UPS Net Income Rises to $1.27 Billion in Second Quarter
UPS Inc. boosted second-quarter net income by 3.2% to $1.27 billion, or $1.43 per share, led by higher domestic and international profitability.
UPS, which ranks No. 1 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers, improved revenue 3.8% to $14.6 billion. Earnings in last year’s second quarter were $1.23 billion, or $1.35 per share.
Profit before interest and taxes rose 2.7% to $1.2 billion at the domestic package unit, reflecting 2.5% volume growth that was helped by e-commerce. International package profitability on that basis rose 11% to $613 million, which was the sixth straight quarter of growth topping 10% at that unit. Supply chain and freight business lagged, with a 15% decline in profitability to $192 million, hurt by the weak market in freight forwarding and the less-than-truckload sector.
“We are investing to expand our global network, implementing new technologies and capturing new revenue in high-growth markets,” David Abney, CEO of UPS, said in a statement. “These strategic investments in our diversified business again this quarter generated strong value for our customers and shareowners.”
Package revenue in the U.S. climbed 2.4% to $9 billion. International revenue rose to $3.1 billion, led by more than 10% improvement in the Europe-to-U.S. market. Supply chain and freight revenue was 13% higher at $2.54 billion, helped by the acquisition of Coyote Logistics.
At Supply Chain and Freight, distribution and truckload brokerage performed better. The LTL unit’s tonnage fell 10%, but revenue per 100 pounds of freight was 2.9% higher.
The Atlanta-based company, whose results matched the average analyst estimate, maintained its full year profit forecast of $5.70 to $5.90 per share.
