E-commerce gives UPS profit a lift, despite mixed US economy

© Mark Milstein |

E-commerce and cost-cutting triggered a better result for UPS in its first quarter than it expected. But a potential change to pension benefits could leave the parcel company with a $3.8bn charge this year.

Better weather than in the first quarter of last year, plus a revenue increase of 3.1% in US domestic and a near 2% fall in cost per package, lead to overall revenues of $14bn and operating income of $1.8bn. Supply chain & Freight saw revenues grow 10.4%, reflecting the purchase of Coyote Logistics, but operating income fell 2.6% to $147m – owing to “weak market conditions in the air freight forwarding and LTL markets”.

You can read a fuller analysis here, or read more for a more concise overview.