UPS quarterly profit beats expectations as pandemic spurs home deliveries

[LOS ANGELES] United Parcel Service beat profit expectations on Wednesday, helped by a surge in home deliveries due to the Covid-19 pandemic.

Average daily volumes in the United States rose 13.8 per cent on continued strength in residential demand, the company said.

"Our results were fueled by continued strong outbound demand from Asia and growth from small and medium-sized businesses," chief executive officer Carol Tomé said in a statement.

Last month, the company said it would hire more than 100,000 workers for the winter holiday season, which retailers are stretching out to avoid overwhelming a delivery network already taxed by pandemic-fueled online shopping.

Net income rose to about US$2 billion, or US$2.24 per share, in the quarter ended Sept 30, compared with US$1.75 billion, or US$2.01 per share, a year earlier.

Excluding items, UPS earned US$2.28 per share, beating analysts' average estimate of US$1.90 per share, according to Refinitiv data.

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Revenue rose to US$21.24 billion from US$18.32 billion in the same period a year ago.

REUTERS