US express and logistics provider UPS saw its third quarter operating profit dive 43% year-on-year, on the back of weak US domestic business.
Total revenues for the quarter were US$11.15bn, a drop of 15% over the $13.11bn revenue in the same period last year. Operating profit was $929m compared to $1.63bn.
The company said its domestic package business was down 3.6% in terms of volumes, while revenue per item declined 9.1%.
Its international package business fared better. Total revenue was $2.24bn, a drop of 18% year-on-year, and operating profit for the division was $313m, compared to $386m, a decline of 19%.
Its supply chain and freight division saw revenue decline $460m to $1.86m, a decline of 20%, and operating profit was down 21% to $102m, compared to $129m in the same period last year.
"Although revenue and operating profit declined in the quarter, operating margin was flat with last year due to excellent revenue management and cost control," a company statement said.
"Both the logistics and forwarding business units experienced moderation in the rate of revenue decline. The logistics unit again achieved significant growth from its services to the healthcare industry."
UPS chairman and CEO Scott Davies added that there were signs of economic improvement: "I'm encouraged by the signs of economic recovery that are becoming apparent, although we still have a long way to go. Ongoing strategic investment has positioned UPS to capitalise on growth opportunities around the world."
