UPS Releases 2Q 2020 Earnings

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I'm a Robot
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  • Consolidated Average Daily Volume Surged to Record 20.9% Growth
  • 2Q20 Diluted EPS of $2.03, Up 4.6%; Adjusted* Diluted EPS up 8.7% to $2.13
  • YTD Cash from Operations of $5.9B; Adjusted Free Cash Flow of $3.9B
UPS today announced second-quarter 2020 consolidated revenue increased to $20.5 billion, a 13.4% increase from the second quarter of 2019. Net income was $1.8 billion for the quarter; adjusted net income was $1.9 billion, 8.8% above the same period in 2019. Operating profit was $2.2 billion, and adjusted operating profit was $2.3 billion, up 7.4% compared to last year’s second quarter.

Diluted earnings per share was $2.03 and adjusted diluted earnings per share was $2.13, up 8.7% from the same period last year. GAAP results included a pre-tax transformation charge of $112 million, equivalent to $0.10 per share. In the prior year period, GAAP results included a pre-tax charge for transformation costs of $21 million, equivalent to $0.02 per share.

“Our results were better than we expected, driven in part by the changes in demand that emerged from the pandemic, including a surge in residential volume, COVID-19 related healthcare shipments and strong outbound demand from Asia,” said Carol Tomé, UPS chief executive officer. “UPSers are keeping the world moving during this time of need and I want to thank our team for their hard work and outstanding efforts to serve our customers, our communities and each other.”

U.S. Domestic Segment


2Q 2020
Adjusted
2Q 2020

2Q 2019
Adjusted
2Q 2019
Revenue
$13,074 M​
$11,150 M​
Operating profit
$1,182 M​
$ 1,215 M​
$1,208 M​
$1,226 M​

  • Average daily volume increased 22.8%, reaching 21.1 million packages per day.
  • Demand for residential delivery surged in the quarter, driving B2C shipment growth up 65.2%.
  • Operating margin was 9.0%; adjusted operating margin was 9.3%.
International Segment


2Q 2020
Adjusted
2Q 2020

2Q 2019
Adjusted
2Q 2019
Revenue
$3,705 M​
$3,505 M​
Operating profit
$771 M​
$ 842 M​
$663 M​
$665 M​

  • Average daily volume grew 9.8%, driven by strong outbound demand from Asia and an increase in cross-border e-commerce in Europe.
  • Operating margin was 20.8%; adjusted operating margin was 22.7%.
Supply Chain and Freight Segment


2Q 2020
Adjusted
2Q 2020

2Q 2019
Adjusted
2Q 2019
Revenue
$3,680 M​
$3,393 M​
Operating profit
$259 M​
$ 267 M​
$272 M​
$273 M​

  • Revenue increased 8.5%, driven by elevated air freight forwarding demand out of Asia, offset in part by weaker demand early in the quarter in the LTL and truckload brokerage units.
  • Operating margin was 7.0%; adjusted operating margin was 7.3%.
Outlook

UPS is not providing revenue and diluted earnings per share guidance due to the uncertainty around the timing and pace of the economic recovery. The company is unable to predict the extent of the business impact or the duration of the coronavirus pandemic, or reasonably estimate its operating performance in future quarters.

“Using the scale and flexibility of our global integrated network, we successfully managed operational challenges throughout the quarter. Moving forward we are focusing on efficiency and revenue quality to improve U.S. operating margins longer term,” said Brian Newman, UPS chief financial officer. “Our liquidity and cash position remain strong, allowing us to invest in enabling capabilities through this time of unprecedented business disruption.”

* “Adjusted” amounts are non-GAAP financial measures. See the appendix to this release for a discussion of non-GAAP financial measures, including a reconciliation to the most closely correlated GAAP measure.

Conference Call Information

UPS CEO Carol Tomé and CFO Brian Newman will discuss second-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, July 30, 2020. That call will be open to others through a live Webcast. To access the call, go to www.investors.ups.com and click on “Earnings Webcast.” Additional financial information is included in the detailed financial schedules being posted on www.investors.ups.com under “Financials” and as filed with the SEC as an exhibit to our Current Report on Form 8-K.
 

661477

Member
We are in negotiations here in Canada and the company is crying poor! The top rate in Canada is $31.79/hr Canadian which is the equivalent of around $24.45 USD, we work just as hard as our American brothers and sisters! At least give us in Canadian dollars what our US brothers and sisters get!
 
We are in negotiations here in Canada and the company is crying poor! The top rate in Canada is $31.79/hr Canadian which is the equivalent of around $24.45 USD, we work just as hard as our American brothers and sisters! At least give us in Canadian dollars what our US brothers and sisters get!
Canada voted Hoffa back in. You'll get nothing and like it.
 

rod

#1 on Upstates "list"
We are in negotiations here in Canada and the company is crying poor! The top rate in Canada is $31.79/hr Canadian which is the equivalent of around $24.45 USD, we work just as hard as our American brothers and sisters! At least give us in Canadian dollars what our US brothers and sisters get!
I've never seen a Canadian work as hard as an American--- except to finish a jug of rye whiskey.
 
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