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For the three months ended in June, UPS said net income rose 2 percent to $1.12 billion, or $1.15 per share, compared with $1.09 billion, or $1.09 per share, a year earlier. Analysts expected $1.17 per share according to FactSet. Revenue for the Atlanta company rose 1.2 percent to $13.35 billion. In the U.S., revenue rose 4 percent from a year earlier, driven by a higher volume of packages. UPS said the increase was mostly due to a higher number of packages ordered from Internet retailers. Overseas, revenue fell 4 percent on lower exports from Asia and falling revenue per package, an indication of lower prices. Revenue in UPS' supply chain and freight business fell 1.7 percent. That segment includes both UPS' long haul trucking business and a unit that helps manufacturers streamline and make their businesses more efficient. A month ago, rival FedEx Corp. warned that slow global economic growth will crimp its earnings over the next 12 months. UPS said Tuesday that it's cutting some flights out of Asia and reducing the frequency of others over the next several quarters to counter slowing demand. That amounts to a 10 percent cut in capacity on Asia flights, on top of a previous 10 percent reduction. The company warned it would take additional actions, if necessary, to bolster its financial results. UPS does see one bright spot ahead: it believes fourth-quarter earnings will be buoyed by major technology product launches ahead of the busy holiday season. Apple Inc. is expected to release a new version of the iPhone in the fall.
[Associated
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