Company-wide revenue rose slightly when compared to the same period in 2011, and operating profit rose from an adjusted figure of $1.71 billion in the second quarter last year to $1.79 billion. Operating margin rose nearly half a percent. Still, these numbers were lower than expected, according to reports.
International airfreight demand was the culprit blamed for a 1.6-percent, year-over-year, revenue decline in the company’s supply chain and freight business. This was, in part, due to excess capacity in Asia, officials said in a press release. Operating profit also declined from $505 million in the second quarter of 2011 to $454 million. Average volume per day for international packages stayed flat at 2.3 million.
Domestic numbers were much better, with UPS’ domestic package operation showing a 1-percent, year-over-year, increase in adjusted operating margin. Domestic package revenue rose 4.1 percent, year-over-year, and volume experienced a 3.5-percent, year-over-year, gain. Volume for Next Day Air products grew by 5 percent, with deferred air increasing by 8.6 percent.
“Increasing uncertainty in the United States, continuing weakness in Asia exports and the debt crisis in Europe are impacting projections of economic expansion,” UPS CEO Scott Davis said in a statement. “We are making the adjustments necessary to respond to today’s challenging conditions.”
The company reduced its diluted earnings per share outlook by as much as six percent lower than predictions officials made last quarter.
Company-wide revenue rose slightly when compared to the same period in 2011, and operating profit rose from an adjusted figure of $1.71 billion in the second quarter last year to $1.79 billion. Operating margin rose nearly half a percent. Still, these numbers were lower than expected, according to reports.
International airfreight demand was the culprit blamed for a 1.6-percent, year-over-year, revenue decline in the company’s supply chain and freight business. This was, in part, due to excess capacity in Asia, officials said in a press release. Operating profit also declined from $505 million in the second quarter of 2011 to $454 million. Average volume per day for international packages stayed flat at 2.3 million.
Domestic numbers were much better, with UPS’ domestic package operation showing a 1-percent, year-over-year, increase in adjusted operating margin. Domestic package revenue rose 4.1 percent, year-over-year, and volume experienced a 3.5-percent, year-over-year, gain. Volume for Next Day Air products grew by 5 percent, with deferred air increasing by 8.6 percent.
“Increasing uncertainty in the United States, continuing weakness in Asia exports and the debt crisis in Europe are impacting projections of economic expansion,” UPS CEO Scott Davis said in a statement. “We are making the adjustments necessary to respond to today’s challenging conditions.”
The company reduced its diluted earnings per share outlook by as much as six percent lower than predictions officials made last quarter.