First quarter earnings for the global logistics giant UPS has been largely observed as a mixed bag. The company though has maintained its average daily volume has gone up and it managed to fetch higher quality revenue during the quarter even as rough winter weather in the US marginally impacted its business.
The company has reported its U.S. domestic package revenue increasing by 2.5% to $10.48 billion. But with adjusted operating profit at $694 million, the margin went down 8.2% annually to last year’s $756 million.International Package revenue at $3.459 billion slipped by nearly 2 percent and there was a decline of 3.9 percent in its Supply Chain and Freight revenue at $3.221 billion.
“The first quarter marked a good start to the year, as we executed against our strategy and generated solid performance across our business,” said David Abney, UPS chairman and CEO. “Our Transformation initiatives are enhancing revenue quality and creating network efficiencies that will increase our long-term earnings power. We are on a path to take advantage of growth opportunities and enhance our future performance.”