Global express and logistics provider UPS has reported what it calls a 'solid' set of results for the second quarter. Revenues rose to $12.2 billion from $11.7bn in the corresponding quarter last year. Management stated that a strong performance by the international package segment and encouraging trends in supply chain and freight overcame a challenging U.S. small package market.

For the three months ended June 30, 2007, net income rose 4.1% to $1.1 billion. Operating margin increased to 14.5% with improvements in both the international package and supply chain and freight segments.

Ground volume was flat during the quarter, reflecting declining growth rates in both industrial production and business-to-consumer shipments. Next Day Air volume increased 1.6% to partially offset a 4% decline in deferred air volume. Total U.S. revenue per piece remained firm, up 1.7%, with revenue per piece on ground volume rising 3%.

International export revenues jumped 14% on strong volume growth. Europe posted a double-digit export volume gain, reflecting strong cross-border growth. Asia export volume jumped 25% with particularly strong growth out of China. For the segment, operating profit increased 14.7% and margins expanded 50 basis points to 19%.

UPS Freight less-than-truckload (LTL) revenue climbed 10.5% on a 12% increase in shipments. Management stated that the forwarding and logistics business also continued to benefit from the performance improvement initiatives launched in the second half of 2006.

"The company's total performance reflects the benefits of our truly global network," said Mike Eskew, UPS's chairman and CEO. "Strong gains in our international package segment offset a lack of growth in the U.S. business. We're also executing well in our supply chain and freight business and are pleased with the profit improvements in this segment. We remain confident in the long-term growth prospects that the dynamic global marketplace offers UPS."