Q1 revenue at UPS grows 16.5% over Q1 2005

First quarter revenue at package delivery company UPS grew 16.5% over Q1 2005 to $11.5 billion and net income was up 10.5% to $975 million, the company reported today. Small-package delivery volume increased 9%, or 1.24 million packages per day.

In the U.S., revenue grew 9.6% over Q1 a year ago to $7.5 billion, and volume grew 6.8%, or 848,000 packages a day.

The company said product growth was paced by a 9.3% increase in Next Day Air volume and a 10.8% increase in deferred air volume. Average daily ground volume rose 6.2%, or almost 650,000 packages per day.

In its international markets, revenue grew 17.3% to $2.16 billion and volume grew 29.1% to 1.7 million packages per day.

On the supply chain and freight side, revenue grew 53.9% to $1.9 billion, driven primarily by acquisitions, while operating profit declined $34 million due to the integration of the former Menlo Worldwide Forwarding unit.

“This was a quarter of outstanding growth that resulted in strong returns and excellent cash flow,” said Mike Eskew, UPS chairman and CEO. “To drive future results, we will continue to invest in our network, technology and products to bring even more value to the customer.”