Efficiency only gets you so far.
EPS was up 7.5% but revenue advanced only 1.2%, under expectations. More to the point if UPS is taking share (and I suspect they are) then this says quite clearly that actual volume (as a whole, not just for UPS), especially when you look at the picture ex-Olympics (which have spiked volumes) total freight volume is at best flat. UPS reported domestic package volume was up 3.5% and revenue increased 4.1%.
International revenue, on the other hand, was down; operating profit and margin were both off with double-digit declines in exports from Asia to both the US and Europe. In other words international trade from Asia is in serious trouble, despite claims from China that they are “still growing.” (Never trust Chinese published numbers — if you think our government lies like a bearskin rug you’ll marvel at the whoppers that come out of their “statistics” process!)
Here it comes.