(The Associated Press circulated the following article on April 27.)
ATLANTA — As UPS continues to expand internationally, the company is concerned about transportation infrastructure around the world and in the United States, a top executive at the world’s largest shipping carrier said Thursday.
During a conference that was carried over the Internet, David Abney, president of the Atlanta-based company’s international division, said he would like to see rail and other improvements in the U.S., India and in some respects in China.
”I do think it affects the competitiveness of the United States,” Abney said. ”We’re also concerned about infrastructure in other parts of the world. India certainly comes to mind. China has made some tremendous gains, but there are some backlogs there that need to be addressed.”
Even so, UPS has been able to increase its global operations through its use of technology, and it believes it will continue to see strong profit margins internationally, Abney said, adding that the high tech and medical industries are big drivers of that growth.
”If we have a secret weapon in our strategy playbook, it’s technology,” he said.
Citing the Internet and an electronic shipping system, Abney said the use of technology leads to ”far less churn and significant revenue growth and helping our business customers achieve their plans.”
Asked about growth in China specifically, Abney said UPS has the capability to deliver to every destination in the country either through use of its own vehicles or outside agents for remote locations. He also said the company has capitalized on growth opportunities in Japan.
Earlier this month, UPS, also known as United Parcel Service, reported first-quarter earnings of $975 million, compared with a profit of $882 million for the same period a year ago.
Revenue from the company’s U.S. package segment rose 9.6 percent to $7.46 billion, while international package revenue climbed 17.3 percent to $2.16 billion.
UPS has projected second-quarter profit in a range of 97 cents
to $1.01 per share, compared with earnings of 88 cents a year ago.