United Parcel Service (UPS), the world's largest package delivery company, reported Thursday a profit for the first quarter that increased seven percent from last year, reflecting revenue growth amid increased U.S. domestic and international volumes.
Adjusted earnings per share topped analysts' expectations, while quarterly revenues missed their estimates by a whisker. The company said it is reaffirming its earnings guidance for the full-year 2013, despite the continuing macro uncertainty.
"UPS demonstrated its ability to consistently deliver results. The UPS product portfolio is in-tune with connected and empowered consumers, creating a competitive advantage that positions us well for sustained growth," Chairman and CEO Scott Davis said in a statement.
The company noted that the latest quarter benefited from a stronger than expected post-holiday season in January as UPS e-commerce solutions resonated with customers.
The Atlanta, Georgia-based company reported net income of $1.04 billion or $1.08 per share for the first quarter, higher than $970 million or $1.00 per share in the prior-year quarter.
Results for the latest quarter includes a net $36 million after-tax gain related to its attempted acquisition of Dutch package delivery company TNT Express NV (TNTEF, TNTEY).
Excluding items, adjusted net income for the quarter was $1.00 billion or $1.04 per share, compared to $970 million or $1.00 per share in the prior-year quarter.
On average, 27 analysts polled by Thomson Reuters expected the company to earn $1.01 per share for the first quarter. Analysts' estimates typically exclude one-time charges and gains.
Revenues for the quarter grew 2.3 percent to $13.43 billion from $13.14 billion in the same quarter last year, but missed twenty-two Wall Street analysts' consensus estimate of $13.47 billion by a whisker.
U.S. domestic package revenue increased 3.3 percent to $8.27 billion, international package revenue edged up 0.4 percent to $2.98 billion, and supply chain and freight revenues improved 0.9 percent to $2.19 billion from last year.
The company said it delivered 16.2 million packages per day for the first quarter, up 4.1 percent from last year, with U.S. domestic package growing 4.4 percent and international package improving 1.8 percent.
In the first quarter, UPS delivered above one billion packages of 1.02 billion, up 2.4 percent from the year-ago quarter, despite one less operating weekday in the latest quarter. Average revenue per piece remained flat with last year at $10.86.
Looking ahead to fiscal 2013, the company continues to expect adjusted earnings in a range of $4.80 to $5.06 per share. Street is currently looking for full-year 2013 earnings of $4.99 per share.
Separately, UPS said it agreed to buy Hungary-based medical logistics company CEMELOG Zrt, as part of its ongoing global growth and investment strategy. The deal will help UPS boost its growing global and European healthcare network. CEMELOG serves the increasingly important markets of Central and Eastern Europe. Terms of the deal, which is expected to close in the second quarter, were not disclosed.
UPS closed Wednesday's regular trading session at $83.50, down $0.30 on a volume of 4.39 million shares. In the past 52-week period, the stock has been trading in a range of $69.56 to $85.95.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.