UPS has seen its third quarter profit increase by 3.5 per cent to $1.2 billion despite revenue dipping by 0.4 per cent to $14.2 billion.
The company says the revenue fall was because of currency exchange rates and lower fuel surcharges. It says across the company, shipments increased by 1.9 per cent to 1.1 billion packages, because of US air products and European transborder shipments.
UPS chief executive officer, David Abney says: “Third quarter results reflect strong progress on our long-term initiatives despite uneven economic conditions. We remain committed to these strategies to support customers and improved shareowner value.”
Chief financial officer, Richard Peretz says: “We are generating positive momentum as a result of the strong execution of our business units. This gives us confidence we will achieve the higher-end of our full-year earnings per share guidance.”
Across the different areas, operating profits says mixed results. US domestic packages were down by 1.6 per cent to $1.3 billion, which UPS says is because fuel surcharge revenue fell faster than fuel related expenses. International operating profit increased by 10 per cent to $507 million, with European transborder growth and US inbound shipments outweighing drops in Asian and US exports. Supply chain and freight operating profit increased by 1.9 per cent to $219 million, despite UPS spending $20 million purchasing Coyote Logistics.
For the first nine months of 2015, UPS has seen profit increase by 36.2 per cent to $3.5 billion despite revenue dipping by 0.1 per cent to $42.3 billion. International packages saw the biggest fall in revenue, down 6.1 per cent to $8.9 billion. Supply chain and freight revenue was down by 1.1 per cent to $6.8 billion while US domestic packages were up by 2.5 per cent to $26.5 billion.