UPS quarterly profit $953,000,000
UPS profit up on next-day shipments
By August Cole, MarketWatch
Last Update: 12:03 PM ET Oct. 20, 2005 |
SAN FRANCISCO (MarketWatch) -- UPS said Thursday that third-quarter earnings increased 7% as next-day air and ground shipments rose and export cargo traffic grew.
UPS earnings rose to $953 million, or 86 cents a share, compared with $890 million, or 78 cents a share, in the year-ago period.
The package-delivery company said sales rose 17.9% in the three months that ended Sept. 30 to $10.55 billion from $8.95 billion.
Analysts polled by Thomson First Call had predicted UPS would post a profit of 86 cents a share on revenue of $10.39 billion.
UPS said average daily volume of 4% in the U.S. exceeded economic growth rates, with next-day air shipments rising 6.1%. U.S. domestic-package revenue grew 6.9% during the period to $7.03 billion. International-package revenue increased 14.5% to $1.92 billion.
Third-quarter domestic margins were the highest in four years at 15.8%, according a note from Baird equity research analysts.
Merrill Lynch analysts pointed out that international UPS margins, at 16.6%, were below the investment firm's 18% estimate.
"Overall, results in the quarter were in-line, while the outlook puts our estimate in the middle of the company's target range," wrote Merrill's Ken Hoexter.
UPS said its 2005 earnings would rise 18% to 20% per share from the $2.90 a share reported for 2004. Earnings in 2006 should rise by between 11% and 16%, it predicted.
The global small-package business should remain strong, UPS said in a statement, resulting in "exceptional operating profit in both the domestic and international segments."
UPS shares rose Thursday, trading as high as $72.70.