United Parcel Service (UPS) has reported a better-than-expected quarterly profit as the largest US parcel carrier focused on more lucrative shipments to offset cooling e-commerce delivery growth.
As domestic deliveries started to recede, delivery firms such as UPS and FedEx pivoted to higher-paying small businesses and enterprise customers to drive volumes and earnings.
Since taking charge of UPS in June 2020, Chief Executive Officer Carol Tome has pushed the company to adopt a "better, not bigger" strategy, which prioritises lucrative deliveries over volume.
E-commerce shipments fell from pandemic highs as Covid safety protocols lifted and shoppers reprioritised spending due to higher rent, food and fuel costs.
The company reaffirmed its full-year outlook.
Atlanta-based UPS posted second-quarter adjusted earnings of $3.29 per share, ahead of analysts' estimate of $3.16, according to Refinitiv data.
Revenue rose 5.7% to $24.76 billion, beating estimates of $24.63 billion.
