On April 27, 2017, UPS reported first-quarter revenue of $15.315 billion, up 6.2% from a year earlier, while diluted earnings per share rose to $1.32 from $1.27. The results showed an uneven picture beneath the topline: operating profit declined to $1.784 billion from $1.823 billion. [story-s1]
U.S. Domestic revenue increased 5% to $9.535 billion, with business-to-consumer deliveries rising and revenue per piece up 2.4%. The company said its Saturday Ground pickup-and-delivery initiative operated in 15 major metropolitan areas during the quarter, part of a rollout it expected to reach more than 4,700 cities by the 2017 holiday peak. UPS also reported that facility construction and the Saturday initiative added about $35 million to quarterly operating costs. [story-s1]
International revenue grew 4.9% to $3.058 billion, and export shipments rose 14%; non-U.S. domestic shipments increased 11%. Yet reported international operating profit fell to $529 million from $574 million, with UPS attributing pressure in part to unfavorable currency. Supply Chain and Freight offered the strongest profit growth: revenue rose 13% to $2.722 billion and operating profit increased 22% to $179 million. [story-s1]
The figures capture a company investing amid demand growth, not a uniform earnings surge. UPS said fuel expense rose $187 million, or 43%, year over year, while fuel-surcharge revenue lagged that cost. Its release reaffirmed full-year adjusted EPS guidance, but the quarter’s profit decline alongside higher revenue showed why segment mix, currency and costs mattered as much as package growth. [story-s1]
Source documents
- UPS Generates 6.2% Revenue Growth and Increases Q1 EPS to $1.32https://investors.ups.com/_assets/_cbffdd678bee71af9d0e23f1ba62cd9d/ups/news/2017-04-27_UPS_Generates_6_2_Revenue_Growth_and_Increases_Q1__579.pdf