Parcel delivery company United Parcel Service of America Inc. today reported a 3.9% decline in average daily package volume for the third quarter vs. a year ago and a 15% decline in revenue and a 43% drop in net earnings.
For Q3 UPS reported:
- average daily package volume of 14.26 million vs. 14.85 million a year ago. Q1 average daily package volume was 14.53 million; Q2’s was 14.28 million
- revenue of $11.15 billion vs. $13.11 billion a year ago
- net income of $549 million vs. $970 million a year ago.
- average daily package volume of 14.36 million vs. 14.98 million a year ago
- revenue of $32.92 million vs. $38.79 million a year earlier, a drop of 15.1%
- net income of $1.39 billion vs. $2.75 billion a year earlier, a decline of 49.3%
UPS’s U.S. package operation reported for Q3:
- average daily volume of 12.29 million, down 5.1% from 12.95 million.
- revenue of $6.87 billion vs. $7.84 billion a year ago, down 12.4%
- operating profit of $514 million, half of last year’s $1.12 billion.
“The business environment in the third quarter began similarly to that of the preceding quarter. However, we did see profitability improvement due to effective cost management and firming volume later in the quarter,” says Kurt Kuehn, UPS’s chief financial officer. “UPS is poised for the recovery when it comes. We’ve instituted cost initiatives that will approach $1.4 billion this year, making UPS more efficient than ever. In addition, we will reduce our 2009 capital expenditures to $1.7 billion, down $500 million from our initial budget.”