Global parcel supply service UPS says its European and Asian arms performed strongly in the second quarter, overcoming a "challenging" small parcels market in the US. Its consolidated results show an increase in turnover to $12.2bn for the three months ending 30 June, compared with $11.7bn for the same period in 2006. Operating profit jumped to $1.77bn from $1.7bn, resulting in an operating margin increase of 0.1% at 14.5%.
However, its US business's operating profit dropped to $1.19bn from $1.23bn in 2006 and its operating margin fell almost 1% to 15.7%. But its European arm posted double-digit export volume growth, reflecting "strong cross-border growth".
UPS CEO Mike Eskew says: "Strong gains in our international package segment offset a lack of growth in the US business. We're also executing well in our supply chain and freight business and are pleased with the profit improvements in this segment. We remain confident in the long-term growth prospects that the dynamic global marketplace offers UPS."
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