UPS Third Quarter Profit Doubles
October 28, 2013
New third quarter financials from the parcel delivery and freight-hauling giant UPS, show it doubled its profit in the third quarter of the year, coming in at $1.1 billion, compared with $469 million a year earlier.
Revenue came in at $13.5 billion, up 3.4% over the same time last year.
The Atlanta-based UPS delivered more than one billion packages worldwide in the third quarter, an increase of 4.6% over the prior-year period. Daily package volume growth was led by international export and U.S. domestic ground, up 6.7% and 3.0%, respectively.
In the company’s supply chain and freight business, operating profit improved 7%, to $201 million and operating margin expanded 60 basis points, to 8.9%. Revenue in the segment was down slightly from the prior year period to $2.25 billion, as growth in UPS Freight was offset by declines in the forwarding business.
UPS Freight LTL revenue climbed 5.5% as a result of improved tonnage and rate increases. Operating margin for the business unit declined slightly, due to higher compensation and benefit expense.
More details are on the UPS website.