UPS reported an operating profit up by more than 20% year-on-year for its third quarter earnings report, the highest in the company’s history.
Consolidated revenue rose 5% to $18.3 billion. Daily volume for US shipments increased by 9%, while next day air volume jumped by nearly 24%. Domestic operating profit rose 26%, with a revenue boost of $1 billion, and international operating profit rose 20.3%.
These are the adjusted figures after accounting for taxes, but exclude “transformation strategy costs”—referring to the company’s plan to cut global spending by $1 billion a year by improving efficiency through automation.
“Our results reflect significant progress from our transformation initiatives, and our ability to generate growth and deliver increased efficiencies in a dynamic economic environment,” said David Abney, CEO and chairman of UPS.
“As we recently announced, we continue to forge new partnerships and create innovative solutions to accelerate growth in the most attractive opportunities.”
80% of UPS’ eligible parcel volume is expected to be handled in automated facilities by the end of the year.