Monday 30 April 2012

UPS 1Q profit rises 6%


United Parcel Service (UPS) last week reported first-quarter net income of $970 million, up 6% from a net profit of $915 million in the year-ago period, on a 4.4% increase in revenue to $13.14 billion.
Expenses rose 4.1% year-over-year to $11.57 billion and operating profit was $1.57 billion, up 6.6%. Air-intensive international package revenue heightened 2.3% to $2.97 billion while US domestic package revenue increased 6.1% to $8.01 billon.
“Continued weakness out of Asia and increased intra-regional volumes … negatively impacted yield growth,” UPS said in a statement.
The company said it is making a Latin America push, increasing cargo capacity more than 50% on 20 weekly flights in the region during the year’s first three months. It also established a regular flight to Guadalajara.
“UPS delivered earnings growth in line with our expectations, driven by the results of the US domestic and supply chain and freight segments,” CFO Kurt Kuehn said. “We remain confident in our previous guidance for 2012 diluted earnings per share of $4.75 to $5.00, an increase of 9% to 15% over 2011 adjusted results.”
Article Source : ATW Daily News

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