UPS, a global logistics company, has posted an operating profit of $2.21 billion for the second quarter (Q2) of the year, as compared to $2.03 billion for Q2 2016, marking an 8.7 per cent rise.

The company attributed the increase in profit to strong performance in the US domestic and supply chain and freight segments.

It announced earnings per share of $1.58 for the second quarter of 2017, an increase of 11 per cent versus the same period in 2016.  The improved earnings per share was due to 7.7 per cent higher revenue.  All three business segments generated more profitable product mix, improved yields and better management of operating costs.

“UPS generated great year-over-year revenue gains in the second quarter and we produced solid earnings per share growth, consistent with our plans,” said David Abney, UPS chairman and CEO. “We continue to invest in our network to expand our capabilities, our market presence and our global reach.”

The company posted Q2 revenue of $15.75 billion for the quarter, marking a 7.7 per cent from the revenues of $14.62 billion for Q2 2016.

US domestic segment

The Domestic segment benefitted from growing demand for ecommerce deliveries, which fuelled an 8.1 per cent increase in revenue over 2Q 2016.  The U.S. consumer increasingly prefers to shop online and UPS is taking advantage of this trend through its unique portfolio of delivery solutions and industry-leading customer-facing technology.

International segment

The International segment generated solid top-line improvement with increased demand for cross-border shipments. Export shipments grew across all UPS regions, as customers took advantage of UPS’s expanded portfolio, improved time-in-transit and industry-leading customs brokerage solutions.  The International segment also made several announcements to expand its capacity and local-market presence.

Supply chain and freight segment

“The Supply Chain and Freight segment again showed good momentum this quarter as the teams in each business unit are executing on revenue quality improvements combined with structural cost reduction programs,” Abney said. “This performance shows balanced improvement across all business units as revenue and operating cost initiatives strengthen core performance.”
    
Outlook

“Second quarter results were in line with our expectations and we are pleased with the progress on our strategic initiatives,” said Richard Peretz, UPS chief financial officer.  “Looking at the second half of the year, our core business performance will continue to produce solid results.” – TradeArabia News Service