Asian volumes boost UPS in Q3

Strong outbound demand from Asia helped fuel a 15.9% increase in third quarter 2020 consolidated revenues for UPS to $21.2bn.

The US-headquartered global parcels and logistics giant saw third-quarter consolidated average daily volume increase 13.5% year over year, while operating profit was $2.4bn, up 11% compared to last year’s third quarter.

Said Carol Tomé, UPS chief executive: “Our performance highlights the agility of our global integrated network amid the ongoing challenges of the pandemic. Our results were fuelled by continued strong outbound demand from Asia and growth from small and medium-sized businesses.”

US domestic average daily volume for the period increased 13.8%, with growth across all products and continued elevated residential demand, while the international segment saw average daily volume grew 12.1%, with double-digit export volume growth globally and continued strong outbound demand from Asia.

UPS is not providing consolidated revenue and diluted earnings per share guidance due to the uncertainty around the timing and pace of the economic recovery. The company is unable to predict the extent of the business impact or the duration of the coronavirus pandemic, or reasonably estimate its operating performance in future quarters.

Said Brian Newman, UPS chief financial officer: “Our better, not bigger approach had a positive impact on our performance in the quarter, specifically through the revenue-quality actions we’ve taken. Additionally, we recently launched new initiatives to further reduce our costs.

“Looking ahead to the fourth quarter, we are collaborating with our customers and using our proven tools to control volume and ensure the resiliency of our network. We are focused on delivering a successful peak and generating cash returns.”