International Profits Boost for UPS

International Profits Boost for UPS

Operating profit rose 11 per cent at UPS’s International Package business in the second quarter, but this was partially offset by a slip in profits at the Supply Chain and Freight business.

Supply Chain and Freight revenue increased by more than 13 per cent, to $2.5 billion, mainly due to the acquisition of Coyote Logistics in the third quarter of 2015.

However, weak market conditions in the Air Freight Forwarding and LTL markets weighed on top-line growth and operating profit was down 7.2 per cent to $192m.

International operating profit jumped more than 11 per cent to $613 million, on revenue up 1.1 per cent.

Daily Export packages increased 3.9 per cent, as growth out of Europe and Asia offset lower U.S. levels. The Europe-to-US trade lane increased at a double-digit pace, as customers used the UPS network to benefit from the strength of the U.S. dollar. Export shipments increased across all product categories and premium products outpaced non-premium.

Total revenue was $14.6 billion, up 3.8 per cent over the same quarter last year, while total operating profit was up four per cent to $2 billion.

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

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