United Parcel Service Inc reported a higher-than-expected quarterly net profit on Thursday as revenue grew across its domestic and international package delivery segments and as well as freight and supply chain operations. Often seen as a bellwether of US economic activity, UPS said revenue increased to $15.315 billion in the first quarter from $14.418 billion in the year-ago period, above expectations of $15.17 billion in revenue. "We think of it as a good start, and we're determined to have a good finish to the rest of the year," Chief Executive Officer David Abney said in an interview with Reuters.

During the quarter, UPS invested to expand its new Saturday deliveries, with $35 million in increased costs from facility construction and the Saturday initiative. Revenue at its domestic segment rose 5 percent to $9.535 billion from $9.084 billion. For international, revenue was also up 5 percent to $3.058 billion, and in supply chain and freight, it jumped 12.5 percent to $2.722 billion.

The company said the domestic business was affected by one-time costs of $50 million from a lag in a fuel surcharge, poor weather and a facility fire. The company now picks up and delivers ground packages on Saturday in 15 US metropolitan areas, with plans to expand to more than 4,700 US cities by the peak 2017 holiday season. Operating expenses rose 7.4 percent to $13.531 billion from $12.595 billion in the year-ago quarter. The Atlanta-based company posted first-quarter net income of $1.158 billion, or $1.32 per share, up 2.4 percent from $1.131 billion, or $1.27 per share, a year earlier.

Copyright Reuters, 2017