United Parcel Service Inc.'s profit and revenue keep rising even as the number of packages moving through its network keeps declining, The Wall Street Journal reported.
The carrier’s average daily parcel volume in the U.S. fell a more-than-expected 4% last quarter, and 4.8% across all its services. Rising prices and higher fuel surcharges more than offset the drop, however, and that revenue rose 5.7% to $24.8 billion while net profit surged 6.5% to $2.85 billion.
Yields were up by double digits, suggesting that UPS is succeeding in efforts to focus on profitable accounts and shrug off shipments with poor returns. That includes dropping more Amazon residential-delivery business.
UPS projects revenue from Amazon will make up less than 11% of its total revenue by year’s end, down from 13% in 2020. It’s the latest sign the company is moving past the surge in e-commerce volume driven by the pandemic.
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