Shares in UPS dip despite posting an unexpected profit
Delivery giant United Parcel Service (UPS) defied expectations today, posting a more upbeat quarterly profit.
The company warned back in April that it expected volumes to shrink in the first of the year as the pandemic momentum slows and more and more people return to the high-street.
However, thanks to prioritisation of more expensive shippings and parcels, UPS posted revenues of $25.8bn in its second quarter earnings, up 5.7 per cent from last year.
Higher shipping rates also helped the firm offset decline in package rates, with the Atlanta-based firm reporting an operating profit of $3.5bn, up by 8.5 per cent from last year.
Commenting on the results, UPS chief executive Carol Tomé said: “While the external environment is ever changing, our better not bigger strategic framework has fundamentally improved nearly every aspect of our business, enabling greater agility and strong financial performance.”
Looking forward, UPS reaffirmed full-year financial targets, including a revenue of $102bn, as well as dividend payments of about $5.2bn, which are subject to board approval.
However, shares dipped today as investors focused on the fall of package volume. Average package volume fell four per cent in the US and more than 13 per cent internationally.