UPS first quarter profits increase by 10%

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UPS has seen first quarter profits increase by 10.2 per cent to $1.1 billion with growth in all business areas except supply chain & freight.

The company saw the net profit increase from $1 billion in the first quarter of 2015 and operating profit was up by nine per cent to $1.8 billion. Among the different business areas, US domestic package had the highest operating profit at $1.1 billion, up 7.6 per cent, helped by growth in e-commerce. International packages saw an increase of 15.3 per cent to $574 million, with network efficiency helping the result, and growth out of Europe and Asia offsetting declines in US exports. Supply chain & freight dipped by 2.6 per cent to $147 million because of weakness in the air freight forwarding market.

UPS chairman and chief executive officer, David Abney says: “We continue to execute well in all areas of our long-term enterprise strategy. The combination of revenue growth and benefits from our accelerated investments generated strong financial results in the quarter.”

Revenue in the quarter increased by 3.2 per cent to $14.4 billion, with supply chain & freight seeing the most growth and international package declining. US domestic package revenue increased by 3.1 per cent to $9 billion, international package was down 1.9 per cent to $2.9 billion and supply chain & freight was up 10.4 per cent to $2.4 billion. Supply chain revenues were helped by acquiring Coyote Logistics.