UPS Posts Strong Gains as Package Volumes Swell - Morningstar
United Parcel Service Inc. is delivering more packages, but it is paying a much bigger price to do so.
The delivery giant said revenue rose nearly 16% in the third quarter and profit rose 11.8% amid an influx of packages moving domestically and internationally during the pandemic. Despite the boost, UPS's large domestic business posted a sharp decline in profits due to the need to hire tens of thousands of new workers, lower margins from delivering packages to homes and $179 million in spending to speed up delivery times.
The decline in U.S. profits and continued higher costs heading into the holiday season weighed on shares, which fell more than 5% in early trading amid a broader market selloff. They are still up nearly 40% for the year.
United Parcel Service Inc. is delivering more packages, but it is paying a much bigger price to do so.
The delivery giant said revenue rose nearly 16% in the third quarter and profit rose 11.8% amid an influx of packages moving domestically and internationally during the pandemic. Despite the boost, UPS's large domestic business posted a sharp decline in profits due to the need to hire tens of thousands of new workers, lower margins from delivering packages to homes and $179 million in spending to speed up delivery times.
The decline in U.S. profits and continued higher costs heading into the holiday season weighed on shares, which fell more than 5% in early trading amid a broader market selloff. They are still up nearly 40% for the year.
