UPS reported a 26 percent profit increase to $1.7 billion in the second quarter, as the package-delivery giant grew its business and raised rates in an “uneven economic environment.”
The Atlanta-based company reported an 8.1 percent increase in revenue to $13.9 billion. Although volume growth in the U.S. was flat, UPS grew its international revenue 13.3 percent, largely though expanding its Asian air network to connect with Europe.
Revenue per package rose 6.3 percent in the international market, with currency fuel surcharges and rate increases contributing.
The company's supply chain and freight segment increased its revenue 7.4 percent to $2.3 billion and its operating profit 77 percent to $235 million, signaling significant improvements in its forwarding business. UPS Freight, the company's less-than-truckload carrier, increased its revenue 19 percent and improved its profitability.
UPS’s diluted earning per share increased 27 percent year-over-year to $1.05, excluding a $20 million after-tax gain on two real estate transactions. UPS reiterated its 2011 earning forecast of $4.15 to $4.40 per share.