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News
UPS delivers strong 3Q
October 19, 2000: 10:38 a.m. ET

Package delivery leader tops Wall Street estimates by 2 cents a share
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NEW YORK (CNNfn) - United Parcel Service delivered better-than-expected third-quarter earnings Thursday, as it overcame higher fuel prices, a weak euro and a slowing U.S. economy.

Atlanta-based UPS (UPS: Research, Estimates) reported net income of $702 million, or 60 cents a diluted share, up from $577 million, or 52 cents a share, in the year-earlier quarter. Earnings tracker First Call had expected 58 cents a share in the latest period.

graphicThis is only the fourth earnings report for the company as a public company, after an initial public offering last November. While it has never missed forecasts, investors have generally not reacted favorably to the previous reports. But the stock gained $5.06, or 9.5 percent, to $58.13 in trading Thursday after the release.

Revenues rose nearly 10 percent to $7.4 billion. UPS said it expects a solid fourth quarter and holiday volume should produce a one-day peak of 19 million deliveries.

"Our domestic core business is expanding and quite healthy; our international growth continues to be robust," said James Kelly, the chairman and chief executive of the world's largest transportation company.

Analysts said the results looked good, despite some softness in yields paid by customers. Ed Wolfe of Bear Stearns attributed some of the company's success to better domestic cost controls.

The ratio of operating expenses to revenue, a key measure of a freight carrier's financial performance, was 82.4 percent for domestic package operations, an improvement from the 83.6 percent ratio a year earlier.

As a result of the report, Wolfe said he would be raising his estimate for UPS's fourth quarter closer to the consensus forecast of 64 cents a share from his current 61-cent-a-share estimate. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.