UPS releases second quarter 2022 financial report! Both revenue and profit exceeded expectations!

It is learned that according to foreign media reports, UPS, the world's largest express package giant, announced its second quarter 2022 financial results on July 26. The financial report shows that the company's revenue this quarter was US$24.766 billion, a year-on-year increase of 5.7%, exceeding the expected US$24.53 billion; net profit was US$2.849 billion, a year-on-year increase of 6.46%, also exceeding the expected US$2.781 billion.

By department, in the second quarter, UPS's U.S. division had revenue of $15.459 billion, a year-on-year increase of 7.3%. The division's operating profit was $1.829 billion, down from $1.567 billion in the same period last year.

The international division's revenue was $5.073 billion, up 5.3% year-on-year, and the division's operating profit was $1.193 billion, slightly higher than $1.184 billion in the same period last year.

The supply chain solutions division had revenue of $4.234 billion, up 0.7% year-on-year. The division's operating profit was $513 million, up from $507 million in the same period last year.

Overall, UPS's revenue performance in the second quarter was better than expected in a harsh environment of continued inflation, weak online shopping demand, and soaring rent and fuel costs.

“While the external environment continues to change, our strategic framework of being better, not bigger, has fundamentally improved nearly every aspect of our business, making us more nimble and stronger in delivering financial performance,” said UPS CEO Carol Tomé.

However, it is worth noting that in the second quarter, the freight volume of UPS's US division fell by 4% due to a decrease in the volume of packages from Amazon. In March of this year, Amazon temporarily canceled the small package delivery service of the UPS Partner Carrier Program. Carol Tome predicts that by the end of this year, the proportion of revenue from Amazon in UPS's total revenue will be less than 11%.

Editor ✎ Nicole/

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