9/15/2011 1:00:00 PM
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UPS Inc. officials Thursday set ambitious financial targets based on profit growth of about 10% companywide, reiterated its adjusted 2011 earnings and said its trucking profits could double over the next three years.
Adjusted earnings will be $4.15 to $4.40 a share, UPS said, adding that its profit would be $6.90 to $8.60 per share on that basis by the year 2016 as the U.S. economy strengthens.
Revenue by 2016 will be $72 billion to $79 billion, company officials said at an investors meeting that was webcast on Thursday.
Chief Financial Officer Kurt Kuehn said profits are expected to double at its UPS Freight less-than-truckload unit by 2014, producing a 6% operating margin.
Domestic package profit growth was forecast at 7% to 10% annually through 2016, with annual revenue growth of 5%-6% over the same period from $29.7 billion last year, Kuehn said.
The most ambitious profit target is international business, Kuehn said, with 10%-15% annual improvement through 2016, with revenue growth of as much as 12% from $11.1 billion in 2010.
The company on Wednesday unveiled a new service, to be called â€˜My Choice,â€™ that will allow UPS customers more delivery options.
UPS Inc. is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
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