UPS reports revenue increase despite tough airfreight market

UPS’s supply chain and freight division recorded a 13% improvement in revenues during the second quarter of the year despite “weak conditions” in air forwarding.
The express giant’s supply chain and freight business saw second-quarter revenues reach $2.5bn compared with 2.2bn last year, largely thanks to the acquisition of Coyote Logistics during the third quarter of 2015.
It said that weak market conditions in the airfreight and less-than-truckload markets had weighed on top-line growth.
Despite this, the forwarding business expanded operating margins “through a focus on revenue quality and operating cost reductions”.
Overall, UPS saw second-quarter revenues increased by 3.8% to $14.6bn despite the negative effect of reductions in fuel surcharges and currency exchange rates. Net income was up by 3.2% on last year to $1.3bn.
UPS chairman and chief executive David Abney said: “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.”