UPS generates 6.2 per cent revenue growth in Q1

UPS announced first-quarter 2017 operating results with revenue growth across all segments. The company improved earnings per share by 3.9 per cent versus the same period in 2016. The improved per-share result was due to a 22 per cent increase in Supply Chain and Freight segment operating profit.

2017-05-03 12:33:57

"Revenue came in strong this quarter with all segments adding to the topline," said David Abney, UPS chairman and CEO. "We are accelerating investments to create the industry's leading smart global logistics network and value-creating portfolio. UPS customers are benefiting from expanded capacity, choice and improved time-in-transit, while technology solutions continue to deliver efficiencies."

For the total company in Q1 2017, total revenue climbed 6.2 per cent and currency-neutral revenue increased 7.5 per cent. Revenue grew in all segments and in all major product categories, as balanced market demand occurred across the company's broad product portfolio.

Total fuel expense increased 187 million USD or 43 per cent over Q1 2016. The fuel surcharge revenue lagged expense, however a February 2017 surcharge change mitigates this variance for future periods.

Capital expenditures to support network enhancements were 938 million USD during the quarter, demonstrating a run-rate at the annualized guidance level.

UPS paid dividends of 774 million USD, an increase of 6.4 per cent per share over the prior year. The company repurchased 4.2 million shares for approximately 450 million USD in line with the company's capital allocation policy.