UPS today reported a 4% increase in first quarter revenues as a result of the continued rapid growth of its international and logistics businesses and a smaller increase in its core U.S. air and ground businesses. For the three months ended March 31, 2001, revenues totaled $7.5 billion, up 4% compared to the $7.2 billion reported for the same period a year earlier. Consolidated operating profits declined 11.5% during the period to $944 million. Adjusted net income totaled $582 million.
UPS`s international export volume grew 17%, led by Europe with a 25% increase. The rapidly expanding logistics business showed a 45.5% rise in revenues. In the United States, volume for the company`s premium express product, UPS Next Day Air, grew 3.3%. Total average daily volume within the United States rose 1.3%, while consolidated worldwide daily volume rose 2% to 13.4 million. During the period, revenues for U.S. domestic package operations rose 2.3%, to $6 billion; revenues for international package operations rose 7.4%, to $1.1 billion, and revenues for non-package operations rose 22.2% to $435 million, led by the gain in UPS Logistics Group revenues.
The company said a number of factors contributed to the company`s earnings decline, including higher utility costs, reduced international cargo demand and one less working day. It said the weakening U.S. economy was the most important cause. "We were pleased that UPS maintained its growth across all product segments, particularly our international and domestic express businesses," said Jim Kelly, UPS chairman and CEO. "However, the economy did slow much faster than we expected and we were not satisfied with our earnings performance.”