April 26, 2011, 4:54 PM

Domestic package volume dips at UPS

But U.S. next-day air shipments increase as revenue and operating profit rise.

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UPS, a major provider of shipping services to online retailers, said today the average daily U.S. package volume it handled during the first quarter ended March 31 fell by 0.47%. But package volume in its U.S. Next Day Air service grew at a “mid-single-digit rate” in the quarter, as U.S. domestic package revenue climbed 6.2% and operating profit increased 51.1%, the company said.

UPS also reported for Q1 U.S. domestic package operations:

● Average daily package volume fell 0.47% year over year to 12.67 million from 12.73 million packages;



● Revenue rose 6.2% year over year to $7.54 billion from $7.10 billion;

● Operating profit rose 51.1% year over year to $849 million from $562 million. UPS said that, on an adjusted basis, operating profit increased 29.0% to $849 million from $660 million. The company noted that it had incurred unusual expenses in the year-ago quarter related to reorganization expenses and other matters.

For international package operations, UPS reported:

●  Average daily package volume increased 4.1% year over year to 2.29 million from 2.20 million packages;

●  Revenue increased 9.8% to $2.90 billion from $2.64 billion, and operating profit rose 4.4% year over year to $446 million from $427 million.

For consolidated operations, including supply chain and freight operations as well as domestic and international package delivery operations, UPS reported:

● Total revenue increased 7.2% year over year to $12.58 billion from $11.73 billion;

● Total operating profit rose 37.5% to $1.43 billion from $1.04 billion. On an adjusted basis, after factoring in the unusual year-ago expenses, UPS reported a 21.2% year-over-year rise in operating profit to $1.43 billion from $1.18 billion.

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