Jonathan S. Reiskin |
UPS Inc. generated 7.7% more global revenue during the second quarter and improved net income by 9.1%, year-over-year, based on “balanced performance across all segments,” North America’s largest trucking company reported July 27, as all three of its major segments were profitable.
The Atlanta-based corporation earned $1.38 billion, or $1.58 per share, on revenue of $15.75 billion. The company beat the EPS consensus from Bloomberg News by 11 cents a share.
In the 2016 second quarter, UPS earned $1.27 billion, or $1.43, on revenue of $14.63 billion.
International Package was the only segment not to increase operating profit, which declined to $583 million from $613 million in the 2016 second quarter. Revenue increased to $3.16 billion from $3.08 billion over the same time.
Company managers estimated that the strengthening U.S. dollar diminished the division’s quarterly profitability by $114 million and offered a “currency neutral” profit figure of $697 million for International Package’s quarter that just ended.
Chairman and CEO David Abney said in the earnings call after the release of results that International’s 14.8% operating margin was “outstanding,” especially “in the face of currency headwinds.”
UPS’ two truck-heavy businesses are the ground segment of Domestic Package and less-than-truckload carrier UPS Freight.
Quarterly ground revenue grew by 7.6% for the quarter to $6.97 billion, faster than volume, which rose by 4.2%, year-over-year, to 13 million packages per day.
UPS Freight, North America’s fifth-largest LTL, posted quarterly gains in revenue, number of shipments and gross weight hauled, and pricing.
LTL revenue rose by 8.7% to $652 million for the quarter, as total tonnage gained 8.1% to 2.76 billion pounds.
LTL revenue per hundredweight, a measure of yield or pricing, ticked up 0.6% to $23.62 from $23.47 in the 2016 second quarter.