Sunday, June 23, 2024
UPS profits remain strong despite natural disasters

UPS profits remain strong despite natural disasters

Profits in the third quarter dipped marginally for UPS with the US domestic package sector declining but international packages and supply chain & freight performing strongly.

Third quarter net profits were down 0.5 per cent to $1.26 billion, with operating profits remaining at $2 billion.

US domestic package operating profits were down 5.6 per cent to $1.18 billion due to one fewer operating days, on going initiatives including facility construction and deployment of Saturday operations, while natural disasters had an affect of about $50 million.

International packages were up by 8.9 per cent to $627 million with international domestic daily shipments increasing 5.7 per cent led by double digit growth across several European countries.

UPS says regulatory approval of UPS’s joint venture with SF Express, a small package carrier in China also being a highlight.

Supply chain & freight by 9.7 per cent to $226 million, with tonnage gains in Freight Forwarding, UPS Freight and Coyote Logistics contributing to top-line results.

UPS chairman and chief executive officer, David Abney says: “UPS produced another solid quarter of financial performance, despite the impact of several natural disasters that slowed regional economic activity and damaged infrastructure.”

“Our business segments adapted quickly to changing conditions this quarter, taking advantage of market opportunities while minimising cost and service disruptions from recent events.”

Net profits for the year up to 30 September rose 3.7 per cent to $3.8 billion, with operating profits up 2.4 per cent despite a slowdown for international packages.

Nine month US domestic package operating profit was up 1.8 per cent to $3.6 billion, international packages down by 1.4 per cent to $1.7 billion and supply chain & freight up by 18 per cent to $643 million.


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