UPS Reports Surge In 1st Quarter Profits
The Atlanta-based package carrier earned $499 million on revenue of $6.33 billion in the three months that 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.
Revenue from nonpackage operations, primarily the UPS Logistics Group, rose 26.6% to $261 million from $206 million. Overall, operating profits for the nonpackage segment declined to $25 million from $35 million, but operating profits for the logistics group increased 40.8%, the company said.
Kelly said the company continues to emphasize its role in facilitating electronic commerce and providing supply chain management services.
“UPS has become the essential pipeline for electronic commerce,” he said, noting that a dedicated electronic commerce sales force is being expanded.
