UPS posts strong Q1 results

UPS said its net profit soared 33 per cent in the first quarter on broad earnings gains across all its business segments giving further optimism that a full-blown economic recovery is in progress. “With global economies showing signs of recovery and UPS’ strong start to 2010, we are optimistic about this year and the future,” […]


UPS said its net profit soared 33 per cent in the first quarter on broad earnings gains across all its business segments giving further optimism that a full-blown economic recovery is in progress.

“With global economies showing signs of recovery and UPS’ strong start to 2010, we are optimistic about this year and the future,” UPS chairman and CEO Scott Davis said.

Overall, UPS showed a US$533 million net profit in the quarter, up from $401 million in the first three months a year ago, the low point of the global economic downturn, with the operating profit ballooning 45.1 per cent to $1.04 billion. Revenue increased seven per cent to $11.7 billion.

The healthy results were attributed to growth in the international package and supply chain businesses, yield improvement and increased operating leverage resulted in margin expansion in all business segments.

In the Asia Pacific region, UPS in Malaysia and Hong Kong had the strongest growth compared to the first quarter of 2009. Export volumes have increased more than 50 per cent in Malaysia and more than 35 per cent in Hong Kong, while South Korea saw growth of more than 25 per cent and Singapore nearly 25 per cent.