July 24, 2012, 11:33 AM

E-commerce drives package volume at UPS

UPS attributes a 3.5% rise in Q2 package deliveries largely to online retailers.

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Thanks mostly to online retailers shipping packages to consumers, United Parcel Service Inc. reported a 3.5% year-over-year rise in its U.S. average daily package volume in the second quarter.

“The majority of the improvement was driven by large e-commerce customers shipping low-weight residential packages,” UPS said today.

For the second quarter ended June 30, UPS reported:

 

 

● U.S. average daily domestic package volume increased about 3.5% to 13.08 million packages from 12.63 million in the year-earlier period. This included increases of 3.0% in ground package volume, 5.0% in next-day air and 8.6% in deferred 2-day or 3-day air.

● International average daily package volume declined year over year about 1.6% to approximately 2.28 million packages from 2.32 million.

● Total average daily package volume rose 2.7%.

● Revenue from U.S. domestic packages increased 4.1% year over year to $8.06 billion from $7.74 billion.

● Revenue from international packages declined about 4.0% to roughly $3.01 billion from $3.14 billion a year earlier.

● Total revenue including freight and supply chain services increased 1.2% to $13.35 billion from $13.19 billion.

● Net income increased about 2.2% year over year to approximately $1.12 billion from $1.09 billion.

For the six months ended June 30, UPS reported:

● U.S. average daily package volume rose 4.0% year over year to approximately 13.16 million packages from 12.65 million.

● International average daily package volume inched up roughly 0.6% year over year to approximately 2.32 million packages from 2.30 million.

● Total average daily package volume rose 3.5% to approximately 15.47 million packages from 14.95 million.

● Revenue from U.S. domestic packages increased 3.6% year over year to about $3.17 billion from $3.06 billion.

● Revenue from international packages fell 1.0% to approximately $5.98 billion from $6.04 billion.

● Total revenue including freight and supply chain services rose 2.8% to $26.49 billion from $25.77 billion.

● Net income rose about 3.9% to $2.09 billion from $2.01 billion.

 

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