Several corporate profit reports recently have not been kind, but that’s not the case with UPS, Inc.
UPS reported second quarter 2016 net revenue at $1.27 Billion an increase of 3.2% in the second quarter last year. UPS reported that the increase in profits was helped by an increase in volume growth in the e-Commerce international package profitability. UPS’ Supply Chain and freight business on the other hand was not as rosy with a 15% decline in profitability. This was a direct result of weakness in both the freight forwarder and LTL market sectors during the second quarter of 2016.
David Abney, UPS CEO stated that UPS was “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.”
UPS’ package revenue in the US increased by 2.4% to $9 Billion. International revenue rose to $3.1 Billion let by a 10+% improvement in the Europe to US market. UPS reported that Supply Chain and freight revenue was 13% higher principally because of the Coyote Logistics acquisition. And finally, UPS’ LTL business unit saw tonnage fall 10% but the revenue per Hundred Pounds increased by 2.9% indicating better yields per shipment.
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