UPS Profits Rise on Higher Shipments
29 Juillet 2016 - 3:00PM
Dow Jones News
United Parcel Service Inc. on Friday reported profit rose 3.2%
in the latest period, though higher fuel costs cut into climbing
revenue from its U.S. and international package deliveries.
UPS has been trying to make e-commerce as profitable as its
traditional business-to-business deliveries. It posted some success
in the first quarter as it sought to increase profitability by
investing in software to improve delivery routes, among other
changes.
Oil prices rose during the latest quarter, and UPS said lower
fuel surcharges in the quarter hurt results. The company's fuel
surcharges are typically tacked onto shipments to cover that cost,
but they lag rising fuel prices by a couple months.
Revenue rose 2.4% in the U.S. package segment and 1.1% in the
international package segment. Average daily shipments in the U.S.
increased 2.5%, helped in part by solid performance in its next-day
air service. Supply chain and freight revenue increased 13%, helped
by last year's acquisition of Coyote Logistics.
Over all for the June period, UPS posted earnings of $1.27
billion, or $1.43 a share, compared with $1.23 billion, or $1.35 a
share, a year earlier. The per-share figure was helped by a lower
share count in the latest period.
Revenue increased 3.8% to $14.63 billion. On a currency-neutral
basis, revenue rose 4%, UPS said.
Analysts had expected earnings of $1.43 a share on revenue of
$14.63 billion.
UPS backed its earnings guidance of $5.70 to $5.90 a share.
Shares edged 0.5% higher premarket to $109.25.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
July 29, 2016 08:45 ET (12:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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