Boston, MA 10/28/2013 (wallstreetpr) – United Parcel Service, Inc. (NYSE:UPS), a package delivery company, witnessed its shares soaring after it reported strong profits for the third quarter.
The Atlanta-based company posted earnings of $1.10 billion i.e. earnings per share of $1.16, as compared with $469 million earnings and 48 cents a share in the previous year. The company’s revenues are up at $13.52 billion which was mainly due to U.S. e-commerce shipments and impressive European exports. The company has been able to beat the market consensus of $1.15 earnings per share.
UPS, one of the largest couriers company has confirmed to have delivered more than one billion packages during the third quarter. The company also expects that its daily volume could increase by 8 % during the year’s holiday season and through online sales.
The company stated that though the manufacturer’s strategic planning to cut down shipping expenses and the relocation of some of the shippers close to their customers have hurt the company in its air shipments however, its ground shipments have increased manifold.
“UPS chairman and Chief Executive Officer Scott Davis said that the company is expanding its global capabilities which could help it to meet the evolving supply chain needs of its customers. He further added that the company is making investments in the emerging markets, health care distribution and the worldwide retail delivery models so as to ensure that the company could deliver on both fronts, the solutions customers require and the returns shareholders expect.
UPS is said to be closely observed by the Wall Street as it gives a picture of economic health based on its large volumes of shipments across the world. On a given day, it delivers packages for 1.1 million shipping customers to 7.7 million consignees in over 220 countries. The company’s share rose by 1.19% to close at $95.61 on Friday’s trade.
