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UPS First Quarter Profit Tops $1 Billion

April 28, 2015

By Evan Lockridge

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U.S. domestic package first quarter revenue increased 3.8% as daily package volume improved 2.4%. Photo: UPS
U.S. domestic package first quarter revenue increased 3.8% as daily package volume improved 2.4%. Photo: UPS

Profit for package delivery and trucking giant UPS Inc. increased 12.6% in the first quarter of the year versus the same time in 2014.

Net income totaled $1.03 billion, or $1.12 per diluted share, in the most recent period compared to $911 million, or 98 cents per diluted share a year earlier.

Total reported revenue of $14 billion was up 1.4% over the same quarter last year. Revenue growth was 3.6% after adjusting for foreign currency changes, according to the company.

"The first quarter results were favorably impacted by our continued investments and revenue management initiatives," said David Abney, CEO. "These actions delivered high value to our customers and shareowners. We are on track to achieve the company's long-term financial targets."

Total company shipments increased 2.8% to 1.1 billion packages, led by European export growth of 9.4%.

Revenue in UPS’ Supply Chain and Freight operation increased 1.3% to $2.2 billion, driven by growth in distribution and UPS Freight.

UPS Freight revenue was up 2.3%, resulting from gains in less-than-truckload and ground freight pricing products. Lower fuel surcharges weighed on the revenue growth rate. LTL shipments per day increased 3.5% over the prior-year period.

U.S. domestic package first quarter revenue increased 3.8% to $8.8 billion. Daily package volume improved 2.4%. Total revenue per package was up 1.3%, primarily due to UPS Ground yield increasing 3.1%.

"Solid performance across all three business segments was led by positive momentum in international, gains from revenue management and productivity improvements in the U.S.," said Kurt Kuehn, chief financial officer. "We remain on plan to meet our guidance for full-year 2015 diluted earnings per share of $5.05 to $5.30, a 6% to 12% increase over our 2014 adjusted results."

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