UPS earnings news from WSJ.
October 15, 1999
UPS Reports 29% Growth in Profit
As International Operations Rebound
Dow Jones Newswires
ATLANTA -- United Parcel Service of America Inc. Friday posted sharply
higher net income as international operations regained ground lost amid the
global economic downturn.
The closely held package-delivery company said third-quarter earnings jumped
29% to $577 million, or $1.03 a share, from $449 million, or 81 cents a share,
a year earlier.
Revenue increased 9% to $6.72 billion from $6.16 billion.
UPS, which expects to launch an initial public offering in the fourth quarter,
said international operating results helped deliver the bottom-line gain. The
company's overseas operations posted a profit of $38 million, compared with a
loss of $15 million a year ago.
In the U.S., domestic package operating earnings rose 16% to $879 million for
the period from $757 million a year ago. Domestic package revenue rose 8.3%
to $5.57 billion in the third quarter, from $5.15 billion last year. The company
said the increase reflected a 6.8% average daily volume gain, improved product
mix and higher revenue from each piece.
International package revenue rose 10% to $862 million from $782 million a
year ago. International export volume packages rose 22%, the company said.
UPS said third-quarter revenue from nonpackage operations rose 22% to 279
million from $229 million. Operating profit from the segment fell to $27 million
for the period from $35 million.
The nonpackage operations segment includes United Parcel's UPS Logistics
Group.
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