UPS has reported that the volume of global small package deliveries has risen 9 per cent to £6.5bn, for the first quarter of 2006.
UPS also said that in the international package market, volumes grew 29 per cent to 1.7 million packages per day. Despite this strong growth, operating profit in freight forwarding and logistics fell by £19m. The integration of Menlo Worldwide forwarding and increased expenses were blamed for the loss.
UPS chairman, Mike Eskew said: “This was a quarter of outstanding growth that resulted in strong returns and excellent cash flow. To drive future results, we will continue to invest in our network, technology and products…”
The package delivery giant used free cash to buy back more than 11 million shares in an on-going repurchase program. Dividends were increased by 15 per cent and are up 81 per cent over the last three years.