UPS increases revenue by 7pc

UPS increased revenue by seven per cent to $16 billion in the third quarter, though operating profit rose only marginally to $2bn.

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

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

Revenue increased in all segments and major product categories, as expanded customer demand spread across the company’s broad product portfolio.

“Our International segment continued its track record as a growth engine, generating strong top-line and operating-profit growth driven by robust demand for UPS solutions,” said Abney. “Export shipments grew across all regions as customers took advantage of UPS’s expanded portfolio and enhanced network.”

The Supply Chain and Freight segment produced record third quarter results with double-digit revenue growth and near double-digit operating profit expansion. Performance results were driven by revenue-quality improvements combined with structural cost-reduction programs.