UPS executives said U.S. domestic volume growth was “well ahead” of second quarter expectations and international export volume continued to climb at a double-digit rate as expected.
The company cited good momentum through the first five weeks of the quarter. In the first quarter, UPS reported significant international export package growth and a strong 16.2% gain in net income.
According to a press release, UPS continues to expect a strong 2005 with full-year net income growth of 16-to-20% over the adjusted $2.90 reported for 2004. Going forward, the integration of Menlo Worldwide Forwarding is progressing so well that UPS expects $50-to-$100 million in net synergies in 2006 and at least $200 million in 2007.
“We have an aggressive plan in place that is helping UPS to move ahead around the world and we are seeing results,” declared UPS Chairman and CEO Mike Eskew. “We will grow our top line and the bottom line while maintaining industry-leading margins. We will grow in all markets, across all continents. That means small package in the U.S. as well as internationally and the expansion of freight services around the world.”
Eskew as well as CFO Scott Davis and other executives met with investors and equity analysts today to discuss the company’s future. According to Davis , the company’s effort to stimulate volume growth in the U.S. domestic business was gaining traction, particularly among mid-size companies.
“Momentum in the U.S. domestic business is visible in the early weeks of this quarter,” Davis said. “Through the first week of May, we are well ahead of our 2% guidance for total volume growth.”
The company said that it would continue to consider acquisitions if the markets are attractive and “offer compelling synergies”. UPS shares went up $1.37, or 1.9% in premarket trading.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
