UPS's second quarter profit declined by almost half, coming in at $445 million, or 44 cents a share, compared to $873 million, or 85 cents a share, during the second quarter of 2008
. The company says the results were affected by "continuing weakness in global economic activity."

Revenue dropped 16.7 percent to $10.83 billion from $13 billion for the second quarter of 2008. The company's operating profit fell to $895 million in the second quarter, down from $1.45 billion in the same period of 2008. Consolidated volume was also down to 914 million packages, a 4.7 percent decrease.

"The economic environment continues to be difficult," said Kurt Kuehn, UPS's chief financial officer. "Declines in both our domestic and international businesses appear to be stabilizing but volumes will remain significantly below last year's levels."

Within the company's supply chain and freight sector, revenue declined 23.3 percent due to reduced fuel surcharges and lower volume, the company says. UPS Freight reported quarter-over-quarter improvements in LTL tonnage and shipments, according to a release.

"Although declines in economic indicators are less dramatic than earlier in the year, questions remain as to when business activity will begin to strengthen," Kuehn added. "The business environment in the third quarter should be similar to the second quarter."