- U.S. revenue per package rises 2%, double last year’s increase
- Adjusted profit meets estimates, forecast raised at lower end
United Parcel Service Inc. is showing it can make money from the surge in online shopping, just in time for the crucial holiday season.
Revenue for each package in the U.S. climbed 2 percent in the third quarter, the courier said Thursday as it reported earnings. That more than doubled the increase of a year earlier, before the world’s largest package-delivery company implemented higher prices and new fees on over-sized items.
The sales gain for each parcel is bolstering results as UPS seeks to reap the rewards of stepped-up investments in automated warehouses, new jets and upgraded technology. The year-end shopping rush will test the company’s efforts to improve the efficiency of home deliveries, which are booming because of e-commerce — but are far less profitable than shipments to businesses.
The “result was impressive, particularly considering weather-related/natural disaster disruptions in the U.S.,” Benjamin Hartford, an analyst at Robert W. Baird & Co., said in a note. “International segment results remain outstanding.”
The shares fell less than 1 percent to $117.81 at 9:42 a.m. in New York. UPS has advanced 3.4 percent this year, trailing the 14 percent gain of a Standard & Poor’s index…