United Parcel Service Inc.
continues to make more money as it ships fewer packages.
The delivery company’s third-quarter revenue rose 9.2% from the prior year to $23.2 billion, as the average revenue per piece UPS shipped increased 13%. The number of items it shipped daily fell 2%, marking the second consecutive quarter that shipping volume fell after roughly a decade of increases.
The trend reflects UPS’s strategy under Chief Executive
to focus on shipping packages and courting customers that generate more revenue and profit. Earlier this year UPS said that consumers returning to in-store shopping slowed down shipping volume.
For the period ended Sept. 30, UPS posted earnings of $2.3 billion, or $2.65 a share, compared with $1.96 billion, or $2.24 a share, a year earlier. Excluding some restructuring costs, UPS’s adjusted earnings were $2.71 a share.
The company also raised its margin outlook for the year, showing that it can operate more profitably even as costs increase heading into the peak holiday shipping season.
Shares rose 4.5% in premarket trading, as revenue and profit came in ahead of analysts’ estimates.
“The actions we are taking under our better not bigger strategic framework to improve revenue quality, enhance productivity and remain disciplined on capital allocation are driving our positive financial performance,” Ms. Tomé said in the earnings release.
UPS also increased its plans for capital spending for the year by $200 million to $4.2 billion.
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