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A strong international performance helped overall revenue climb 8%.
Parcel delivery company United Parcel Service of America Inc. reported its overall package volume increased 0.7% in the third quarter of 2011 compared with a year ago. U.S. volume was flat, which UPS attributes to the slow economy. International volume increased 4.5%.
For Q3 ended Sept. 30, UPS reported:
• Average daily package volume increased 0.7% to 15.1 million, up from 15.0 million a year ago.
• Revenue of $13.17 billion, an increase of 8.0% from $12.19 billion a year ago.
• Net income of $1.04 billion, up 4.9% from $991 million a year ago.
UPS’ U.S. package operation reported for Q3:
• Average daily volume of 12.74 million compared with 12.73 million a year ago, a 0.08% increase.
• U.S. next-day package volume increased 1.7% to approximately 1.20 million a day from 1.18 million a year ago. The average next-day air package cost to shippers jumped 7.0% from $19.40 to $20.75.
• Revenue of $7.77 billion vs. $7.29 billion a year ago, a 6.6% increase.
UPS’ international package operation reported for Q2:
• Average daily volume of 2.3 million vs. 2.2 million, a 4.5% rise.
• Revenue of $3.06 billion compared with $2.68 billion a year ago, up 14.2%.
For the first nine months of 2011, UPS reported:
• Average daily package volume of 14.99 million compared with 14.90 million a year ago, a 0.6% increase.
• U.S. next-day package volume was flat, while the average next-day air package cost to shippers increased 6.7% to $20.61 from $19.31.
•Revenue of $38.94 billion compared with $36.12 billion a year earlier, a 7.8% increase.
• Net income of $2.99 billion compared with $2.37 billion a year earlier, a 26.2% increase.
“UPS produced another solid quarter of earnings against the backdrop of a deceleration in exports from Asia and a challenging global economic environment," says CEO Scott Davis. "The resilience of our global model was evident during the quarter and we remain confident in our ability to perform in both good and bad economies.”
The company also revealed that more than 100,000 consumers have signed up for its UPS My Choice shipping program, which UPS launched in early October. The program lets consumers receive electronic alerts about when their packages will arrive. For a fee, consumers can request a two-hour delivery window.