UPS beats profit view on high-margin deliveries, cost controls

UPS beats profit view on high-margin deliveries, cost controls

(Reuters) -United Parcel Service Inc on Tuesday beat expectations for quarterly adjusted profit, as it prioritized shipments of high-margin parcels and kept a tight lid on costs amid a softening e-commerce environment.

The worlds largest parcel delivery firm has benefited in recent quarters from a strong focus on moving parcels that bring in more money. It also controlled costs better than rival FedEx Corp, despite having a unionized workforce.

UPS has invested in technology such as automated bagging, robotic sorting of parcels and autonomous vehicles, to cut costs and boost efficiency.

The company reported an adjusted profit of $3.62 per share for the fourth quarter, above Wall Streets expectations of $3.59 per share.

Meanwhile, net sales for the quarter fell 2.7% to $27.0 billion, missing analysts average estimate of $28.09 billion.

The company also authorized a new $5 billion share repurchase program.

(Reporting by Lisa Baertlein in Los Angeles And Shivansh Tiwary in Bengaluru; Editing by Shinjini Ganguli)

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