The Atlanta-based parcel giant saw its net income rise 7.3 percent year-over-year to $1.5 billion during the quarter.
UPS Inc. in the second quarter of 2018 grew its earnings 7.3 percent to $1.5 billion compared with the same 2017 period, according to the company’s most recent financial statements.
The Atlanta-based parcel giant and third-party logistics provider posted diluted earnings per share of $1.71 for the quarter compared with $1.58 per share in Q2 2017, as revenues jumped 9.6 percent to $17.5 billion, beating consensus analyst expectations by $130 million.
On an adjusted basis, EPS stood at $1.94 per share for the quarter, narrowly beating analyst expectations by $0.01 per share.
UPS attributed the higher earnings and revenues to a broad-based 3 percent increase in consolidated average daily package volume and a 4.6 percent increase in consolidated average revenue per piece.
“UPS is making great progress on our transformation initiatives to enhance profitable growth and improve operating leverage,” David Abney, UPS chairman and CEO, said of the results. “We are confident that our strategies will position the company to provide improved value for customers and shareowners.”
The company’s international division saw its operating profits climb 8.4 percent year-over-year to $618 million on revenues that surged 13.6 percent to $3.6 billion. Daily export shipments for the segment increased 9.5 percent compared with first-quarter 2017, led by continued volume growth in Europe and the United States, while import volumes ticked up 2 percent.
UPS said that on a currency neutral basis, the company’s international segment delivered its 14th-consecutive quarter of double-digit growth and the highest Q2 operating profit ever for the segment.
Operating profits in UPS’ supply chain and freight segment stood at $216 million, a 1.8 percent gain from the same quarter a year ago, as revenues jumped 15.6 percent year-over-year to $3.5 billion. Revenue growth was led by a 23 percent increase in forwarding revenues and a 13 percent uptick in UPS Freight revenues.
“The Supply Chain and Freight segment delivered another quarter of double-digit growth in revenue and adjusted operating profit,” said Abney. “Our targeted growth strategies and improved efficiencies produced the segment’s best profit growth in its history.”
The company’s U.S. domestic unit, on the other hand, reported a 25.2 percent decrease in second-quarter operating profits to $939 million, due in part to impacts from planned increases in pension expenses and costs associated with ongoing network projects. Revenues for the segment grew 6.3 percent to $10.4 billion compared with Q2 2017, as average daily package volumes grew 2.6 percent and higher base rates and fuel surcharges contributed to a 3.6 percent increase in revenue per piece.
Through the first six months of 2018, UPS has grown its net income 11 percent to $2.8 billion ($3.25 per diluted share) compared with the first half of 2017 as revenues rose 10 percent to $34.6 billion.
Looking ahead to the remainder of the year, UPS reiterated its projections for full-year 2018 adjusted diluted earnings per share in a range of $7.03 per share to $7.37 per share and capital expenditures of between $6.5 billion and $7 billion.
“UPS is focused on executing our strategic imperatives for improved efficiency and high-quality growth,” said UPS Chief Financial Officer Richard Peretz. “We remain confident in our ability to achieve our full-year adjusted earnings per share target.”
UPS delivers higher earnings in Q2
