UPS Profits Surge in First Quarter

Increased domestic and international freight volume and a shift to higher-priced express delivery services lifted United Parcel Service’s profits by 42% in the first quarter of 1999.

The Atlanta-based package carrier earned $499 million on revenue of $6.33 billion in the three months ended March 31. That compared with net income of $352 million on revenue of $5.86 billion in the same period a year ago.

"We saw impressive growth in our express products in most corners of the world," Chairman Jim Kelly said. "In the U.S., we continue to manage our operations extremely well in terms of service and cost, while focusing on the most profitable segments of business."

Domestic package revenue was $5.23 billion in the first quarter of 1999 vs. $4.9 billion in 1998. Volume increased 2.7% and operating profits rose 28.9% to $765 million from $594 million.

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