UPS third-quarter down nearly a half

UPS’ third quarter results reveal a 43 per cent drop in profit and a 15 per cent drop in revenue compared to the same period last year.Net income was down to US$549 million compared to $970 million a year ago.Revenue was down to $11.2 billion from $13.1 billion over the same period. This equates to a 2.4 per cent fall in consolidated shipping volumes to 927 million packages.Average daily volume during the same period fell 3.9 per cent and revenue per piece dropped 11.3 per cent.Domestic revenue fell to $6.9 billion from $7.8 billion. Next Day Air volume increased 2.4 per cent but this was offset by a 6.2 per cent drop in ground shipping.International revenue fell to $2.4 billion from $3 billion, but there was a slight increase in average daily volume from 1.9 million to 2 million packages.Supply chain and freight revenue fell to $1.9 billion from $2.3 billion, which the company blamed on increasing competition in the industry.“I’m encouraged by the signs of economic recovery that are becoming apparent, although we still have a long way to go,” said UPS chairman and chief executive officer Scott Davis. “Ongoing strategic investment has positioned UPS to capitalise on growth opportunities around the world.” 

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