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UPS quarterly profit up 10pc to US$1.23 billion despite 1.2pc fewer sales
ATLANTA's United Parcel Service (UPS) has posted a 10 per cent second quarter net profit increase to US$1.23 billion, drawn on revenues of 14.1 billion, which fell 1.2 per cent.
"The continued strength of the dollar and this impending rate hike by the Fed appears to be holding back US growth," said CEO David Abney, adding that he was "cautious" about the US economy.
UPS said lower fuel surcharges hurt company growth. When reporting quarterly results in June, Memphis-based FedEx said lower fuel surcharges had cut into its revenue too.
In 2014, UPS overspent on package volumes that failed to materialise after underestimating demand in 2013, when hundreds of thousands of packages were stranded on Christmas Eve.
"UPS must still focus on overcoming the previous year's problems in peak shipping to hit their targets for the year," said Cowen & Co analyst Helane Becker.
Volume growth and price hikes increased profit in its international package business. The strong dollar drove down revenue for its higher-margin international package business by six per cent, reported Reuters while revenue in the US domestic package market, by far its largest business, rose 1.6 per cent.
"The continued strength of the dollar and this impending rate hike by the Fed appears to be holding back US growth," said CEO David Abney, adding that he was "cautious" about the US economy.
UPS said lower fuel surcharges hurt company growth. When reporting quarterly results in June, Memphis-based FedEx said lower fuel surcharges had cut into its revenue too.
In 2014, UPS overspent on package volumes that failed to materialise after underestimating demand in 2013, when hundreds of thousands of packages were stranded on Christmas Eve.
"UPS must still focus on overcoming the previous year's problems in peak shipping to hit their targets for the year," said Cowen & Co analyst Helane Becker.
Volume growth and price hikes increased profit in its international package business. The strong dollar drove down revenue for its higher-margin international package business by six per cent, reported Reuters while revenue in the US domestic package market, by far its largest business, rose 1.6 per cent.
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