April 27, 2017 / 11:58 AM / 7 months ago

UPS 1st-qtr profit tops estimates as revenue rises

NEW YORK (Reuters) - United Parcel Service Inc reported a higher quarterly net profit on Thursday as revenue grew across its domestic, international and supply chain and freight segments.

FILE PHOTO: United Parcel Service air craft are being loaded with air containers full of packages bound for their final destination at the UPS Worldport All Points International Hub during the peak delivery month in Louisville, Kentucky, December 3, 2015. REUTERS/John Sommers II/File Photo

Often seen as a bellwether of U.S. economic activity, UPS said revenue increased to $15.315 billion in the first quarter from $14.418 billion in the year-ago period.

Revenue at the company’s domestic segment rose 5 percent to $9.535 billion from $9.084 billion a year ago, with the company saying e-commerce demand was strong.

Like other package delivery companies, UPS has benefited from a rapid rise in e-commerce, but has struggled to bring down the extra costs associated with making stops at individual residences rather than at businesses.

The Atlanta-based company posted first-quarter net income of $1.158 billion, or $1.32 per share, up 2.4 percent from $1.131 billion, or $1.27 per share, a year earlier.

Analysts, on average, expected earnings per share of $1.29.

Reporting by Luciana Lopez in New York; Editing by Jeffrey Benkoe

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