UPS 1Q profit up as international business slows
ATLANTA (AP) — UPS said Thursday that its profit rose 6 percent in the first quarter, as improving domestic shipping offset a slowdown overseas.
United Parcel Service Inc., the world's largest package company, said net income rose to $970 million, or $1 per share, from $915 million, or 91 cents per share.
Revenue rose 4.4 percent to $13.14 billion.
The results were below analysts' estimates for net income of $1.02 per share and revenue of $13.3 billion. Shares fell 2 percent in premarket trading.
Sales in the U.S. rose 6.1 percent, while operating profit rose 13 percent on higher volume and shipping prices. The revenue gains from higher fuel surcharges and prices were mostly offset by a shift toward lighter and slower shipping methods.
UPS said online sales drove speedy shipping options including next day air, while ground volume rose 4 percent on demand for lightweight shipments.
International revenue rose 2.3 percent to $2.97 billion, although revenue per package was down slightly. Results were dragged down by continued weakness in Asian exports and shipments within counties in Europe and Asia.
