UPS second quarter profit increases 12.1pc to US$122 million

US GLOBAL express delivery giant United Parcel Service (UPS) has reported non-US volume decline of 3.2 per cent in the second half of 2012 attributed to continued weakness in Asian exports and the debt crisis in Europe.

The Atlanta company's revenue increased 4.12 per cent to US$8.06 billion with its domestic package volume up 3.5 per cent boosting profit 12.1 per cent to US$122 million. Revenue per package was up 0.6 per cent year on year mainly led by low-weight residential deliveries.

Domestically, UPS Net Day Air traffic increased five per cent and air volume was up by 8.6 per cent. International volume dropped 4.1 per cent to $3 billion with double digit declines in its Asian shipments to Europe and US with revenue per package down by 2.4 per cent.

UPS' acquisition of TNT Express is expected to cost $6.6 billion in fourth quarter following anti-competition review by the European Commission. The purchase will help extend coverage in Europe, South America and Asia.