UPS profit increased 23% due to high demand for e-commerce

United Parcel Service (UPS) revealed on Tuesday a 23% increase in its quarterly earnings, supported by the high demand for e-commerce which has allowed the parcel carrier to raise shipping prices and select more profitable customers.

UPS and his rival FedEx are transporting record volumes of e-commerce packages since the Covid-19 pandemic changed people’s spending habits to focus on online shopping.

Both have added surcharges that protect profits to offset the higher expense associated with Home delivery, and now they are dealing with the considerably higher cost of hiring and retaining delivery workers and drivers.

UPS operating profit in the third quarter they rose to about $ 2.9 billion, or $ 2.65 per share; And they compare with a profit of $ 2.36 billion, or $ 2.24 per share, reported in the same period of 2020.

The company also raised its full-year adjusted operating margin target to roughly 13% from about 12.7% previously.

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