UNITED Parcel Service (UPS) saw its second-quarter revenues and profits improve on a year earlier despite volume declines as shoppers return to retail outlets, reports London's Air Cargo News.
The US express firm achieved revenues of US$23.4 billion, a 14.5 per cent increase on the same period of 2020. The company also noted a 47.3 per cent increase in operating profit to $3.3 billion.
But its average daily volume (ADV) was down by 0.8 per cent as a result of a decline US domestic demand.
UPS' US Domestic Segment achieved a 10.2 per cent year-on-year increase in revenues to $14.4 billion, 'driven by a 13.4 per cent increase in revenue per piece from strong improvement in all products'.
The improvement in revenue per piece was driven by cargo mix, surcharges, and base rates. Ground and next-day air products performed particularly strongly.
However, the division's ADV slipped by 2.9 per cent compared with a year earlier. Business-to-consumer ADV was down 15.8 per cent while there was a 25.7 per cent improvement in business-to-business.
Operating profit for the segment increased by 10.9 per cent year on year to $1.6 billion.
Reports suggest the decline in ADV has led to investor concerns that the re-opening of brick-and-mortar retail will impact the Covid fuelled e-commerce boom.
Meanwhile, the company's International Segment achieved a 30 per cent year-on-year increase in revenues in the second quarter of 2020 to $4.8 billion, while operating profit also increased by 24.6 per cent to $1.2 billion.
ups said its International Segment results were 'led by [its operations in] Europe'.
The company's Supply Chain Solutions Segment recorded a 14.3 per cent increase in revenues in Q2 2021 to $4.2 billion, 'driven by strong demand in nearly all businesses'.
UPS said its ocean freight forwarding business more than doubled its operating profit. In healthcare, clinical trials, along with cell and gene solutions, delivered record top- and bottom-line results. And the sale of UPS Freight closed in April.
At $507 million, the segment's operating profit was 12.1 per cent higher than the second quarter of 2020. UPS' global healthcare revenues in Q2 2021 were up on last year by 19 per cent.
Carol Tome, chief executive at UPS, commented: 'Through our better not bigger framework, we are moving our world forward by delivering what matters.'
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The US express firm achieved revenues of US$23.4 billion, a 14.5 per cent increase on the same period of 2020. The company also noted a 47.3 per cent increase in operating profit to $3.3 billion.
But its average daily volume (ADV) was down by 0.8 per cent as a result of a decline US domestic demand.
UPS' US Domestic Segment achieved a 10.2 per cent year-on-year increase in revenues to $14.4 billion, 'driven by a 13.4 per cent increase in revenue per piece from strong improvement in all products'.
The improvement in revenue per piece was driven by cargo mix, surcharges, and base rates. Ground and next-day air products performed particularly strongly.
However, the division's ADV slipped by 2.9 per cent compared with a year earlier. Business-to-consumer ADV was down 15.8 per cent while there was a 25.7 per cent improvement in business-to-business.
Operating profit for the segment increased by 10.9 per cent year on year to $1.6 billion.
Reports suggest the decline in ADV has led to investor concerns that the re-opening of brick-and-mortar retail will impact the Covid fuelled e-commerce boom.
Meanwhile, the company's International Segment achieved a 30 per cent year-on-year increase in revenues in the second quarter of 2020 to $4.8 billion, while operating profit also increased by 24.6 per cent to $1.2 billion.
ups said its International Segment results were 'led by [its operations in] Europe'.
The company's Supply Chain Solutions Segment recorded a 14.3 per cent increase in revenues in Q2 2021 to $4.2 billion, 'driven by strong demand in nearly all businesses'.
UPS said its ocean freight forwarding business more than doubled its operating profit. In healthcare, clinical trials, along with cell and gene solutions, delivered record top- and bottom-line results. And the sale of UPS Freight closed in April.
At $507 million, the segment's operating profit was 12.1 per cent higher than the second quarter of 2020. UPS' global healthcare revenues in Q2 2021 were up on last year by 19 per cent.
Carol Tome, chief executive at UPS, commented: 'Through our better not bigger framework, we are moving our world forward by delivering what matters.'
SeaNews Turkey
