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UPS profit rises 23% on e-commerce demand

A United Parcel Service driver unloads package in the Lincoln Park neighborhood of Chicago, Illinois, U.S., on Monday, Nov. 30, 2020.

Christopher Dilts | Bloomberg | Getty Images

United Parcel Service reported a 23% rise in quarterly profit on Tuesday, bolstered by high e-commerce demand that has allowed the delivery firm to raise shipping prices and cherry-pick more profitable customers.

UPS and rival FedEx are delivering record number of e-commerce packages since Covid-19 shifted shopping online.

Both have added profit-sheltering surcharges to offset the higher cost associated with home deliveries, and now are grappling with the sharply higher cost to hire and retain dependable drivers.

UPS’ third-quarter operating profit rose to about $2.9 billion, or $2.65 per share, from $2.36 billion, or $2.24 per share, it had reported a year earlier.

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

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