United Parcel Service is headquartered in Atlanta, Ga., but it serves more than 220 countries and territories worldwide, and it just realized its first quarter earnings of four percent on its e-commerce services. But what does that have to do with the average person, and why is the news top dog on Google right now?
According to UPS, their “e-commerce solutions resonated with customers,” leading their earnings per share to rise to $1.04 for the first quarter of 2013. Their net income rose as a result as well to $1.04 billion for the first quarter, which was a 7 percent net profit increase for the company. And what that means is that American investors in the company are seeing a better performance for their investment dollar as a result of the business’ savvy handling of day-to-day operations and attention to customer demand and need.
In addition, consumers are getting things their way at the transportation company known for delivering packages, and that always helps revenue. And with the expense of doing business being outweighed more by the profit of it, United Parcel Service is seeing a larger divide between cost and profit margins, hence the greater payout to their investors in dividends.
All-in-all, the great interest in UPS this Thursday morning has to do with the company making their customers and their investors very happy today, as one gets the product it wants and the other is getting more money for every dollar invested with them. It’s a win-win.