Rising worldwide demand for small packages boosts profit.
July 25 2006: 8:43 AM EDT
CHICAGO (Reuters) -- United Parcel Service Inc., the world's largest package delivery company, said Tuesday that quarterly net profit rose, citing rising demand for small packages worldwide, but results missed market expectations.
UPS also announced an earnings outlook for the third quarter that came in below analyst forecasts.
The Atlanta-based company reported second-quarter net income of $1.06 billion, or 97 cents a share, compared with $986 million, or 88 cents, a year earlier.
Analysts had expected earnings per share of $1, according to Reuters Estimates.
UPS reported revenue for the quarter of $11.74 billion, compared with $10.2 billion a year earlier. Analysts, on average, expected $11.6 billion.
The company said in a statement that it expected earnings per share for the third quarter of 87 to 91 cents.
Analysts have forecast earnings of 97 cents for the quarter.
"Our global small package volume growth in the second quarter was robust, resulting in a solid earnings gain," UPS Chief Executive Officer Mike Eskew said in a statement. "The global small package market continues to expand and we are seeing significant opportunities for UPS."