UPS 2nd quarter net income up 26%

UPS 2nd quarter net income up 26%    UPS reported on Tuesday second quarter net income of $1.06 billion, a 26 percent increase over the same period last year.
   Revenue was $13.19 billion in the quarter, 8.1 percent higher than the $12.2 billion earned in the second quarter of 2010.
   The company said revenue for its U.S. domestic package business increased 6.4 percent to $7.73 billion in the second quarter. Operating profit during the period was $981 million, up 31 percent on an adjusted basis. 'Volume growth was flat as a result of the slow U.S. economy,' it said.
   UPS's international package business revenue increased 13.3 percent to $3.93 billion, though operating profit was down 4.6 percent to $497 million, on an adjusted basis.
   UPS said, however, its international package business was buoyed by strong demand in both Europe and China. 'Revenue per piece climbed 6.3 percent with currency, fuel surcharges, rate increases and product mix all contributing,' the company said.
   The company's supply chain and freight business generated $2.31 billion in revenue during the second quarter, up 7 percent over the same period last year, while operating profit jumped 40.6 percent to $187 million, on an adjusted basis.
   'UPS Freight revenue increased 19 percent over the prior-year period, driving improved profitability,' the company said. 'The business saw strong increases in LTL (less-than-truckload) revenue per hundredweight and gross weight hauled, up 11.2 percent and 6.2 percent, respectively.'