UPS 2Q revenue improves on strength in US, abroad


              FILE - In this June 20, 2014, file photo, a United Parcel Service driver starts his truck after making a delivery in Cumming, Ga. UPS reports financial results on Friday, July 29, 2016. (AP Photo/David Goldman, File)
FILE - In this June 20, 2014, file photo, a United Parcel Service driver starts his truck after making a delivery in Cumming, Ga. UPS reports financial results on Friday, July 29, 2016. (AP Photo/David Goldman, File)

ATLANTA (AP) - UPS's second-quarter revenue improved on solid performances from its domestic and international package divisions.

The package and delivery service's revenue increased to $14.63 billion from $14.1 billion. Analysts surveyed by Zacks Investment Research expected $14.6 billion in revenue.

Revenue for the U.S. domestic package unit climbed 4 percent, with average daily package volume up 2.5 percent. For the international package division, revenue rose 1.1 percent and daily export packages climbed 3.9 percent.

The package and delivery industry is a competitive field, with UPS doing battle with rivals such as FedEx and the U.S. Postal Service. There is also concern that Amazon Inc. may enter the fray. Amazon has leased 40 cargo planes from Boeing and Atlas Air to create an air cargo network. The company says it doesn't plan to build its own delivery service and is just looking to work more closely with package-delivery services like the U.S. Postal Service, FedEx and UPS, but the cargo fleet and drone experimentation are clear steps in taking more control in the delivery process.

For the three months ended June 30, United Parcel Service Inc. earned $1.27 billion, or $1.43 per share. That compares with $1.23 billion, or $1.35 per share, a year earlier.

The results met the expectations of analysts polled by Zacks.

UPS maintained its full-year forecast for earnings in a range of $5.70 to $5.90 per share. Analysts polled by FactSet predict $5.80 per share.

Its shares slipped 2 percent before the market open on Friday.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on UPS at http://www.zacks.com/ap/UPS

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Keywords: United Parcel Service, Earnings Report, Priority Earnings

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