UPS second quarter profit up 57pc to US$1.4 billion

UPS has posted a 13 per cent increase in global revenue to US$12.2 billion in the second quarter as operating profits surged by 57 per cent to $1.4 billion.

Forwarding volumes rose more than 30 per cent year on year, but "margin expansion was limited due to capacity constraints in the global air freight market," reports London's International Freighting Weekly.

UPS Supply Chain and Freight division saw revenue hit $2.16 billion, up from $1.79 billion a year earlier.

"UPS Freight's revenue grew 10 per cent over the past year, driven by improved yield and higher weight per shipment," the company was cited as saying in a statement.

"We experienced strong revenue growth across the board, with substantial margin expansion in our US and international segments," said UPS chief financial officer Kurt Kueh.

"Despite the anticipated slow pace of the US recovery and a cautious outlook for Europe, we are confident in our ability to grow the business and improve profits," he said.
(Source:www.schednet.com)