UPS has reported consolidated revenue increased to $17.2 billion in the first quarter (Q1) of 2019 driven by gains in average daily volume and higher-quality revenue and it said results reflect the impact of severe winter weather in the US.
Revenue was just above the $17.1 billion, growth of 0.3 per cent that was achieved in Q1 2018, while net income fell 17.4 per cent to $1.1 billion from $1.3 billion in Q1 last year.
The UPS international division saw revenues decline by 2.1 per cent to $3.6 billion and operating profits were down 11.1 per cent to $528 million.
The express freight firm’s US domestic segment saw revenues increase by 2.5 per cent to $10.5 billion and operating profit was up 11.9 per cent $666 million.
The supply chain and freight segment saw revenues rise by 3.9 per cent to $3.2 billion and operating profits were up 17.6 per cent to $200 million.
“The first quarter marked a good start to the year, as we executed against our strategy and generated solid performance across our business,” said David Abney, UPS chairman and CEO.
“Our Transformation initiatives are enhancing revenue quality and creating network efficiencies that will increase our long-term earnings power. We are on a path to take advantage of growth opportunities and enhance our future performance.”