These profits are made on fewer but higher revenue pkgs. Tax cuts from 2017, the elimination/replacing of management pensions, outsourcing HR, BD, safety and payroll all contribute to less cost of running the business. The American Rescue Bill relieved UPS of billions of dollars set aside for Central States Pension support also. Investments in robot unloading systems, tractor/trailer leasing and rail expansion will see it's day and savings.
Didn't they put an extra billion dollars in 2020 because of the market downturn and they wanted to capitalize on it?Take at look at the difference between the 2020 and the 2021 4th quarters on their pension contributions... 2020...3.1 billion/2021 ... 65 million...
That is one of the reasons they nailed it... their pension trusts investment returns had to be over 20 % in 2021...a better return equals less contributions to maintain those plans.
Next year it will be more profitable when they eliminate the management’s pension contributions if the economy continues to grow.
"UPS delivers $3.1 billion to pension plans in 2020 | Pensions & Investments" UPS delivers $3.1 billion to pension plans in 2020Probably right.. I remember at one time they put in 5 billion into their pension trusts..