UPS reports 49% drop in profit

UPS reports 49% drop in profit    UPS reported Thursday second quarter profit of $445 million, 49 percent less than it earned in the same 2008 period.
   Consolidated revenue was $10.8 billion, 16.7 percent below the prior-year quarter, while consolidated volume was 914 million packages, down 4.7 percent.
   “The global economic environment pressured our performance, but UPS remains financially very strong,” said Scott Davis, UPS chairman and chief executive officer. “We continue to invest in growth opportunities, even as UPSers improve productivity and help our customers manage through these challenging times. We are a company that can weather this recession, positioning ourselves well to benefit when economic recovery occurs.”

Davis

   The company saw revenue declines in all three of its major business segments:
   ' U.S. Domestic Package revenue was $ 6.8 billion, down 12 percent.
   ' International Package revenue, $2.2 billion, down 23.8 percent.
   ' Supply Chain and Freight revenue, $1.8 billion, down 23.2 percent.
   “The economic environment continues to be difficult. Declines in both our domestic and international businesses appear to be stabilizing but volumes will remain significantly below last year’s levels,” said Kurt Kuehn, UPS’s chief financial officer.
   “Although declines in economic indicators are less dramatic than earlier in the year, questions remain as to when business activity will begin to strengthen,” he continued. “The business environment in the third quarter should be similar to the second quarter. We are exceeding targeted cost savings, without compromising our high levels of service, while also investing for the future. We are managing our business with a keen eye on balancing cost cutting with strategic investment.”