John Sommers II/Reuters
UPS Inc. reported a higher-than-expected quarterly net profit on April 27 as revenue grew across its domestic, international and supply chain and freight segments.
Often seen as a bellwether of U.S. economic activity, UPS said revenue increased to $15.315 billion in the first quarter from $14.418 billion in the year-ago period.
UPS ranks No. 1 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.
Revenue at the company’s domestic segment rose 5% to $9.535 billion from $9.084 billion a year ago, with the company saying e-commerce demand was strong.
The company said its domestic segment was affected by one-time costs of $50 million from a lag in a fuel surcharge, poor weather and damage from a facility fire.
Operating expenses rose 7.4% to $13.531 billion from $12.595 billion in the year-ago quarter.
Like other package delivery companies, UPS has benefited from a rapid rise in e-commerce, but has struggled to bring down the extra costs associated with making stops at individual residences rather than at businesses.
The Atlanta-based company posted first-quarter net income of $1.158 billion, or $1.32 per share, up 2.4% from $1.131 billion, or $1.27 per share, a year earlier.
Analysts, on average, expected earnings per share of $1.29.
UPS still expects full-year earnings per share between $5.80 and $6.10.
Shares rose 0.8% to $108.50 in pre-market trading.
| By Luciana Lopez Reuters |
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