UPS 2nd quarter profits soar

UPS 2nd quarter profits soar    United Parcel Service said net income rose 18.2 percent to $818 million for the second quarter on a 7.8 percent increase in revenue led by strong growth in its global small package delivery business.
   Total revenue for the period ending June 30 was $8.87 billion. Operating profit climbed 21.3 percent to $1.31 billion.
   Total average daily package volume worldwide rose to 13.6 million, up 550,000 packages per day compared to the same 2003 period. Average daily U.S. domestic ground volume increased 4.9 percent and revenue rose 5.8 percent to $6.48 billion. Domestic operating profit gained 7.2 percent to $892 million and operating margin improved to 13.8 percent, the highest in two years. Total U.S. air and ground volume was up 3.8 percent.
   International export volume increased 13 percent, led by China with a gain of almost 70 percent, UPS reported. Asia export volume increased 17 percent and U.S. export volume grew 12 percent. International revenues gained almost 18 percent to $1.61 billion as average daily package volume rose 8.5 percent. Operating profit rose 72 percent to $272 million at the international unit, which now contributes more than 20 percent of UPS total operating profit.
   Excluding tax benefits from the sale of the company’s Mail Technologies unit last year, operating profit for the quarter rose 18.7 percent and net income was up 20.6 percent.
   For the first half of the year, revenue was $17.79 billion, up 9.5 percent, and operating profit jumped 24.8 percent to $2.53 billion.
   Revenue for the non-package segment grew 6.4 percent to $778 million, including $568 million for UPS Supply Chain Solutions.
   The company raised its earnings guidance for the full year to nearly 20 percent, up from the teens.