UPS profits hit by severe winter weather
UPS saw profits decline in the first quarter of the year as extreme winter weather hit earnings.
During the period, the company saw revenues increase by 0.3% to $17.2bn while net income declined by 17.4% to $1.1bn.
The company said that its profits were affected by “severe winter weather in the US” and one less operating day as a result of the Easter holiday being in mid-April.
Its US domestic segment saw revenues increase by 2.5% to $10.5bn and operating profit was up 11.9% $666m.
An increase ground revenues per piece, led by gains from healthcare, manufacturing and e-commerce, contributed to the improvement.
Average daily volume for air products grew nearly 8%, driven by high demand for faster delivery options.
The company said that on an adjusted basis, without transformation related charges of $84m, operating profits reached a record $612m thanks to disciplined yield management, coupled with growth from middle market B2B customers.
Finally, its supply chain and freight segment saw revenues increase 3.9% to $3.2bn and operating profits were up 17.6% increased to $200m.
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