UPS profit increases as e-commerce fuels growth

Sandy Springs-based UPS said it is handling more shipments due to e-commerce, seeing more business in Europe and looking toward growth in China.

The company reported a second-quarter profit of nearly $1.4 billion, up 9.1 percent year-over-year.

UPS said growth in e-commerce is driving increased revenue in its U.S. domestic segment. But closures of brick-and-mortar retail stores are slowing growth in business-to-business shipments.

Overall, the company’s revenue increased 7.7 percent to nearly $15.8 billion, from $14.6 billion a year ago.

Europe was the fastest-growing segment for UPS in the second quarter. Competitor FedEx's TNT Express unit in Europe suffered a cyber-attack in late June that disrupted its operations.

Looking to Asia, CEO David Abney said the outlook for China has improved. UPS earlier this year struck a deal for a joint venture with Chinese logistics company SF Holding.

Abney said during an investor conference call that UPS is developing cross-border shipment options for businesses that want to sell to Chinese consumers.

“China represents a great market opportunity for U.S. businesses,” he said.

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