Third quarter profits at UPS were up 13.7% to $1.8 billion with the US Domestic and International segments driving growth.
Both the sectors recorded double digit increases in operating profits but the Supply Chain and Freight segment was down slightly due to trade uncertainty.
Volumes on the US Domestic segment were up 9%, with Next Day Air increasing 24%, Deferred Air by 17% and Ground volumes by almost 7%, with growth from B2C and B2B shippers in the retail, healthcare and high-tech sectors.
Revenue grew almost 10% to $11.4 billion and adjusted operating profits by 26% to $1.2 billion.
David Abney, chairman and CEO of UPS says: “The investments we are making in new facilities and automation in our network, coupled with solid execution of our strategies, are producing strong results, including strong, positive operating leverage.”
The International segment saw operating profits grow by 20.3% to $693 million, with export volumes rising on intra-European trade lanes and across most of Asia except to the US.
Supply Chain and Freight revenue was down to $3.3 billion and adjusted operating profit went from $260 million to $256 million.
Commenting on the whole company’s performance, Abney says: “Our results reflect significant progress from our transformation initiatives, and our ability to generate growth and deliver increased efficiencies in a dynamic economic environment. As we recently announced, we continue to forge new partnerships and create innovative solutions to accelerate growth in the most attractive opportunities.”