Total revenues for the quarter were $12.21 billion, up from the same quarter last year’s $11.66 billion. The overall adjusted operating margin—with one-time items excluded—was $1.75 billion, up from last year’s $1.58 billion. Through the first 9 months of 2007, consolidated UPS revenues were up 4.0% at $36.3 billion compared to 2006’s $34.9 billion.
For the company’s US Domestic Package segment total volume was up 1.9% for the quarter, with Next Day Air (down 1.0%) and Deferred (off 1.5%) being supplemented by Ground shipments (up 3.5%). Average daily package volumes were: 13.4 million for Next Day Air compared to 1.3 million in 2006; Deferred volume was 874 million compared to last year’s 889 million; Ground was 11,291 million, up from 11,175 million year over year. Income for the segment during the quarter was $7.545 billion, up from $7,402 billion last year.
The International Package segment enjoyed a 12.4% boost for the quarter with income at $2.53 billion compared to $2.25 billion in 2006. Average daily volumes were 1.84 million for 2007 compared to last year’s 1.77 million. UPS reports that export volumes in Europe and Asia were in double-digits while those from the US were single-digit, although export volumes for the segment up 9.3% overall.
Revenues for the carrier’s Supply Chain and Freight operations were $2.13 billion for the quarter, up from $2.01 billion year over year. Logistics and forwarding operations were up 4.7% at $1.49 million, with less than truckload at $521 million, up 12.1%. For the year to date, total revenues for the segment were $6.2 billion, up 4.4% over 2006’s $5.9 billion.
Though expecting slower retail sales in the fourth quarter, Scott Davis, UPS vice chairman and CFO feels that good performance in International operations and Supply Chain and Freight will help sustain the carrier’s balance sheet. Davis will succeed Mike Eskew as chairman and CEO when he retires at the end of the year.
Among positives for the carrier going forward is an agreement—awaiting final approval—with the Teamsters on a new five-year contract and award of authority to operate six daily flights between the US and Nagoya, Japan.
