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UPS 1st-qtr profit tops estimates as revenue rises

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Reuters NEW YORK
Last Updated : Apr 27 2017 | 5:57 PM IST

NEW YORK (Reuters) - United Parcel Service Inc reported a higher quarterly net profit on Thursday as revenue grew across its domestic, international and supply chain and freight segments.

Often seen as a bellwether of U.S. economic activity, UPS said revenue increased to $15.315 billion in the first quarter from $14.418 billion in the year-ago period.

Revenue at the company's domestic segment rose 5 percent to $9.535 billion from $9.084 billion a year ago, with the company saying e-commerce demand was strong.

Like other package delivery companies, UPS has benefited from a rapid rise in e-commerce, but has struggled to bring down the extra costs associated with making stops at individual residences rather than at businesses.

The Atlanta-based company posted first-quarter net income of $1.158 billion, or $1.32 per share, up 2.4 percent from $1.131 billion, or $1.27 per share, a year earlier.

Analysts, on average, expected earnings per share of $1.29.

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(Reporting by Luciana Lopez in New York; Editing by Jeffrey Benkoe)

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First Published: Apr 27 2017 | 5:51 PM IST

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