UPS Earnings Rise as Deliveries Increase

By Anne Steele 

United Parcel Service Inc. on Thursday reported better-than-expected earnings in the latest quarter as growth in domestic and international package delivery drove profit.

The company also said it expects its momentum to continue, and it backed its full-year guidance.

For the first quarter ended March 31, UPS posted earnings of $1.13 billion, or $1.27 a share, up from $1.03 billion, or $1.12 a share, a year earlier. Revenue rose 3.2% to $14.42 billion. Excluding currency impacts, revenue would have risen 3.7%.

Analysts had expected earnings of $1.22 a share on revenue of $14.57 billion.

In the domestic segment, profit rose an adjusted 7.6%. Daily shipments ticked up 2.8%, helped by strong demand from e-commerce shippers.

UPS said profit in the international segment grew 15%, helped by disciplined pricing, network efficiency and improved performance from all regions.

In the supply chain and freight segment, operating profit fell 2.6% on weak market conditions in the airfreight forwarding and less-than-truckload markets, though company's recent acquisition of Coyote Logistics boosted revenue.

UPS backed its 2016 guidance for earnings of $5.70 to $5.90 a share, a 5% to 9% increase over adjusted 2015 results.

Shares edged 0.4% higher premarket to $106.90.

Write to Anne Steele at [e-mail]

(END) Dow Jones Newswires

April 28, 2016 08:41 ET (12:41 GMT)

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