UPS exceeded market profit expectations and is also launching a massive downsizing package where 34,000 jobs will be eliminated this year.
The company has already closed 93 leased and owned offices this year and is now aiming to reduce costs on an annual basis by $3.5 billion by the turn of the year.
The adjusted profit for the third quarter was $1.74 per share, down from $1.76 a year earlier. But it was significantly better than the average forecast of $1.32 per share, according to Bloomberg's compilation of forecasts.
The UPS surge on Wall Street after the report comes after the company has so far this year lost 29 percent of its value.
For the fourth quarter, UPS expects revenue of $24 billion, slightly more than analysts had previously expected. The operating margin is expected to be 11.0-11.5 percent, compared to the expected 10.4 percent.
