(Alliance News) - United Parcel Service Inc on Tuesday hailed its actions to reduce cost as it reported higher profit despite decreased revenue.

The Atlanta, Georgia-based courier said revenue weakened slightly, by 0.7%, to USD21.55 billion in the three months to the end of March from USD21.71 billion a year ago.

Net income climbed 6.6% to USD1.19 billion from USD1.11 billion. Operating profit increased 3.3% to USD1.67 billion from USD1.61 billion.

The operating margin improved to 7.7% in the first quarter from 7.4%.

"As a trusted leader in global logistics, we will leverage our integrated network and trade expertise to assist our customers as they adapt to a changing trade environment," said Chief Executive Officer Carol Tome.

"Further, the actions we are taking to reconfigure our network and reduce cost across our business could not be timelier. The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS."

In the key US Domestic segment, revenue grew 1.4% to USD14.46 billion from USD14.27 billion driven by increases in air cargo and an improvement in revenue per piece.

Revenue was up 2.7% to USD4.37 billion from USD4.26 billion in the International segment. Supply Chain Solutions revenue fell 15% to USD2,71 billion from USD3.18 billion, primarily due to the sale of Coyote Logistics.

UPS did not give any update to its previous full-year outlook due to "current macro-economic uncertainty".

Shares in UPS were up 2.0% to USD99.03 in premarket trading on Tuesday morning in New York.

By Michael Hennessey, Alliance News reporter

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