UPS profit up despite softer US market
CHICAGO (Reuters) - United Parcel Service Inc. (UPS.N) posted on Tuesday a better-than-expected quarterly profit, citing its international package, supply chain and freight business, which offset a slower U.S. small-package market.
The world's largest package delivery company reported second-quarter net income of $1.10 billion, or $1.04 a share, compared with $1.06 billion, or 97 cents a share, a year earlier.
Wall Street analysts, on average, had expected earnings per share of $1.03, according to Reuters Estimates.
The Atlanta-based company reported revenue for the quarter of $12.19 billion, up from $11.74 billion in the same quarter in 2006.
Analysts had expected revenue of $12.26 billion.
"Strong gains in our international package segment offset a lack of growth in the U.S. business," UPS Chief Executive Mike Eskew said in a statement. "We remain confident in the long-term growth prospects that the dynamic global marketplace offers UPS."
UPS said that in the third quarter it expects earnings per share in a range from 99 cents to $1.04.
Chief Financial Officer Scott Davis said in a statement that its U.S. small-package business more closely correlates to U.S. economic trends "and as a result we should see gradual volume growth in our U.S. package business."
(Reporting by Nick Carey)
