(Reuters) – United Parcel Service Inc on Tuesday reported a rise in third-quarter adjusted profit as higher delivery prices offset softening e-commerce demand.
In the wake of falling e-commerce demand and receding domestic volume, delivery firms such as UPS and FedEx Corp have banked on higher-paying small businesses and enterprise customers to drive volumes and earnings.
Revenue per piece in the company’s biggest and e-commerce-dependent domestic unit rose 9.8% for the quarter from a year earlier even as demand weakens in the broader e-commerce market. “The macro environment is very dynamic, but we are on track to achieving our 2022 financial targets by executing our strategy and controlling what we can,” UPS Chief Executive Carol Tomé said.
The company reaffirmed its full-year revenue forecast of about $102 billion and adjusted operating margin of around 13.7%.
The world’s largest parcel delivery firm’s adjusted third-quarter profit rose to $2.99 per share, from $2.71 per share, a year earlier.
Quarterly revenue rose 4.2% to $24.2 billion.
(Reporting by Shivansh Tiwary in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Vinay Dwivedi)