UPS profit rises 7 percent on strong post-holiday season

(Reuters) - United Parcel Service Inc , the world's largest package-delivery company, reported a quarterly profit above analysts' estimates, buoyed by a stronger-than-expected post-holiday season in January.

Daily package volume in the United States grew 4.4 percent, led by UPS Ground, which delivered 531,000 more packages per day.

As cost-conscious consumers shift from air express to slower and cheaper modes of shipping, UPS's stronger North American domestic network puts it in a better position than rival FedEx Corp , which focuses more international air shipments.

UPS's international package revenue was flat in the quarter, while sales in the United States rose 3.4 percent. Total revenue rose 2.2 percent to $13.43 billion.

Net income rose to $1.04 billion, or $1.08 per share, in the first quarter, from $970 million, or $1 per share, a year earlier.

Excluding items, UPS earned $1.04 per share.

Analysts on average expected earnings of $1.01 per share, excluding items, on revenue of $13.46 billion, according to Thomson Reuters I/B/E/S.

UPS on Thursday said it would buy Hungarian pharmaceutical logistics company, CEMELOG Zrt, to strengthen its healthcare reach in Europe. It did not disclose the terms of the deal.

UPS dropped its $7 billion bid for Dutch delivery firm TNT Express in January after European regulators said they would veto the deal on antitrust concerns.

The company's shares have gained 5 percent in the last 12 months but have underperformed the wider S&P 500 <.spx> index, which has risen 15 percent. UPS shares closed at $83.50 on the New York Stock Exchange on Wednesday.

(Reporting by Sagarika Jaisinghani in Bangalore; Editing by Supriya Kurane)

Source: http://news.yahoo.com/ups-profit-rises-7-percent-strong-post-holiday-120835550--sector.html

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