UPS reports strong first quarter
UPS announced an extremely promising first quarter of 2011, with 24 percent higher earnings than 2010 averages. The company also saw improvements in international exports, citing a 7.2 percent increase in daily capacity.
Another area of growth for UPS was international revenue. With 7.3 percent higher numbers than the previous year, UPS global operating profits saw a 21 percent jump, reaching $1.4 billion.
A key factor in UPS’ international growth was the recent addition of four direct flights from Hong Kong to Europe. UPS said that it can now perform next-day delivery of both packages and heavy cargo to this important trade route.
UPS’ diluted earnings per share and operating profits also soared during the first quarter, rising by 66 percent and 37 percent, respectively. What’s more, the company transported 957 million packages during the three-month time period and increased its operating margin by 130 basis points.
Given the current economic situation, these numbers are especially impressive, UPS Chairman and CEO Scott Davis said. “UPS produced strong first quarter results despite rapidly rising fuel costs and challenging weather conditions,” he said in a statement. “Once again, we demonstrated the strength of our global portfolio and ability of our integrated operating model to further expand margins.”
Davis is not alone in his sentiments: A recent BB&T Capital Markets analysis attributed much of UPS’ first-quarter success to its ability to contain costs and “[push] across price increases to customers across all business segments.”