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Business First of Louisville - 10:51 AM EDT Thursday
UPS second quarter earnings up 22%
Brent Adams
Business First Staff Writer
United Parcel Service Inc.'s net income for the second quarter increased 22.2 percent to $986 million, or 88 cents a share, from $818 million, or 72 cents a share, a year earlier.
Revenue for the quarter rose to $10.2 billion, from $8.9 billion a year ago.
UPS attributed the gains to daily worldwide volume, which increased by 557,000 packages, to 14.1 million. About 387,000 of those packages came from the United States.
UPS also credited the addition of Menlo Worldwide Forwarding with helping boost revenue.
"Our U.S. domestic volume climbed well above our expectations, and the international segment's performance was outstanding with export volume growth exceeding 18 percent," UPS chairman and CEO Mike Eskew said in a news release.
During the quarter, Atlanta-based UPS (NYSE: UPS) became the first carrier to fly direct to Guangzhou, China. The shipper also launched a flight leg between Europe and the United States to bolster next-day service.
The company also announced it would expand express package service in China, where export volume increased by 99 percent year-over-year in the second quarter, and average revenue per package increased more than 9 percent.
Despite the news, UPS shares were down 29 cents, or 0.40 percent, to $72.53 in mid-morning trading.
On Friday, UPS will unveil its newest Louisville facility, a 90,000-square-foot air-service center located off Preston Highway across Interstate 65 from its Worldport hub at Louisville International Airport.
Worldport is UPS' largest air shipping hub.
About 600 workers specializing in contingency, meteorology, and flight control have been moved to the building from a four-story building at Louisville International, said UPS public relations manager Travis Spalding.
UPS has not decided how it will fill the space vacated by the air service center employees, Spalding said.