The Atlanta-based parcel giant reported increased revenues in all of its business segments, and surpassed analyst expectations with an earnings per share of $1.32 for the quarter.
UPS reported a net income of $1.16 billion on revenues of $15.32 billion for the first quarter of 2017, a year-over-year increase of 2.4 percent and 6.2 percent, respectively.
Earnings per share (EPS) for the quarter totaled $1.32, up from $1.27 for the first quarter of 2016, and surpassing the Thompson Reuters estimate of $1.29.
“The improved per-share result was due to a 22 percent increase in supply chain and freight segment operating profit, strong underlying performance in the international segment and solid results in the domestic segment, plus the favorable tax impact of adopting the new stock compensation accounting standard (ASU 2016-9),” UPS said.
The domestic segment reported revenues of $9.54 billion for the quarter, up 5 percent year-over-year. UPS said the segment benefitted from strong demand for e-commerce deliveries. Construction is currently underway on 17 major facility projects (over 5 million square feet) to create capacity and efficiency to support further business-to-business and business-to-consumer growth, the company added.
The international segment’s revenues stood at $3.06 billion for the quarter, rising 4.9 percent year-over-year. The segment saw increased demand for cross-border shipments, with export growth strong across all UPS regions, the company said.
The supply chain and freight segment’s revenues for the quarter totaled $2.72 billion, an increase of 12.5 percent year-over-year.
UPS attributed the boost to higher-performing business development programs and improved market conditions across all business units, along with tonnage increases in freight forwarding and UPS freight.
UPS also said this week it is aligning all of its technology and engineering functions into one organization, and named Juan Perez Chief Information and Engineering Officer. Mark Wallace will continue to head Global Engineering and Sustainability as a member of the company’s executive management committee, reporting to Perez.
UPS Chief Marketing and Business Services Officer Teresa Finley is retiring from the company after 34 years of service. Since joining UPS in 1984, Finley held positions in the company’s international, small package, freight forwarding and logistics businesses, in addition to heading UPS Capital Corporation, a business unit that offers insurance and trade finance products.
UPS boosts Q1 net income, revenues
