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UPS profit rises 23% on e-commerce demand -Breaking

by Mike Robinson

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© Reuters. One woman looks at the sign that bears the logo of United Parcel Service, (UPS), as she walks by it during a Chicago job fair on October 18, 2014. REUTERS/Jim Young

(Reuters) – United Parcel Service Inc (NYSE) posted a 23% increase in quarterly profits on Tuesday. This was due to high ecommerce demand, which has enabled the delivery company to increase shipping costs and select more lucrative customers.

UPS and FedEx Corp, a rival (NYSE:), are shipping record-breaking numbers of ecommerce orders since COVID-19 made it easier to shop online.

They have both added profit-sheltering fees to compensate for the increased cost of home delivery, but now they are struggling to pay the steeply rising cost to retain reliable drivers.

UPS’s third quarter operating profit increased to $2.9Billion, or $2.65 per Share, from the $2.36Billion or $2.24 Per Share it reported one year ago.

Also, from 12.7% to 13.7%, the company increased its adjusted operating margin goal for the full year to around 13%.

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