UPS registered improvements in its revenues, operating profits and net profits in the third quarter of the year as volumes returned to growth.
The express giant saw its revenues for the third quarter increase 5.6% year on year to $22.2bn, while operating profits were up 47.8% to $2bn and net income improved by 36.6% to $1.5bn.
The company said that the results include an after-tax net benefit of $36m, comprised of a $152m gain resulting from the divestiture of Coyote Logistics offset by transformation strategy costs of $116m.
There were also improvements when looking at divisional performance.
The firm's US domestic package business registered a 5.8% improvement in revenues to $14.4bn, while operating profit improved by 57.3% to $898m.
The revenue improvement was driven by a 6.5% increase in average daily volume, slightly offset by a 2.2% decline in revenue per piece.
Its international segment saw revenues for the period increase by 3.4% year on year to $4.4bn while operating profits declined by 0.7% to $3.6bn.
The revenue improvement in the international segment was driven primarily by a 2.5% increase in revenue per piece.
Finally, the supply chain business saw revenues increase by 8% year on year and operating profits were up 103.5% to $289m.
This came on the back of a 15.1% improvement in air and ocean revenues driven by market demand out of Asia.
It also benefitted from the acquisition of MNX and the onboarding of US Postal Service's air cargo following the win of that contract.
Partially offsetting these gains was a weaker performance at Coyote and the completion of the sale of that truckload brokerage business in mid-September.
"After a challenging 18-month period, our company returned to revenue and profit growth,” said Carol Tomé, UPS chief executive. “Peak season is nearly upon us, and we are ready to deliver another successful holiday season and continue the progress we demonstrated in the third quarter.”
The improvements are a turnaround from the second quarter when the company announced declines in profits and revenues.
“On our last earnings call, we said that the second quarter would not only be the bottom, but a turning point for our performance and that we would return to revenue and profit growth in the third quarter, which we did,” said Tome.
During the quarter, the company also continued its ambition to be the world's leading healthcare logistics provider with the acquisition of Germany-based Frigo-Trans and its sister company BPL as part of efforts to build a more integrated pan-European cold chain network.
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