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United Parcel Service
Inc.
UPS -2.98%
The announced sales increased during its last quarter, due to the increase in prices and volume gains of all its products.
The Atlanta-based delivery company reported Wednesday a turnover of $ 10.4 billion, up 8.1% from the previous year. Global revenues jumped 7.9% to $ 17.44 billion, slightly below the consensus forecast of $ 17.49 billion announced by analysts surveyed by Refinitiv.
Average parcel volume per day for the third quarter increased 2.7%, while average room revenue increased 4%.
Last month, at an investor conference, UPS executives outlined their plans to meet the needs of the most profitable customers, while efforts aimed at large shippers like
Amazon.com
Inc.
AMZN -0.67%
tightened the margins.
UPS also spent money upgrading its technology systems to compete
FedEx
Corp.
and Amazon, as well as to meet the growing demand for online shopping.
Earlier this month, UPS officially opened its second largest ground handling facility in the United States and the fourth largest parcel operation in its global network. The new center in Atlanta, which will handle approximately 100,000 packages at the time, is part of an expanded network of regional centers designed to improve efficiency and service levels.
In the third quarter, UPS posted earnings of $ 1.51 billion, or $ 1.73 per share, compared to $ 1.26 billion, or $ 1.44 per share, a year ago. Excluding transformation costs, adjusted earnings amounted to USD 1.82, according to analysts' estimates.
For 2018, UPS maintained its earnings per share target of between $ 7.03 per share and $ 7.37 per share. For the fourth quarter, the company had previously guided the increase in its adjusted net income per share by about 15%, despite the expected headwinds of currencies in emerging markets and one day less in peak periods. .
UPS shares fell 1.5% to $ 112.50 in pre-market trading on Wednesday. Shares are down 4.6% in the last 12 months.
Earlier this month, Teamsters rejected a new contract with UPS, but union management said the turnout was too low for the contract to be rejected. Both parties had announced their return to the negotiating table before the end of year celebrations.
Last week, UPS organized a one-day recruitment blitz as part of its efforts to hire approximately 100,000 seasonal employees to meet the holiday demand.
Write to Aisha Al-Muslim at [email protected]
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