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UPS sticks with its outlook as 2Q earnings rise

By Samantha Bomkamp

Associated Press

Published: Tuesday, July 26 2011 6:35 a.m. MDT

In this July 21, 2011 photo, the image of a parked car is reflected on the side of a United Parcel Service truck in Little Rock, Ark. UPS said Tuesday, July 26, it still expects to grow earnings this year despite an "uneven economic environment." It's keeping its forecast for the year after reporting second-quarter earnings rose 26 percent.

Danny Johnston, Associated Press

Enlarge photo»

NEW YORK — UPS Inc. said Tuesday it still expects to grow earnings this year despite an "uneven economic environment," and it's keeping its forecast for the year after reporting second-quarter earnings rose 26 percent.

The world's largest package delivery company earned $1.06 billion or $1.07 per share, compared with year-ago earnings of $845 million, or 84 cents per share.

Revenue rose 8.1 percent to $13.19 billion.

Analysts polled by FactSet Research expected a profit of $1.12 per share on $13.26 billion in sales.

Sales in its core U.S. business rose 6.4 percent. International revenue climbed 13.3 percent led by continued strength in Asian and European exports. Revenue in UPS' freight and supply chain business, where it helps companies make their warehouses and overall operations more efficient, increased 7 percent. That was mostly due to higher prices in its trucking operation.

The company's operating profit in the supply chain and freight segment leaped 77 percent from a year ago. Its U.S. package unit operating profit rose by 29 percent, but it fell 4.6 percent in the international segment due to lower margins.

UPS shipped 957 million packages between April and June, or about 15 million per day.

United Parcel Service Inc., based in Atlanta, expects adjusted earnings this year of $4.15 to $4.40 per share. Analysts currently predict $4.34.

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