supply chain businesses, yield improvement and increased operating leverage resulted in margin expansion in all business segments.
On a reported basis, diluted earnings per share were $0.53 compared to $0.40, a 33 percent improvement. Profit rose to $533 million from $401 million.
“UPS’s global strategy clearly proved beneficial in the first quarter,” said Scott Davis, chairman and chief executive officer. “Our broad product portfolio and solutions-based approach to customers’ logistics needs enabled the company to capture new business. In addition, our worldwide integrated network generated significant margin expansion. With global economies showing signs of recovery and UPS’s strong start to 2010, we are optimistic about this year and the future.”
UPS achieved significant operating leverage in an improving global economic environment, said Kurt Kuehn, chief financial officer. “In the first quarter, we realized the benefits from the hard work we have been doing to streamline our operations,” Kuehn said. “First-quarter results exceeded our expectations and set a strong foundation for the rest of 2010. We expect first-quarter trends to continue through the year, producing revenue growth and additional operating leverage.”
Kuehn said that going forward, UPS is determined to sustain enhancements to its cost structure. “We’ll continue to invest for the future while remaining focused on disciplined, profitable growth,” he said. “We’re very confident that our diversified, global product portfolio will help us capitalize on the growth opportunities ahead.”
