ATLANTA, May 12 /PRNewswire/ -- Driven by its growing express and
international businesses, UPS today reported higher revenue and strong gains
in net income for the first quarter.
    The most notable aspect of the first-quarter results was the swing by the
company's international operations.  UPS posted international pre-tax income
of $34.5 million during the first three months of the year contrasted with a
loss of $31.1 million during the period a year ago.  Total international
revenues likewise rose significantly, up 15.8% from $708.5 million in the
first quarter of 1997 to $820.6 million during the same period this year.
    For the quarter ending March 31, 1998, UPS reported total revenues of
$5.86 billion and net income of $351.6 million.  That compared to revenues of
$5.66 billion and net income of $227.7 million for the same period in 1997.
The profit improvement was aided by the company's cost-containment efforts as
well as favorable fuel prices compared to 1997.
    UPS domestic volume during the first quarter was down 4%, primarily due to
declines in ground package deliveries in the United States.  The decline in
domestic ground was partially offset by an 8.9% increase in UPS Next Day
Air(R) volume.  Outside the United States, international volume surged 17%
during the quarter.  With the lag in domestic ground volume, U.S. employment
levels were down 10,600 -- at 290,200 -- compared to March 31, 1997.
    "We're very pleased with our overall performance," said Jim Kelly, UPS
Chairman and CEO.  "While our domestic volume still trails year-ago levels,
UPS continues to implement new products and service enhancements that will
keep our business strong and growing."
    The quarterly results were released as UPS demonstrated its leadership
with two industry-first offerings -- Guaranteed Ground for all commercial
ground shipments nationwide and Document Exchange, a highly secure, Internet-
based electronic document delivery service.
    The advent of Guaranteed Ground service, which UPS initiated without
charge on May 4, effectively made the company the world's largest express
package and document delivery company.  UPS now delivers more packages
overnight and in two days that are tracked and guaranteed than any other
company in the industry.
    Document Exchange, meanwhile, is scheduled to launch during the current
quarter, expanding the company's product portfolio to include the industry's
first secure electronic delivery over the Internet.  Document Exchange will
provide state-of-the-art technology to alleviate customer anxiety over
security, while also offering features such as user authentication, proof of
delivery and archiving.
    On the international front, UPS recently announced several new joint
ventures and alliances to further extend its reach and services to more than
200 countries and territories around the world.  Highlights include a new
weekly cargo flight from the UPS air hub in Louisville, Ky., to Sydney,
Australia; enhanced service to and from New Zealand; the opening of a new
240,000-square-foot logistics warehouse and distribution center in Mexico, and
several performance and guarantee enhancements.
    "When we released our fourth quarter results, I said the company was in a
better position to compete than it was a year ago,"  Kelly said.  "That
remains true.  No one can really match the scope of what we're doing with
guaranteed ground.  And no one can match the international infrastructure, the
technology and the service plans we've made for the future."
    UPS is the world's largest express carrier and largest package delivery
company, offering an unmatched array of products and services.  Headquartered
in Atlanta, Ga., the company operates in more than 200 countries and
territories and has been named by Fortune Magazine as the most admired company
in the transportation industry for 15 consecutive years.

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