UPS – strong Q2 profit growth

Revenues at UPS grew by 3.4% to $18bn in Q2 of the current financial year. Operating profit jumped by 21%.

Average daily volumes in the US grew strongly in the period, and in the International segment it saw higher quality currency neutral revenues.

“Our Transformation initiatives are generating greater efficiencies across the network and, when combined with our growth strategies, UPS achieved profit growth in all segments,” said David Abney, UPS chairman and CEO. “We also announced a very extensive roll-out of new products and services such as UPS My Choice for Business, expanded UPS Access Points, and UPS Worldwide Economy, among others, for small- and medium-sized businesses, all designed to generate additional profitable growth.”

The US domestic business saw significant volume growth in all products, led by a more than 30 per cent surge in UPS Next Day Air volume. The sharp increase in demand for the company’s next-day services was driven by accelerated delivery requirements from e-commerce shippers.

“Demand for faster delivery is a structural change in our industry,” said Abney. “Anticipating this change, our additional air capacity and modernized network enabled this growth to have a positive impact on profitability and positions UPS well to serve the growing needs of the market.”

Share

Comments are closed.