For the three months ended Dec. 31, UPS earned $724 million, or 63 cents a share, compared to $661 million, or 56 cents a share, in the year-earlier period.
Analysts on average expected UPS to earn 61 cents, according to research firm First Call/Thomson Financial, which tracks consensus data.
That estimate was lowered from 64 cents last month after UPS announced that a slowdown in the U.S. economy appeared to be cutting into its holiday package volumes.
UPS' global volume — a key measure of financial health in the package delivery industry — averaged 14.7 million pieces a day in the quarter, up 3.6 percent from the same period last year.
UPS averaged volume of about 1.3 million pieces a day for its entire international service, a 13.3 percent gain from last year. Volumes for the company's U.S. domestic package business averaged about 13.5 million pieces a day, a 2.8 percent rise over the year-earlier period.
UPS, which was recently awarded a new China route, said it "remained bullish" on its international markets. BACK TO TOP