UPS Posts Lower Profit, Revenue

United Parcel Service Inc. UPS +3.16%reported a drop in third-quarter earnings despite a rise in package volume, as soft international trade and a growing preponderance of low-priced shipments from online shopping damped results.

The Atlanta-based delivery company also booked a big pension-restructuring charge in the quarter.

UPS said package volume climbed 2.9% overall, lifted by a 3.7% rise in the U.S. Business-to-consumer shipping, meaning e-commerce, "was absolutely the primary driver of the volume growth" domestically, Chief Financial Officer Kurt Kuehn said on an earnings conference call, with business-to-business volume "slightly negative."

E-commerce has been something of a mixed bag for top shippers such as UPS and FedEx Corp., FDX +0.40%buoying volumes but at low prices. UPS said Tuesday that in the latest quarter revenue per package slipped 0.8% in the U.S. despite the overall volume increase.

Read Full Article from Wall Street Journal

- Posted: 2012-10-23 16:03:29

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