Global Shipping Improves; UPS Profit Soars

UPS Inc. on Thursday raised its full-year earnings forecast as strong demand for goods out of Asia continued and the U.S. market showed more signs of life.

The world's largest package delivery company, which is based in Atlanta, issued the outlook as it reported third-quarter earnings jumped 81 percent.

UPS now expects adjusted 2010 earnings to be $3.48 to $3.54 per share. The previous forecast was $3.35 to $3.45 per share. Analysts expect a profit of $3.45 per share.

In the June to September period, operating profit growth at the company's U.S. domestic package and supply chain units outpaced UPS' already-booming international shipping division. The supply chain unit offers behind-the-scenes support to companies that need help moving goods more efficiently.

Higher prices helped drive results across all units. The average number of packages shipped per day in the U.S. rose 3.6 percent, while revenue per package rose 4 percent. Average daily shipping volume internationally, led mostly by shipments of electronics from Asia, rose 13 percent. In Asia alone, volume jumped 30 percent.

UPS plans to reinstate the 401(k) match for employees that was halted during the recession.

United Parcel Service Inc. earned $991 million, or 99 cents per share, in the third-quarter. On an adjusted basis, UPS earned 93 cents per share, 5 cents higher than Wall Street analysts were expecting.

A year earlier, UPS earned $549 million, or 55 cents per share.

Revenue rose 9 percent to $12.19 billion.