UPS posts revenue and net income rise in Q2

UPS said today that in the second quarter (Q2) of this year ending 30 June that adjusted net income was $1,685 million, up 22 per cent on the $1.3 billion in Q2 last year.

The integrator also reported total revenue was up 9.6 per cent fuelled by strong growth across all segments and pricing to $17.4 billion, up on the $15.9 billion in Q2 in 2017.

UPS chairman and chief executive officer, David Abney said: “UPS is making great progress on our transformation initiatives to enhance profitable growth and improve operating leverage.

“We are confident that our strategies will position the company to provide improved value for customers and shareowners.”

The US domestic segment experienced strong revenue growth of 6.3 per cent to $10.3 billion, driven by e-commerce demand and increased revenue per piece over the prior year.

The international segment delivered its 14th consecutive quarter of currency neutral double-digit operating profit growth and was led by the Europe region. Revenue was up 14 per cent to $3.6 billion, up on the $3.1 billion in Q2 last year.

The supply chain and freight segment grew strongly with revenue up 16 per cent to $3.5 billion and UPS said the forwarding business led all units with 23 per cent revenue growth, as revenue management initiatives drove top-line improvement.

UPS Freight revenue increased 13 per cent on higher pricing and tonnage gains.

“The Supply Chain and Freight segment delivered another quarter of double-digit growth in revenue and adjusted operating profit,” said Abney. “Our targeted growth strategies and improved efficiencies produced the segment’s best profit growth in its history.”