UPS United Parcel Service

   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)

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