UPS 1Q Profit Helped By Volume, Price -- Earnings Review
April 26 2018 - 8:11AM
Dow Jones News
By Austen Hufford and Paul Ziobro
United Parcel Service Inc. (UPS) reported first-quarter results
on Thursday. Here is what you need to know.
REVENUE: The company said revenue rose 10% to $17.11 billion,
above the $16.46 billion forecast by analysts polled by Thomson
Reuters.
EARNINGS: The company reported a profit of $1.35 billion, or
$1.55 a share, compared to $1.17 billion, or $1.33 a share, in the
same period a year before. Analysts polled by Thomson Reuters
expected UPS to earn $1.54 a share.
SHARES: In light pre-market trading, shares fell 0.6%.
VOLUME: UPS said U.S. domestic revenue rose 7.2% in the quarter
on 4.6% volume growth.
WEATHER: UPS said weather conditions "muted" U.S. performance in
the first quarter.
CONTRACT NEGOTIATIONS: UPS is currently negotiating with the
Teamsters union ahead of a labor contract expiration on July 31.
The two sides have been working through some of the Teamsters'
initial proposals but haven't come to terms on economic topics like
wages, pensions and health care. On Wednesday, the company said it
would offer buyouts to some management workers, aiming to reduce
payroll as it ramps up investments to handle the surge in online
shopping.
POSTAL SERVICE: President Donald Trump attacked the U.S. Postal
Service in recent weeks with a volley of tweets criticizing its
shipping contract with Amazon.com Inc. (AMZN). The president has
created a task force to review the agency's finances and pricing
structure for its parcel business. UPS could benefit from higher
parcel rates at the Postal Service, analysts say, as it would give
leeway to UPS and FedEx Corp. (FDX) to up their own shipping
rates.
Write to Austen Hufford at Austen.Hufford@wsj.com and Paul
Ziobro at Paul.Ziobro@wsj.com
(END) Dow Jones Newswires
April 26, 2018 07:56 ET (11:56 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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