UPS has reported a nearly 4% increase in revenue, volume growth in its air and international businesses and earnings in line with previous guidance, despite a weak global economy during the second quarter of 2001.
For the three months ended June 30, revenue totaled $7.6 billion, up 3.9% compared to the $7.3 billion reported for the same period a year earlier. Consolidated operating profits were $1.04 billion, down 10.3% compared to the $1.16 billion reported for the prior-year period. Earnings per diluted share were $0.55, an 8.3% decline from $0.60 the prior year, on net income of $630 million versus $695 million in the second quarter of 2000.
"We said three months ago that we would take the steps necessary to effectively manage our business through these tough times and that's exactly what we're doing," said UPS chairman & CEO Jim Kelly. "Our expense controls are working and we continue to grow in some of our key businesses, particularly international export and logistics. More importantly, we made significant strides in our strategy of expanding our global supply chain management capabilities."
Highlights for the quarter included continued growth in the company's logistics business, a double-digit gain in international export volume and an increase in domestic air volume, combined with effective controls on discretionary expenses.