UPS has good quarter, even in 'sluggish' economy

United Parcel Service Inc. (NYSE: UPS) ran up an impressive third quarter, seeing net income rise 3.7% to $1.08 billion from $1.04 billion from the year-ago period even in the face of a perceived slower economy, gas pricing roller-coasters and a continuing housing market mortgage messes and subprime defaults. Still, the delivery and logistics business saw an increase in business.

UPS's Q3 EPS of $1.02 was assisted by improvements in the global carrier's supply chain and freight segment in the company's international business. Total revenue for the quarter rose to $12.21 billion from $11.66 billion in the year-ago quarter, with $7.55 billion of that figure coming from domestic business, which increased in volume to the tune of 1% for the quarter.

With the U.S. economy standing on solid ground from many respects, this kind of quarter was to be expected from the nation's largest delivery carrier. Although the stock market, housing and energy price gyrations have gripped the headlines for some time now, the American consumer (and business segment) sure is not standing by while decreasing transactions that lead to deliveries all across the nation. The domestic delivery growth rate of 1% stands testament to that. This morning, UPS shares trade at $76, up over 1.2% from Monday's market close.