UPS delivers Q3 earnings growth across all market segments
UPS posted $12.21 billion in revenue for the third quarter of 2007, a 4.7% increase compared with $11.66 billion in the prior year quarter, the company reported today. Net profit was $1.71 billion, up 8% from $1.58 billion in Q3 2006.
Domestic package business revenue was up 2% for the third quarter ended Sept. 30, 2007, from $7.4 billion in Q3 2006 to $7.55 billion. U.S. package market profit was $1.23 billion, up 1.7% compared with $1.21 billion in the prior year quarter.
Daily U.S. average package volume rose less than 1% to 13.4 million from 13.3 million a year earlier. U.S. volume represented about 88% of UPS’s total global average daily package volume of 15.25 million.
International revenue was $2.53 billion, a 12% increase compared with $2.25 billion in Q3 2006. International package business profit was up 11% to $428 million from $387 million. UPS moved an average of 1.84 million packages per day in the global sector, up 4% from 1.77 in the prior year quarter.
The company’s freight and supply chain segment revenue rose 6%, from $2.01 billion in Q3 2006 to $2.13 billion. Third quarter earnings in this segment were $52 million compared with a loss of $19 million in the prior year quarter.
“Once again, UPS’s balanced network around the globe produced solid results even in the face of a lackluster U.S. economy,” says Scott Davis, vice chairman and chief financial officer. “Fourth quarter results will be driven by good performance in our international operations and further gains in supply chain and freight. We expect slowing retail sales will restrain U.S. domestic volume growth.”
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