Wednesday 26th Oct 2016 - Logistics Manager

Billion package quarter for UPS

UPS delivered a billion packages in the first quarter of 2012 – a 4.3 per cent increase on last year. The company said the growth was down to rapid e-commerce growth combined with growing demand for lightweight shipping solutions.

The group is currently in the process of acquiring TNT Express, which it said would further expand its portfolio of solutions and geographic footprint.

Total sales were up from $12.6bn (£7.8bn) last year to $13.1bn (£8.1bn) while operating profit rose from $1.5bn (£930m) to $1.6bn (£990m).

Operating profit in the Supply Chain and Freight business climbed 19 per cent $166m (£103m) on revenue growth of 1.3 per cent to $2.2bn (£1.4bn).

The group said operating margin in the Forwarding business expanded due to growth in customized solutions and brokerage services, in addition to improved productivity. However, revenue was negatively impacted by declines in both tonnage and yield as excess capacity in the market continues.

Demand for UPS healthcare solutions drove revenue gains in the Logistics business unit. Operating margin expanded despite the impact of continued investment in the healthcare network.

“These results demonstrate that UPS is providing its customers with the solutions needed for today’s ever-changing market conditions,” said Scott Davis, UPS chairman and CEO. “We will continue to invest and develop innovative services that facilitate global commerce, ensuring UPS’s long-term success.”