UPS posts 26% jump in income

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ATLANTA, GA — UPS yesterday reported a 28% jump in net income for the third quarter thanks to a strengthening U.S. package business, record performances by both the international and non-package segments and two other modest gains.

Earnings per diluted share increased 27% to US$0.65 from US$0.51 last year, including gains due to the sale of a business unit and a favorable tax ruling. Without these items, earnings per diluted share were US$0.62, up 22% compared to the prior year.

The U.S. package business, paced by a strong 10.2% rise in Next Day Air volume and a 2% increase in the larger ground business, grew 3.2% or 374,000 packages per day compared to the prior-year period.

International export package volume climbed 8.1% as that unit posted the most profitable quarter in its history. Non-package revenue increased 6.2% and operating profit for that unit jumped 92%, including a gain on the sale of UPS Aviation Technologies.

For the quarter ended Sept. 30, 2003, consolidated revenue totaled US$8.31 billion, up 7.2% from the US$7.75 billion reported during the same period in 2002. Consolidated operating profit increased 21% to $1.15 billion. Net income totaled US$739 million, an increase of 28% over the prior year’s US$578 million. Excluding the gains due to the sale of the business unit and a favorable tax ruling, net income totaled US$702 million, an increase of 21%.

UPS is the world’s largest package delivery company.

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