Tuesday, October 23, 2007

UPS net income up 3.7% in third quarter

United Parcel Service Inc.'s profit rose in the third quarter, as the company noted improvement in its supply chain and freight segment and good gains in its international business.

The Atlanta-based package shipping giant delivered net income of $1.07 billion on $12.2 billion in revenue, compared with net income of $1.4 billion on $11.7 billion in revenue in the third quarter of 2006. Third-quarter earnings increased 6.3 percent to $1.02 a share.

"This was a very good quarter for the company from many perspectives," said Mike Eskew, UPS chairman and CEO. "First, UPS turned in a solid performance in the face of a slower U.S. economy. We reached tentative agreement with the Teamsters on a new contract almost a year early. And we unveiled industry-leading service and technology innovations."

During the quarter, UPS and the Teamsters reached a handshake agreement on a new five-year contract covering about 240,000 U.S. employees. The tentative deal, which is going through the ratification process, will extend UPS' contract with the Teamsters through July 31, 2013.

Through nine months, UPS had net income of $3.02 billion on $36.3 billion in revenue, compared with net income of $3.07 billion on $34.9 billion in revenue in the same period of 2006. Earnings through nine months grew 0.7 percent to $2.84 a share.

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