Friday, June 14, 2024
Domestic and international packages make up for weak freight at UPS

Domestic and international packages make up for weak freight at UPS

UPS has seen second quarter net profits increase by 3.2 per cent to $1.27 billion with US domestic and international packages making up for supply chain & freight weakness.

The operating profit was up four per cent to $2 billion, with US domestic growing 2.7 per cent to $1.2 billion, followed by international package up 11.1 per cent to $613 million. Supply chain & freight was down 7.2 per cent to $192 million.

UPS says the domestic growth came from Next Day Air, while international saw Daily Exports from Europe and Asia offsetting lower US levels. It says the Europe – US grew at a double-digit pace because of the strong US dollar, and export shipments increased across all categories with premium outpacing non-premium. Supply chain & freight saw revenue growth from the distribution unit, in aerospace, automotive and particularly healthcare.

UPS chairman and chief executive officer, David Abney says: “We are investing to expand our global network, implementing new technologies and capturing new revenue in high-growth markets. These strategic investments in our diversified business again this quarter generated strong value for our customers and shareowners.”

Revenue grew by 3.8 per cent in the second quarter to $14.6 billion, with all business areas seeing increases. US domestic was up 2.4 per cent to $9 billion, international package increased by 1.1 per cent to $3 billion and supply chain & freight grew by 13.2 per cent to $2.5 billion.

In the first six months of 2016, the net profit was up 6.4 per cent to $2.4 billion. The US domestic operating profit was up 4.9 per cent to $2.3 billion, international packages rose by 13 per cent to $1.2 billion and supply chain & freight was down 5.3 per cent to $339 million.

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