UPS Margins Increase, But Shipping Flat
UPS (NYSE:UPS), the world’s largest package delivery company, reported strong Q3 numbers helped by higher margins in the face of flat shipping volumes in the U.S. Net income rose to $1.04 billion ($1.06 per share) from $991 million ($0.99) in the previous year. The company benefited from cost savings and better shipping pricing even though the global economy expanded slowly.
“UPS (NYSE:UPS) produced another solid quarter of earnings growth against the backdrop of a deceleration in exports from Asia and a challenging global economic environment,” Chief Executive Officer Scott Davis said in a statement. The company has forecast record earnings per share of $4.15 to $4.40 for this year.
UPS (NYSE:UPS), and competitor FedEx (NYSE:FDX), are considered proxies for the functioning of the global economy because of the massive volumes of packages handled by them. Yesterday FedEx had investors cheering after saying they expect to deliver 12% more packages over 2010 levels — a total of over 260 million packages globally between Thanksgiving and Christmas.
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