UPS Profit Falls, Old Dominion Earnings Grow 13.2%
Parcel delivery and trucking giant UPS has reported a lower first quarter profit despite higher revenue, while another major less-than-truckload player hit a record.
Parcel delivery and trucking giant UPS has reported a lower first quarter profit despite higher revenue, while another major less-than-truckload player hit a record.
UPS net income fell to $911 million, or 98 cents per share, in the first quarter compared to $1.03 billion, or $1.08 per share, a year earlier. Revenue improved 2.6% to $13.8 billion for the Georgia-based operation.
"Much of the U.S. economy was negatively affected by the severe weather conditions in the first quarter, resulting in lower UPS operating results versus the prior year," said Scott Davis, UPS chairman and CEO. "International and the supply chain and freight segment benefitted from positive momentum during the quarter as customers utilized the strategic investments made by UPS to strengthen our portfolio."
Supply chain and freight operating profit increased 3.5% to $148 million.
UPS Freight revenue increased slightly on a 3.1% increase in less-than-truckload revenue per hundredweight. Both tonnage and operating profit were negatively impacted by the severe winter weather, the company said.
U.S. domestic package revenue increased 2.6% over the prior-year period, to $8.5 billion. Daily volume improved 4.2%.
The segment generated $927 million in operating profit, down $158 million compared to the prior year, due also to the impact of severe winter weather. The company experienced lost revenue and additional cost as a result of significant network disruptions on more than half of the operating days during the quarter.
The international package segment revenue improved 5% and produced operating profit of $438 million, 12% more than the prior-year adjusted results.
"During the quarter, the momentum of the underlying business was masked by the disruption of inclement weather," said Kurt Kuehn, UPS chief financial officer. "We are encouraged by the positive trends in our business and expect the remainder of the year to perform as we originally guided. However, due to the challenging start to 2014, we anticipate diluted earnings per share to be at the low end of our full-year guidance range of $5.05 to $5.30."
More information is on the UPS website.
Meantime, Old Dominion Freight Line reports its revenue for the first quarter of 2014 was $620.3 million, an increase of 15.2% from $538.4 million for the first quarter of 2013.
Net income grew 13.2% to $45.9 million for the first quarter of 2014 from $40.6 million for the first quarter of 2013. Earnings per diluted share for the first quarter of 2014 rose 12.8% to 53 cents from 47 cents for the first quarter last year.
“Old Dominion achieved strong financial results for the first quarter of 2014, which included a company record for quarterly revenue despite the negative impact of the severe winter weather,” said David S. Congdon, president CEO. “Our revenue growth of 15.2% exceeded our expectations and resulted in the highest quarterly revenue that we have ever produced.”
For the first quarter, ODFL says it generated a 13.9% increase in LTL tons per day, which included an 11.9% increase in shipments and a 1.8% increase in weight per shipment.
Further details are on the Old Dominion Freight Line website.
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