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Updated:
7/22/2010 12:00:00 PM
UPS’ 2Q Income Jumps 71%
LTL Unit UPS Freight Returns to Profitability
UPS Inc. said Thursday its second-quarter profit jumped 71% on stronger international shipments, and the company boosted its full-year earnings outlook.
UPS earned $845 million, or 84 cents a share, up from $445 million, or 44 cents, a year ago. Revenue rose 12.7% to $12.2 billion.
Less-than-truckload unit UPS Freight returned to profitability in the quarter, with revenue up 10% from last year, driven by improved yield and higher weight per shipment.
“UPS Freight has returned to profit this quarter,” chief financial officer Kurt Kuehn said in a conference call Thursday morning. “Freight revenue per hundredweight increased 9%. This will be one of the industry's best results.”
The supply chain and freight unit’s operating profit rose 5.6% to $133 million, while revenue jumped 20.6% to $2.2 million.
In last year’s second-quarter, UPS had taken a $48 million after-tax charge that reduced its earnings by 5 cents per share.
UPS boosted its full-year adjusted earnings guidance to a range of $3.35 to $3.45 per share — an increase of 45% to 50% over last year.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
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