Package delivery company United Parcel Service Inc (UPS.N) posted a higher quarterly profit on Tuesday, despite its revenue being hurt by the strong U.S. dollar, and reiterated its full-year earnings outlook.
The Atlanta-based company said that without the impact of the U.S. currency on its results, revenue would have been up for the quarter. UPS also said that lower fuel surcharge revenue had weighed on results.
“Third-quarter results reflect strong progress on our long-term initiatives despite uneven economic conditions,” Chief Executive David Abney said in a statement.
UPS reported third-quarter net profit of $1.26 billion, or $1.39 per share, up 4 percent from $1.21 billion, or $1.32 per share, a year earlier.
Analysts, on average, expected earnings per share of $1.37.
UPS said that it expects full-year earnings per share to come in at the high end of its previously-announced forecast of a range from $5.05 to $5.30.
Revenue for the quarter fell slightly to $14.24 billion from $14.29 a year earlier. Analysts had expected revenue for the quarter of $14.43 billion.
The company said on a currency neutral basis, its revenue would have been up 1.8 percent. The strong U.S. dollar means that sales overseas are lower when translated into dollars.
In pre-market trading, UPS shares were down 3 percent at $103.
REUTERS
