UPS's consolidated operating profit and net income dipped during the second quarter, but the carrier said the renegotiation of the Teamsters labor contract will help it regain diverted U.S. domestic business during the third quarter.
The new labor contract "is good for both employees and the company," said CFO Scott Davis. "We're confident that this contract will allow us to remain competitive and grow the company. " For the period ending June 30, revenue totaled $7.68 billion, up 2.5% over the prior year. However, its consolidated operating profit declined 1.2% to $1.03 billion and net income fell to $611 million compared to the prior year's $630 million. Within the U.S. domestic segment, revenue totaled $5.91 billion, down 1.2% compared to the prior year. Operating profit declined 6.9% to $899.
Total U.S. domestic package volume declined 2.6% for the quarter, with volume down 4% in June due to slow economic conditions and package diversion to competitors prior to the conclusion of the Teamster talks.