Though domestic package services are still the dominant line for UPS, its international package business and supply chain and freight segments experienced more rapid growth in the company’s recently reported third quarter.
The pace for revenue growth in international packages was more than double that of U.S. domestic package revenues for UPS during the third quarter. Its supply chain and freight segments jumped 130% to $1.6 billion. Taken together, the two earnings stars are now half the size of UPS domestic package revenues.
U.S. domestic package revenues or $7.03 billion were up 6.9% over the 2004 third quarter. Earnings rose 18% to $1.11 billion.
International package revenues increased 14.5% to $1.92 billion, turning in an operating profit of $318 million (up 19.5%).
Revenues in the supply chain and freight segment, which includes recent acquisitions Menlo Worldwide Forwarding and Overnite Transportation, reached $1.6 billion and turned in a profit of $70 million; a 37.3% increase over the prior-year period.