UPS Friday reported a mixed performance in its second quarter, with continued growth in the international segment partially offsetting declines in the U.S. domestic package business.

For the quarter ended June 30, revenue totaled $7.68 billion, up 2.5% from the $7.49 billion for the prior year. Consolidated operating profit declined 1.2% to $1.03 billion. Net income declined to $611 million compared to the prior year's $630 million.
During the quarter, the company's U.S. domestic package business experienced declines in package volume that accelerated as the quarter ended. The company says the declines are attributable both to slow economic conditions and customers diverting package volume to competitors due to unresolved contract negotiations with the Teamsters union, whose contract expires July 31.
Within the U.S. domestic segment, revenue totaled $5.91 billion, down 1.2% compared to $5.98 billion for the prior year. Operating profit fell 6.9% to $899 million from the $966 million reported in 2001. Total U.S. domestic package volume dropped 2.6% for the quarter, with volume declining 4% in June.
In the international segment, operating profit more than doubled to $62 million from $24 million on a 9% increase in revenue to $1.14 billion.