Friday 21st Oct 2016 - Logistics Manager

Volume boost for UPS

UPS has reported a three per cent rise in parcel volumes in the first quarter – up to 940 million items. Average revenue per piece also increased by three per cent, reflecting general rate increases and higher fuel surcharges.

The international parcels business saw strong growth with an 18 per cent increase in revenue with operating profit increasing 45 per cent. Average daily volume also increased 18 per cent during the quarter, outpacing market growth once again with all regions contributing. The group said export volume increased more than nine per cent owing to strong growth in all major trade lanes.


“Non-US domestic volume increased 24%, driven by an acquisition in Turkey in the third quarter of last year, as well as 13% organic growth, powered by strength in core European countries.”

Adjusted operating profit in the supply chain and freight division  more than doubled to $91m. Each business unit in the segment recorded revenue gains, with Forwarding and Logistics up 16 per cent. Adjusted operating profit for the segment more than doubled led by gains in Logistics, which continued to benefit from strength in the high-tech and healthcare sectors. Reported operating profit improved 33 per cent.

The group’s adjusted operating profit rose from $899m in the first quarter of 2009 to $1.2bn this year.

Kurt Kuehn, UPS’s chief financial officer, said: “We expect first quarter trends to continue through the year, producing revenue growth and additional operating leverage.”