UPS Reports Lower 1Q Profit
UPS Inc. said Wednesday that its first-quarter net income fell to $843 million or 78 cents a share, from $975 million or 89 cents a year ago.
The earnings included a charge related to aging jet aircraft and expenses for a voluntary buyout program in the quarter, UPS said in a statement.
The company's adjusted earnings of 96 cents per share were in line with its forecast of 94 to 98 cents.
Revenue rose 3.3% to $11.9 billion from last year’s first quarter, UPS said.
UPS, which celebrates its 100th anniversary as a company this year, said its U.S. export volume rose 10%, helping to compensate for “flat” domestic volume in a slowing economy.
It also said it benefited from an average 4.9% boost in shipping rates that took effect Jan. 1.
UPS’ supply chain and freight segment saw a second consecutive quarter of improved results, with revenue climbing to $1.97 billion from $1.9 billion.
The company repeated its January forecast that its 2007 per-share income will rise 6% to 10%, and said its second-quarter earnings would be $1 to $1.05 per share.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
