UPS Q2 revenue up 6% on across-the-board show

NYSE-listed UPS reported a 6 percent increase in Q22022 consolidated revenue at $24.8 billion on 12 percent increase in revenue per piece from domestic operations and 15 percent increase in revenue per piece from the international segment.

"Consolidated operating profit was $3.5 billion, up 8.5 percent compared to the second quarter of 2021, and up 9.3 percent on an adjusted basis," says an official statement. Adjusted diluted earnings per share of $3.29 was 7.5 percent above the same period in 2021.

"I want to thank UPSers around the world for delivering outstanding service to our customers," says Carol Tomé, CEO, UPS. "While the external environment is ever changing, our better not bigger strategic framework has fundamentally improved nearly every aspect of our business, enabling greater agility and strong financial performance."

Healthcare business delivered record results, led by complex customers in cold chain, clinical trials and labs, Tomé said in the post-results presentation. Healthcare facilities were expanded with UPS Premier now in 33 countries.

Acquisition of Delivery Solutions expanded the digital commerce portfolio, Tomé added.

"Increasing agility and productivity of the network, Smart Package Smart Facility on track to deploy in 100 buildings before peak, and launched "Total Service Plan" across the U.S. network in July," Tomé said.

Domestic revenue increased over 7 percent to $15.5 billion with an operating profit of $1.8 billion. U.S. domestic average daily volume declined 4 percent, "and more than half of the decline was from actions we took to optimise volume in our network," Chief Financial Officer Brian Newman said during the presentation.

International segment revenue was up over 5 percent to $5 billion and operating profit came in at $1.2 billion with 790 basis points of the per piece revenue increase driven by base pricing, product mix and revenue quality, Newman added.

Supply chain solutions reported revenue of $4.2 billion and operating profit of $513 million.

UPS has reaffirmed its 2022 outlook of consolidated revenue of about $102 billion, capital expenditure of approximately $5.5 billion and dividend payments of about $5.2 billion.

UPS is also increasing its share repurchase target to $3 billion for 2022 while focusing on revenue quality and continued productivity improvement, Newman said.