Bangkok--4 May--Ogilvy Public Relations Worldwide
UPS Thailand reported nearly 15% growth in export volume for the first quarter of 2006, and nearly 15% in YTD growth compared to the same period in 2005.
“UPS’s strategy is to shift from package delivery into the US$3 trillion global supply chain industry by providing customers with complete supply chain solutions, said Halim Selamat, Managing Director of UPS Thailand. “Our strong first quarter growth is a testimony of how our customers in Thailand are increasingly turning to us to provide broad solutions across their supply chain.”
Globally, led by a strong 16.5% gain in worldwide revenue, UPS reported earnings per diluted share of $0.89, up 14.1% over the prior year. Results were driven by a 9% increase in global small package volume or 1.24 million packages per day, outpacing worldwide market growth.
The consolidated results for the period included:
Revenue grew 16.5% to $11.5 billion.
Operating profit increased 12.3% to $1.6 billion.
Net income increased 10.5% to $975 million.
Free cash flow improved to $1.9 billion.
Solid fundamentals are delivering healthy cash flow. Free cash was used to buy back more than 11 million shares in an on-going repurchase program. Dividends were increased by 15% and are up 81% over the last three years.
Highlights by segment for the first quarter included:
U.S. Package
Revenue grew 9.6% to $7.5 billion.
Operating profit increased 15.3% to $1.19 billion.
Operating margin improved 80 basis points to 15.9%.
Volume grew 6.8% in total, or 848,000 packages per day.
Revenue gains were a result of robust growth across all products combined with firm pricing. Product growth was paced by a 9.3% increase in Next Day Air? volume coupled with a 10.8% increase in deferred air volume. Average daily ground volume rose 6.2%, or almost 650,000 packages per day.
During the quarter, UPS accelerated the speed of its U.S. ground network, enhanced its 2nd Day Air A.M.? products and launched extensive training of its sales teams in selling the freight portfolio.
International Package
Revenue grew 17.3% to $2.16 billion.
Operating profit increased 13.5% to $395 million.
Operating margin remained strong at 18.3%.
Volume grew 29.1% to 1.7 million packages per day.
Export volume growth was excellent with a 16.3% increase, reflecting strong performance in all major regions of the world. Non-U.S. domestic volume climbed 38.3%, aided by acquisitions.
Recently, UPS added important international flights to and from China and expanded its operations there. The company also enhanced Trade Direct service between the United States, Canada and Europe and extended its unique Web-based multi-location shipping system, UPS CampusShip?, to another 18 countries and territories.
Supply Chain and Freight
Revenue grew 53.9% to $1.9 billion, driven primarily by acquisitions.
Operating profit declined $34 million.
Freight forwarding and logistics operating profit was impacted by increased expenses and lost revenue due to the integration of the former Menlo Worldwide Forwarding unit. However, these results were somewhat offset by solid less-than-truckload revenue and shipment growth in the ground freight operations.
Outlook
“No company in this industry is better positioned to capitalize on the growth opportunities we see around the world,” said Chief Financial Officer Scott Davis. As a result, UPS is projecting diluted earnings per share in a range of $0.97 to $1.01 in the second quarter compared to the $0.88 reported during the prior-year period. “We are reaffirming our full-year 2006 guidance,” Davis added. “UPS continues to expect an increase in diluted earnings per share of 11-to-16%, consistent with the company’s historical growth rate.”
UPS is the world’s largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS) and the company can be found
on the Web at UPS.com.
Issued on behalf of : UPS Thailand
For further information : Isavara Sakunwadhana ( [email protected] )
Ogilvy Public Relations Worldwide Ltd.
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Phongchayut Ladavalya
UPS Parcel Delivery Service Limited
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