UPS releases 3rd quarter results
Earnings at High End of Guidance Range UPS (NYSE:UPS) today reported diluted earnings per share of $0.55 for the third quarter on $11.2 billion in revenue. A stabilising economic environment led to improving volume trends during the quarter, while UPS’s International business continued to increase market share. The $0.55 in diluted earnings per share was at the high end of the company’s guidance range of $0.45 to $0.55. Consolidated volume for the three months ended Sept. 30, 2009, totaled 927 million packages, down 2.4% from the same period in 2008. Average daily volume and revenue per piece declined 3.9% and 11.3%, respectively. Operating profit decreased to $929 million as the benefits of substantial cost reductions and productivity gains were more than offset by the economic impact of lower volumes and changes in product mix. Cash Position Through effective management of capital expenditures and working capital, UPS generated an impressive $3.4 billion in free cash flow for the first nine months of 2009. The company also paid $1.3 billion in dividends, invested $1.2 billion in capital expenditures, repurchased 7.8 million shares at a cost of $396 million and ended the quarter with $2.8 billion in cash and short-term investments. |