UPS has reported good financial results for the last financial year, led by a strong performance in its international operations. For the full year of 2006, revenue rose almost 12%; operating profit increased 8%, and earnings per share climbed 11.2% to $3.86. The international business reported more than $1.7 billion in operating profit. The company also set a new record for package volume in 2006, delivering almost 4 billion packages - an average of 15.6 million per day.

In the US, ground package volume posted a healthy 3.6% increase in the last quarter. Next Day Air volume declined marginally and deferred volume was flat against strong prior-year results. Operating margin rose slightly to 15.9%. Management commented that it did an 'excellent job' of executing on its holiday peak season plan, with deliveries exceeding 22 million on two days.

Total international export volume grew 11.3% in the last quarter. Non-U.S. domestic package volume posted 4% growth as the company overlapped the effect of an acquisition. Operating margin climbed markedly from 19.4% to 21%.

The Supply Chain and Freight segment improved from the third quarter, reflecting the positive impact of cost control measures taken in the fourth quarter. UPS Freight's performance was impacted by the general softening in the Less-Than-Truckload (LTL) environment. Overall the segment reported a loss of $1m.

"We anticipate another good year in our global small package business despite a slowing U.S. economy," said Scott Davis, UPS's vice chairman and chief financial officer. "We also expect our Supply Chain and Freight segment to gain momentum as the year progresses."