NEW YORK (AP) — UPS is raising its full-year earnings forecast after first-quarter net income rose 66 percent as customers paid more to move packages faster.
United Parcel Service Inc. said Tuesday it now expects to earn $4.15 to $4.40 per share this year, implying growth of 17 to 24 percent from 2010. Its previous estimate was $4.12 to $4.35 per share.
The Atlanta company earned $885 million, or 88 cents per share, up 66 percent from a year earlier when it earned $533 million, or 53 cents per share. Revenue jumped 7 percent to $12.58 billion. FactSet says analysts expected a profit of 84 cents per share on sales $12.71 billion.
UPS' freight segment results grew the fastest in the first three months of the year, with adjusted operating profit up 44 percent. The freight segments at both UPS and FedEx were struggling last year as the trucking industry had too many trucks competing for too little freight. In the U.S. domestic package unit, which was recently reorganized, adjusted operating profit jumped 29 percent.
In the U.S., UPS said more customers opted for faster service as its premium product growth outpaced ground. Customers had been favoring cheaper, slower options to save money in the recession. Revenue per package rose 5 percent, driven by higher prices and fuel surcharges.
