UPS reports 2Q revenue, profit both up

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UPS today, July 24, reported a 7.2 increase in diluted earnings per share for the second quarter to $1.04 on a 3.9 percent gain in revenue. Strong performance by the international package segment and encouraging trends in supply chain and freight overcame a challenging U.S. small package market, the Atlanta-based company said.

International export revenues jumped 14 percent on double-digit volume growth. UPS Freight less-than-truckload revenue climbed 10.5 percent on a 12 percent increase in shipments.

“The company’s total performance reflects the benefits of our truly global network,” said Mike Eskew, UPS’s chairman and chief executive officer. “Strong gains in our international package segment offset a lack of growth in the U.S. business. We’re also executing well in our supply chain and freight business and are pleased with the profit improvements in this segment. We remain confident in the long-term growth prospects that the dynamic global marketplace offers UPS.”

Consolidated results for the second quarter, as compared to the year-ago period:

  • Revenue was $12.19 billion, up from $11.74 billion;
  • Operating profit was $1.77 billion, up from $1.70 billion;
  • Operating margin was 14.5 percent, up from 14.4 percent;
  • Average volume per day was 15.03 million, up from 14.97 million; and
  • Diluted earnings per share were $1.04, up from $0.97.
  • For the three months ended June 30, net income rose 4.1 percent to $1.1 billion. Operating margin increased to 14.5 percent, with improvements in both the international package and supply chain and freight segments.