UPS (UPS) jumped the gun and pre-announced higher than expected earnings for Q1, even though their full Q1 report will be released on April 27th.
UPS is seeing a ‘significant acceleration’ in its international package and supply chain business.
It now expects to earn $0.71 per share on an adjusted basis in Q1 2010, compared to $0.52 in the year ago quarter and the $0.58 recently expected by consensus for Q1 2010.
Their international export volumes grew more than 9%, and non-U.S. domestic volumes shot up 24%. U.S. domestic daily volumes just started to grow again for the first time in over two years, rising very slightly.
Things are expected by UPS to get better for the rest of the year.
Kurt Kuehn, UPS’s chief financial officer, commented, “We expected the first quarter to be the most challenging of 2010 as the economic recovery gathered steam through the year. As it turned out, revenue was stronger than we expected due to international volume gains, increased yields in the U.S. and growth in Forwarding and Logistics. Also, the operating leverage in our streamlined network provided higher margins than anticipated.”
It’ll be worthwhile to watch both UPS and Fedex (FDX) at the very least today, though the news is relevant to many other transportation names, plus retail.
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