UPS Reports Surprise Revenue Dip
27 Octobre 2015 - 1:40PM
Dow Jones News
United Parcel Service Inc. on Tuesday reported a surprise drop
in revenue, though growth in its international division helped
drive profit higher.
Shares of UPS, up 3.8% over the past year, fell 2.1% to $103.95
in premarket trading. The company backed its outlook for the
year.
For the quarter ended Sept. 30, UPS posted earnings of $1.26
billion, or $1.39 a share, up from $1.21 billion, or $1.32 a share,
a year earlier.
Revenue ticked down to $14.24 billion from $14.29 billion a year
earlier, hurt by lower fuel surcharge rates and currency impacts.
Excluding currency impacts, revenue would have risen 1.8%.
Analysts had expected earnings of $1.37 a share on revenue of
$14.43 billion, according to Thomson Reuters.
Total company shipments grew 1.9% to 1.1 billion packages, led
by U.S. air products and European transborder shipments.
In the domestic segment, profit fell 1.6% to $1.26 billion,
dragged by lower fuel-surcharge revenue. But daily shipments ticked
up 0.6%, helped by growth in air products.
Profit in the international segment grew 10% to $507 million,
helped by network improvements and a 1.2% increase in daily export
shipments.
In the supply chain and freight segment, operating profit
increased 1.9% to $219 million. The company's acquisition of Coyote
Logistics, which closed during the quarter, helped offset lower
forwarding revenue and a drop in less-than-truckload tonnage.
The results come as UPS heads into the holiday peak season, and
the company is working to keep its expenses in check. UPS has spent
about $200 million more than it expected the last two years, first
as its network was swamped with unexpected packages in 2013, and
then as packages spiked around Thanksgiving and Christmas last year
and left the network underused in between.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 27, 2015 08:25 ET (12:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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