The company’s shares surged over 7% this afternoon.
United Parcel Service (UPS) reported profits of $1.31 billion (€1.13 billion), or $1.55 per share, for the quarter ending September 30.
The Atlanta-based company had earned $1.99 billion (€1.71 billion), or $1.18 per share, the previous year. Excluding non-recurring costs, the profit was $1.74 per share.
These results surpassed the expectations of analysts consulted by Zacks Investment Research, who had predicted $1.31 per share.
Total revenue reached $21.42 billion (€18.41 billion), exceeding Wall Street analysts’ estimates, which were projected at $20.84 billion (€17.91 billion).
UPS also stated that it had cut around 34,000 operational positions and ceased daily operations in 93 leased and owned buildings during the first nine months of this year as part of its recovery plan.
The company further announced plans to cut approximately 14,000 jobs, primarily in management, and is still identifying additional facilities for closure.
In April, UPS announced plans to cut around 20,000 jobs and close over 70 facilities, drastically reducing the number of Amazon shipments it processes. At that time, the company anticipated closing 73 leased and owned buildings by the end of June. The company indicated that it was still reviewing its network and might identify more buildings for closure.
In January, UPS announced it had reached an agreement with Amazon, its largest client, to reduce order volume by more than 50% by the second half of 2026.
During the fourth-quarter earnings call in January, CEO Carol Tomé noted that the company had been a partner with Amazon for nearly 30 years, and when the contract expired this year, UPS decided to reassess the relationship.
UPS achieved cost savings of approximately $2.2 billion (€1.89 billion) as of September 30. The company expects to achieve total cost savings of $3.5 billion (about €3 billion) compared to the previous year by 2025.
