United Parcel Service, Inc. (NYSE:UPS) announced its second quarter earnings on Friday. With the increasing revenue, UPS reported 3.2% increase in profit in the second quarter.
According to the statement, earnings of UPS in the second quarter was $1.27 billion, or $1.43 per share, increased from $1.23 billion, or $1.35 per share in the same period last year. The earnings results met Thomson Reuters estimates of $1.43 per share, which were helped by consumers buying more goods online.
Overall revenue rose 3.8% year-over-year and reached $14.629 billion from $14.095 billion the same period last year, which meet analyst expectation of $14.625 billion. Revenue in U.S. package segment increased 2.4% and revenue in international package segment rose 1.1%. Due to the rise of productivity and lowered cost per unit, domestic revenue reached $9 billion, increased 2.4% year-over-year. In addition, the average daily package volume increased 2.5%, according to the announcement.
"UPS produced solid second quarter results, despite the continued uncertainty in the macro economy," Richard Peretz, CFO of the company, said in the statement. "The technology and productivity investments in our integrated network are delivering strong results."
Based on the earnings statement, UPS reiterated its full year guidance for earnings per share. The company expected that its diluted earnings per share to be between $5.70 and $5.90. The company also disclosed that it is challenging a benefit cut plan by Central States Pension Fund. If UPS didn’t succeed, the company would be required to record a charge of $3.2 billon to $3.8 billion in the second half of the year, Richard said.
UPS shares dropped 0.59% to $108.09 per share in the afternoon trading hours on Friday.