Profit growth came from international markets
Indeed, operating profit rose just 3% in the U.S. domestic package segment last quarter. The upside in UPS’s results instead came from outside the U.S.
The bottom line is that despite economic weakness in a number of countries, global trade is growing. Intra-Europe shipments rose 8.5% for UPS last quarter. The strong dollar and weak euro have hurt U.S. exports but are boosting import demand in the U.S. European luxury goods companies have also seen good growth in Asia, helped by the weak euro.