UPS announced diluted earnings per share of 88 cents for the first quarter of 2011, a 24 percent improvement over the adjusted 71 cents for the prior-year period. Global revenue grew 7.3 percent, producing a 21 percent increase in operating profit to $1.4 billion.
On a reported basis, diluted earnings per share and operating profit increased 66 percent and 37 percent, respectively, over the same period last year. Based on that performance, UPS has increased its guidance for 2011 diluted earnings per share to a range of $4.15-to-$4.40, an increase of 17-to-24 percent over 2010 adjusted results.
For the three months ended March 31, UPS delivered 957 million packages and expanded its operating margin by 130 basis points to 11.3 percent. On a reported basis, operating margin improved 240 basis points over the prior-year period. In the first quarter of 2010, UPS incurred $175 million in charges that reduced diluted earnings per share by 18 cents. Those charges related to the U.S. domestic segment reorganization, a loss on the sale of a supply chain unit and a change in the tax filing status of a German subsidiary.
Investment firm Stifel Nicolaus, commenting on UPS’ results, noted that UPS management attempted to tone down expectations after a good earnings number, citing mainly fuel price economic risks. The biggest positive, said Stifel’s David Ross, was that Supply Chain and Freight margins exceeded expectations. However, there was weakness in domestic package volume growth, with management estimating a 2 percent impact to year-over-year growth from weather and Easter timing.
Industry : Related News
4/29/2011 – UPS Q1 Earnings Up 24%
UPS announced diluted earnings per share of 88 cents for the first quarter of 2011, a 24 percent improvement over the adjusted 71 cents for the prior-year period….
4/29/2011 – Cummins Q1 Sales Up 56% to $3.9 Billion
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4/29/2011 – Tornado Outbreak Destroys Truckstop, Affects Carriers, Shippers, Drivers
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4/28/2011 – First Quarter Fleet Results: Earnings Tempered by Weather and Fuel
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4/28/2011 – Truckstop, Trucking Companies Hit in Southern Tornadoes
Tornados ravaged parts of the South yesterday, damaging some trucking companies and severely damaging at least one truck stop….
4/27/2011 – ATA Tonnage Index Rises 1.7 Percent in March
The American Trucking Associations’ advance seasonally adjusted For-Hire Truck Tonnage Index increased 1.7 percent in March after falling a revised 2.7 percent in February. The latest gain put the seasonally adjusted index at 115.4 in March, the highest level since January of this year…
4/27/2011 – Carrier Survey Finds Rates Up For Majority
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4/27/2011 – Used Truck Market Shows Price Rises, Higher Miles
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4/27/2011 – Positive Industry Outlook Tempered by Rising Operating Expenses
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4/21/2011 – Heavy-Duty Order Backlog Approaches 108,000 Units
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4/20/2011 – Trucking Companies Relying Less on Broker Services
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4/15/2011 – ATA: Increased Hiring and Rising Turnover Indicate Economic Recovery
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4/13/2011 – Commercial Vehicle Market Strength to Continue Through 2011 and 2012
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4/11/2011 – Virginia Tech Transportation Institute Creates Driving Healthy Resource
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4/8/2011 – TCP Carrier Survey: Excellent Rates and Volumes Expected
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4/5/2011 – Hub Group Acquires Exel Transportation Services
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4/4/2011 – Canadian Professor to Research Trucker Health
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4/1/2011 – Daimler Exec: Production Ramp-up Won’t Meet Demand
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4/1/2011 – ArvinMeritor Changes Name to Meritor
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3/28/2011 – Class 3 Registrations Lead Improved January Numbers
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3/21/2011 – Volvo Trucks North America and UAW Reach Tentative Agreement
Volvo Trucks North America announced Friday that the company and the United Auto Workers reached a tentative agreement on the terms of a new 5-year agreement that would cover approximately 1,300 UAW members at the New River Valley, Virginia, plant….
3/18/2011 – Navistar Considering Reopening Ontario Plant
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3/15/2011 – Berkshire Hathaway to Buy Lubrizol for $9.7 billion
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