International operating profit at UPS increased 15 per cent to $574 million, while US Domestic operating margin expanded on solid revenue growth and reduced per unit costs.
Revenue rose 3.2 per cent in the first quarter to $14.4 million. However, the company said revenue growth had been slowed by lower fuel surcharges and currency exchange rates.
Supply Chain and Freight revenue increased by more than ten per cent to $2.4 billion. This was mainly due to the acquisition of Coyote Logistics in the third quarter of last year. Operating profit was better than anticipated, but slightly less than last year. Weak market conditions in the Air Freight Forwarding and LTL markets weighed on top line growth.
“We continue to execute well in all areas of our long-term enterprise strategy,” said David Abney, UPS chairman and CEO. “The combination of revenue growth and benefits from our accelerated investments generated strong financial results in the quarter.”