US business drives UPS revenue up by 7.7%
UPS enjoyed another bumper quarter with business in the United States the main driver behind a 7.7% increase in revenue.
The delivery and logistics giant recorded revenues of $15.75bn for the three months to the end of June compared to $14.63bn for the same period in 2016.
Close to $10bn of that figure was down to the success of its domestic business stateside, where there was an 8.1% increase in revenue.
A drive in ecommerce sales was behind the $780m jump, with more and more customers in the US electing to do their shopping online.
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Operating profit in the US improved by more than 13%, with operating margin expanding 60 basis points to 14.3%. Volume of shipping and better prices were the main factors behind the gain.
“UPS generated great year-over-year revenue gains in the second quarter and we produced solid earnings per share growth, consistent with our plans,” said David Abney, UPS chairman and CEO.
“We continue to invest in our network to expand our capabilities, our market presence and our global reach.”
Shares in the company did tumble upon the news, however, after UPS dampened expectations for the third and fourth quarters of 2017 by warning that growth is likely to slow.