UPS’ 2Q Earnings Dip
UPS Inc. said Tuesday that its second-quarter earnings dipped from a year ago, and the company predicted its earnings would rise by 4% to 13% in the second half of the year.
The Atlanta-based parcel and freight carrier earned $1.74 billion, or $1.13 per share, down from $1.79 billion, or $1.15, a year ago. Revenue rose to $13.51 billion from $13.35 billion.
Its earnings matched its forecast earlier this month in which the company lowered its full-year earnings outlook to $4.65 to $4.85 per share from a previous forecast. Last year, UPS earned $4.53 per share.
“Market conditions and shipper preferences clearly impacted our freight forwarding and international business,” Chairman and CEO Scott Davis said in a statement. “UPS is adapting to these conditions to ensure we deliver a solid second half.”
Its supply chain and freight unit’s operating profit dropped to $159 million from $202 million, while revenue fell to $2.2 billion from $2.3 billion.
Less-than-truckload unit UPS Freight’s revenue rose but its operating profit “declined slightly, due to increases in compensation and benefit expense,” the company said.
Domestic package operating profit was flat at $1.13 billion, while revenue rose to $8.24 billion from $8.06 billion. Average volume per day rose to 13.33 million units, from 13.08 million.
Its international package unit’s operating income slipped to $451 million from $454 million, while revenue climbed to $3.06 billion from $3.01 billion.
Separately, UPS announced Tuesday that it has ordered 1,821 fire-resistant containers for use in airfreight shipping. Delivery of the containers will begin in September and continue into next year.
“Fire onboard an aircraft has long been a top concern for the National Transportation Safety Board,” NTSB Chairman Deborah Hersman said in a statement released by the company. “We commend UPS for implementing this real-world solution that addresses our recommendations.”
UPS is ranked No. 1 on the Transport Topics Top 100 listing of U.S. and Canadian for-hire carriers.
