UPS reported second quarter net income of $611 million, down from second quarter 2001’s $630 million. The Atlanta-based shipper’s revenue rose from $7.49 billion to $7.68 billion during the same period. The quarter ended June 30.
Domestic shipping volume was off during the quarter, and the decline accelerated as it progressed, according to the company. UPS attributed the falloff to the weak economy and customers’ using alternative shippers as contract negotiations with the International Brotherhood of Teamsters went unresolved.
Within the domestic segment, revenue fell from $5.98 billion a year ago to $5.91 billion, and operating profit dropped from $966 million to $899 million. Total package volume for the quarter was off by 2.6%, with June’s volume down 4%.
The company’s international segment saw its operating profit more than double, to $62 million from $24 million, as its revenue rose 9% to $1.14 billion. Part of the gain was due to the company’s opening an intra-Asian air hub in the Philippines, which improved service within Asia and Europe.
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