UPS earnings soar 71 per cent
10 / 08 / 2010
UPS reported a 71 per cent jump over the adjusted earnings of the prior-year period. Global revenue increased 13 per cent, generating a 57 per cent increase in operating profit to US$1.4 billion.
“UPS fired on all cylinders in the second quarter even in the face of a mixed global economic environment,” said Scott Davis, UPS’ chairman. “Our US domestic reorganisation is producing better than expected results. Substantial growth in our international segment continues to outpace the market. It’s clear the strategic direction we’ve set for the company is proving successful.”
The international operating profit increased 78 per cent to $521 million on a 23 per cent jump in revenue. Export volume increased 15 per cent, outpacing the market due to strong growth in all regions with Asia leading the way, up more than 40 per cent. Overall volume increased 24 per cent, driven by an acquisition in Turkey in the third quarter of last year as well as 13 per cent organic growth, powered by strength in core European countries and Canada.
Forwarding was the most successful business unit with tonnage growth exceeding 30 per cent. However, margin expansion was limited due to capacity constraints in the global airfreight market.