Air Freight and Logistics

UPS profit rises 12% as pandemic spurs home deliveries

Key Points
  • UPS beat profit expectations, helped by a surge in home deliveries due to the pandemic.
  • Average daily volumes in the U.S. rose 13.8% on continued strength in residential demand, the company said.
A United Parcel Service delivery truck in San Francisco, California.
Getty Images

United Parcel Service beat profit expectations on Wednesday, helped by a surge in home deliveries due to the Covid-19 pandemic.

Average daily volumes in the United States rose 13.8% on continued strength in residential demand, the company said.

"Our results were fueled by continued strong outbound demand from Asia and growth from small and medium-sized businesses," Chief Executive Officer Carol Tomé said in a statement.

Last month, the company said it would hire more than 100,000 workers for the winter holiday season, which retailers are stretching out to avoid overwhelming a delivery network already taxed by pandemic-fueled online shopping.

Net income rose to about $2 billion, or $2.24 per share, in the quarter ended Sept. 30, compared with $1.75 billion, or $2.01 per share, a year earlier.

Excluding items, UPS earned $2.28 per share, beating analysts' average estimate of $1.90 per share, according to Refinitiv data.

Revenue rose to $21.24 billion from $18.32 billion in the same period a year ago.