UPS’s Earnings Win, Powered By eCommerce

UPS ended the week and the month on an up note with a quarterly earnings report that indicated every relevant metric.

Consumer deliveries, riding on the eCommerce wave, grew the fastest by far, outstripping business deliveries fivefold. Package volume on the whole was up 2.5 percent to ~14 million during Q2 2016 when compared to the same time in 2015. Ground volume was up 2.4 percent, and Next Day Air picked up 5.6 percent.

Revenue per package however, did not grow; according to UPS that figure was, on average, flat.

Globally, UPS also made a show of strength, with international deliveries up 4.3 percent to 2.758 million.

“We are investing to expand our global network, implementing new technologies and capturing new revenue in high-growth markets,” David Abney, UPS chairman and CEO said Friday. ”These strategic investments in our diversified business again this quarter generated strong value for our customers and shareowners.”

To meet the challenges of growing demand – and to reduce deliveries that need to be repeated due to carriers and consumers missing each other, UPS has recently doubled down on its Access Point locker program that allows customers to flexibly pick up their packages at their leisure at designated UPS locker spots.

As for other notable figures out of UPS most recent report:

Total revenue rose 3.8 percent to $14.629 billion, and U.S. domestic revenue increased 2.4 percent to $9.015 billion. Net income increased 3.2 percent to $1.27 billion from $1.23 billion a year ago.

For the year so far total revenue is up 3.5 percent  and U.S. domestic revenue increased 2.7 percent to $18.09 billion.


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