As Sandy Springs-based UPS reported a $1.27 billion profit for the second quarter of this year, its CEO weighed in on the controversial Trans-Pacific Partnership trade deal.
“We are mindful of the current political commentary on trade,” said UPS chief executive David Abney during an investor conference call Friday on the company’s quarterly financial results. “Trade legislation to accelerate economic expansion like the Trans-Pacific Partnership is vital to the health of the U.S. economy. We encourage our political leaders to support and pass pending trade legislation.”
TPP, as the trade deal is known, has been criticized by candidates from both parties at their political conventions in the last two weeks. President Barack Obama pushed for the deal between 12 countries to eliminate trade barriers and tariffs, but the agreement has not yet been ratified by Congress. Opponents worry the deal would decrease American jobs.
UPS has been a long-time advocate for free trade and a supporter of TPP.
“Historically, following ratification of trade deals, we have seen about a 20 percent increase in U.S. exports to the countries involved,” Abney said. “UPS is a steadfast proponent of trade and supports agreements that minimize friction in the global supply chain.”
In its announcement on the company’s second-quarter profit, UPS said its results were solid “despite continued uncertainty in the macro economy.”
The shipping giant’s profit was up 3.2 percent from the same period a year earlier, when it earned $1.23 billion.
UPS said lower fuel surcharge rates reduced its revenue per package growth.
The company had $14.6 billion in revenue in the quarter, up 3.8 percent from a year ago.
Its quarterly operating expenses were $12.6 billion, also up 3.8 percent.
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