NEW YORK (CNNfn) - United Parcel Service of America Inc. posted a 28.5 percent increase in third quarter net income Friday, 10 days before shareholders of the world's No.1 package delivery company are slated to vote on an initial public offering.
The Atlanta-based UPS credited the bustling American economy for producing strong volume increases. The company's international operations saw double digit gains in export volume.
UPS reported net income of $557 million compared to $449 million for the same period last year. Earnings per share totaled $1.03 compared to 81 cents per share in the third quarter of 1998.
U.S. domestic package operating profits rose 16.1 percent to $879 million.
Domestic package revenue in the third quarter rose 8.3 percent to $5.57 billion, reflecting a 6.8 percent average daily volume increase, improved product mix and higher revenue per piece.
International operating profit rose to $38 million compared to a loss of $15 million for the same period the year before.
International package revenues rose 10.2 percent to $862 million and revenues for non-package operations rose 21.8 percent to $279 million.
Total worldwide revenues rose 9 percent to $6.72 billion.
Net income for the first nine months of 1999 reached $222 million, down from $1.26 billion in the year ago period. Total revenue climbed 8.2 percent to $19.61 billion.
UPS said the decline in net income reflects the effect of a second quarter tax assessment charge that cut net income by $1.44 billion.
Earnings per diluted share for the first three quarters of 1999 totaled 39 cents after the tax assessment charge, compared to $2.28 in 1998.UPS announced in July that it had filed a registration with the Securities and Exchange Commission for a public offering of stock, which would put about 10 percent of the company in public hands, raising what analysts estimate could be in excess of $3 billion.
A UPS shareholder meeting to approve the transactions needed to facilitate the offering is scheduled for Oct. 25 in Wilmington, Del.