Ecommerce deliveries raised UPS’ quarterly profit
United Parcel Service Inc on Thursday reported a higher-than-expected quarterly net profit, citing a jump in ecommerce deliveries in its U.S. domestic package service and confirmed its earnings for 2017.
The world’s largest package delivery company said revenue at its core U.S. domestic package service rose 8 percent during the quarter to $9.7 billion. UPS said revenue per package in the domestic unit was up 3 percent versus the second quarter of 2016.
Like its main rival FedEx Corp, UPS has experienced a boom in ecommerce packages over the last decade. But the boom has come at a price, as both companies have had to invest heavily in their networks to handle the extra business.
The Atlanta-based company posted second-quarter net income of $1.4 billion or $1.58 per share, up nearly 8 percent from $1.3 billion or $1.43 per share a year earlier. Analysts had expected earnings per share of $1.47.
UPS said higher fuel surcharges and workers’ compensation contributed 10 cents per share to earnings in the quarter.
The company said it expects full-year earnings per share in a range from $5.80 to $6.10. Analysts expect earnings per share for the year of $5.95.
In light premarket trading, UPS shares were up 1.5 percent at $114.
Photo source: Facebook.com/ UPS