Package delivery company UPS has announced adjusted diluted earnings per share of $0.93 for the third quarter of 2010, a 69% improvement over the prior-year period. Global revenue grew 9.3%, generating $1.5 billion in adjusted operating profit, a 62% increase.
Based on the company’s performance, UPS has increased its guidance for 2010 adjusted diluted earnings to a range of $3.48 to $3.54 per share, a 51%-to-53% increase over last year. UPS reports that it delivered 958 million packages in the quarter.
“Based on the projections of retailers and economists, we expect modest growth during the holiday peak season,” notes Kurt Kuehn, UPS’s chief financial officer. “We are raising our full-year 2010 guidance with adjusted earnings per share expected to grow more than 50% over last year.”
For the supply chain and freight segment, revenue grew 19% with the Forwarding business unit leading the way. Operating profit jumped 74% to $177 million, powered by Forwarding and Logistics.
The operating margin for the segment increased 250 basis points to 8.0%. This margin expansion was primarily driven by improved revenue management, increased tonnage and improved operational efficiencies in Forwarding and Logistics.
UPS Freight revenue grew 14% due to improved yield and increases in gross weight hauled.