UPS (NYSE:UPS) today announced fourth-quarter 2015 adjusted diluted
earnings per share of $1.57, a 26% increase over adjusted
fourth-quarter 2014 results. All three business segments
expanded operating margins and generated double-digit operating
profit growth.
For the full year, UPS achieved adjusted diluted earnings per
share of $5.43, an increase of 14% over 2014 adjusted results.
Included in these results were several discrete tax credits that
increased the earnings per share by about $0.07 for the quarter and
a total of $0.10 for 2015.
Total revenue in the fourth quarter rose slightly, to $16.1
billion. Revenue growth was slowed by currency translations
and lower fuel surcharges. On a currency-neutral basis,
revenue was up 2.4% compared to the same period last year.
Revenue management initiatives continue to improve base rates
across all segments.
“Our flexible integrated network, close collaboration with
customers and the extraordinary efforts of UPSers enabled us to
achieve great service and record financial performance this
quarter,” said David Abney, UPS chief executive officer.
“This year’s results build on our multi-year strategy to deliver
improved shareowner value.”
On a reported basis, diluted earnings per share for 2015 were
$5.35 compared to $3.28 in 2014. Fourth-quarter GAAP diluted
earnings per share were $1.48 compared to the fourth-quarter 2014
diluted earnings per share of $0.49. Fourth quarter 2015
results include a $79 million non-cash, after-tax, mark-to-market
pension charge to recognize lower-than-planned asset returns that
were somewhat offset by a higher discount rate. In the
prior-year period, the company reported non-cash, after-tax charges
of $692 million related to pension mark-to-market charges and the
transfer of certain healthcare liabilities.
UPS delivered 1.3 billion packages during the fourth quarter, an
increase of 1.8% over the same period last year. For calendar
year 2015, the company delivered 4.7 billion packages, up 2.1% over
2014. During peak season 2015, UPS delivered 612 million
packages.
Cash Flow
For the year ended Dec. 31, UPS generated $5.0 billion in free
cash flow. The company paid dividends of $2.5 billion, an
increase of 9.0% per share over the prior year. UPS also
repurchased 27 million shares for approximately $2.7 billion.
U.S. Domestic Package
U.S. Domestic revenue increased 2.6%, to $10.3 billion.
Lower fuel surcharge rates reduced revenue growth by about 250
basis points. Revenue per package increased slightly to
$8.89. Base rates driven by company actions remain strong
while changes in fuel surcharges and customer mix lowered
revenue-per-package growth.
Strong demand from ecommerce shippers contributed to a 2.4%
increase in average daily shipments. Deferred Air products
soared 15% and Next Day Air was up 10% over the same period last
year. UPS completed deliveries to more than 1.9 million new
addresses during December, demonstrating the growing influence of
online retail.
Adjusted operating profit increased $209 million, or more than
18% over the fourth-quarter 2014 adjusted results. Operating
margin expanded 170 basis points, to 13.1%, on an adjusted
basis. The company’s focus on revenue quality, combined with
better network performance, resulted in improved operating leverage
this quarter.
On a reported basis, operating profit increased $840 million, or
189% with operating margin of 12.5%, as a result of the
mark-to-market pension entries mentioned above.
International
Package
International adjusted operating profit was up 16%, to $624
million, in the fourth quarter, led by strong performance in
Europe. Disciplined pricing, favorable customer and product
mix, combined with improved operational performance, drove
increased profitability. For the first time, the
International segment surpassed $2 billion in annual adjusted
operating profit.
UPS’s focus on more-profitable accounts led to improved base
rates across all regions. On a currency-neutral basis,
revenue per package was down 0.9% compared to the fourth quarter of
2014. Lower fuel surcharge masked revenue per package growth
by approximately 350 basis points and offset strong growth in base
rates.
Export shipments increased slightly, led by
mid-single digit growth in the Europe and Americas regions.
Growth in Europe transborder products and exports to the U.S.
offset a drop in U.S. and Asia exports.
On a reported basis, operating profit increased $245 million, or
73%, as a result of the mark-to-market pension entries mentioned
above.
Supply Chain &
Freight
Supply Chain & Freight adjusted operating profit increased
11%, to $199 million over adjusted 2014 fourth-quarter
results. Total segment revenue increased 6.0% to $2.6
billion. The inclusion of Coyote Logistics revenue for the
full quarter more than offset the impact of softer markets, lower
fuel surcharges and actions to improve revenue quality in the other
business units.
Freight Forwarding generated increased operating profit and
margin expansion despite declines in tonnage. International
Air Freight benefitted from revenue quality initiatives, which when
combined with a drop in buy-rates resulted in the best pricing
spreads in several years.
UPS Freight LTL revenue per hundredweight increased 2.1%.
Lower fuel surcharges drove the growth rate lower by about
550 basis points. This improvement was offset by a 12%
tonnage decline that lowered revenue. UPS continues to focus
on profitable revenue in a challenging market environment.
On a reported basis, operating profit for the segment increased
$212 million as a result of the mark-to-market pension entries
mentioned above.
Outlook
“This was the fourth consecutive quarter that UPS exceeded our
financial expectations,” said Richard Peretz, UPS chief financial
officer. “Our business generated strong results in
2015. While we face uncertain macro-economic conditions, we
are continuing to invest for profitable growth,” Peretz continued.
“Our guidance for 2016 full-year diluted earnings per share
is $5.70 to $5.90 an increase of 5% to 9% over adjusted 2015
results. Excluding the 2015 discrete tax credits, the growth
rate is 7% to 11%.”
Conference Call Information: UPS CEO
David Abney and CFO Richard Peretz will discuss fourth quarter
results with investors and analysts during a conference call at
8:30 a.m. ET, February 2, 2016. That call is open to
listeners through a live Webcast. To access the call, go to
www.investors.ups.com and click on “Earnings Webcast.”
UPS (NYSE:UPS) is a global leader in logistics,
offering a broad range of solutions including the transportation of
packages and freight; the facilitation of international trade, and
the deployment of advanced technology to more efficiently manage
the world of business. Headquartered in Atlanta, UPS serves more
than 220 countries and territories worldwide. The company can be
found on the Web at ups.com® and its corporate blog can be found at
Longitudes.ups.com. To get UPS news direct, visit
pressroom.ups.com/RSS.
We supplement the reporting of our financial information
determined under generally accepted accounting principles ("GAAP")
with certain non-GAAP financial measures, including, as applicable,
"as adjusted" operating profit, operating margin, pre-tax income,
net income and earnings per share. The equivalent measures
determined in accordance with GAAP are also referred to as
"reported" or "unadjusted.” Additionally, we disclose revenue
growth adjusted for the impact of foreign currency. We believe that
these adjusted measures provide meaningful information to assist
investors and analysts in understanding our financial results and
assessing our prospects for future performance. We believe these
adjusted financial measures are important indicators of our
recurring operations because they exclude items that may not be
indicative of, or are unrelated to, our core operating results, and
provide a better baseline for analyzing trends in our underlying
businesses. Furthermore, we use these adjusted financial measures
to determine awards for our management personnel under our
incentive compensation plans.
We supplemented the presentation of our 2015 and 2014 operating
profit, operating margin, pre-tax income, net income and earnings
per share with similar measures that excluded the impact of certain
transactions. In the fourth quarter of 2015, we recorded a $118
million pre-tax charge ($79 million after-tax) related to
mark-to-market loss recognized outside of a 10% corridor for
company-sponsored pension and post-retirement liabilities. This
charge is allocated between the U.S. Domestic Package segment ($62
million), International Package segment ($44 million), and Supply
Chain & Freight segment ($12 million). In the second
quarter of 2014, we recorded a $1.066 billion pre-tax charge ($665
million after-tax) related to the transfer of postretirement
benefit obligations to multiemployer healthcare plans for certain
union employees (under the Teamsters National Master
Agreement). This charge is allocated between the U.S.
Domestic Package segment ($957 million), the International Package
segment ($27 million) and the Supply Chain & Freight segment
($82 million). In the fourth quarter of 2014, we recorded a $1.062
billion pre-tax charge ($670 million after-tax) related to
mark-to-market loss recognized outside of a 10% corridor for
company-sponsored pension and post-retirement liabilities and a $36
million pre-tax charge ($22 million after-tax) related to the
transfer of postretirement obligations to multiemployer healthcare
plans for certain union employees (under non-National Master
Agreement). These charges are allocated between the U.S.
Domestic Package segment ($693 million), the International Package
segment ($201 million) and the Supply Chain & Freight segment
($204 million). We believe these adjusted measures provide
additional information that better enables shareowners to focus on
period-over-period operating performance.
Because non-GAAP financial measures are not standardized, it may
not be possible to compare these financial measures with other
companies' non-GAAP financial measures having the same or similar
names. These adjusted financial measures should not be considered
in isolation or as a substitute for GAAP operating profit,
operating margin, income before taxes, net income and earnings per
share, which are the most directly comparable GAAP financial
measures. These non-GAAP financial measures reflect an additional
way of viewing aspects of our operations that, when viewed with our
GAAP results and the preceding reconciliations to corresponding
GAAP financial measures, provide a more complete understanding of
our business. We strongly encourage investors to review our
financial statements and publicly-filed reports in their entirety
and not to rely on any single financial measure.
Except for historical information contained herein, the
statements made in this release constitute forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Such forward-looking statements, including statements regarding the
intent, belief or current expectations of UPS and its management
regarding the company's strategic directions, prospects and future
results, involve certain risks and uncertainties. Certain factors
may cause actual results to differ materially from those contained
in the forward-looking statements, including economic and other
conditions in the markets in which we operate, governmental
regulations, our competitive environment, negotiation and
ratification of labor contracts, strikes, work stoppages and
slowdowns, changes in aviation and motor fuel prices, cyclical and
seasonal fluctuations in our operating results, and other risks
discussed in the company's Form 10-K and other filings with the
Securities and Exchange Commission, which discussions are
incorporated herein by reference.
United Parcel
Service, Inc. |
Selected
Financial Data - Fourth Quarter |
(unaudited) |
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
|
December
31 |
Change |
|
|
2015 |
|
|
|
2014 |
|
|
$ |
|
% |
(amounts in millions, except per share data) |
|
|
|
|
|
|
|
Statement of Income Data: |
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
U.S. Domestic Package |
$ |
10,265 |
|
|
$ |
10,004 |
|
|
$ |
261 |
|
|
|
2.6 |
% |
International Package |
|
3,175 |
|
|
|
3,426 |
|
|
|
(251 |
) |
|
|
-7.3 |
% |
Supply Chain & Freight |
|
2,614 |
|
|
|
2,465 |
|
|
|
149 |
|
|
|
6.0 |
% |
Total revenue |
|
16,054 |
|
|
|
15,895 |
|
|
|
159 |
|
|
|
1.0 |
% |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Compensation and benefits |
|
8,504 |
|
|
|
9,188 |
|
|
|
(684 |
) |
|
|
-7.4 |
% |
Other |
|
5,499 |
|
|
|
5,953 |
|
|
|
(454 |
) |
|
|
-7.6 |
% |
Total operating expenses |
|
14,003 |
|
|
|
15,141 |
|
|
|
(1,138 |
) |
|
|
-7.5 |
% |
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
U.S. Domestic Package |
|
1,284 |
|
|
|
444 |
|
|
|
840 |
|
|
|
189.2 |
% |
International Package |
|
580 |
|
|
|
335 |
|
|
|
245 |
|
|
|
73.1 |
% |
Supply Chain & Freight |
|
187 |
|
|
|
(25 |
) |
|
|
212 |
|
|
|
N/A |
|
Total operating profit |
|
2,051 |
|
|
|
754 |
|
|
|
1,297 |
|
|
|
172.0 |
% |
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
Investment income |
|
3 |
|
|
|
(5 |
) |
|
|
8 |
|
|
|
N/A |
|
Interest expense |
|
(85 |
) |
|
|
(87 |
) |
|
|
2 |
|
|
|
-2.3 |
% |
Total other income (expense) |
|
(82 |
) |
|
|
(92 |
) |
|
|
10 |
|
|
|
-10.9 |
% |
|
|
|
|
|
|
|
|
Income before income taxes |
|
1,969 |
|
|
|
662 |
|
|
|
1,307 |
|
|
|
197.4 |
% |
|
|
|
|
|
|
|
|
Income tax expense |
|
638 |
|
|
|
209 |
|
|
|
429 |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
Net income |
$ |
1,331 |
|
|
$ |
453 |
|
|
$ |
878 |
|
|
|
193.8 |
% |
|
|
|
|
|
|
|
|
Net income as a percentage of revenue |
|
8.3 |
% |
|
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
Basic earnings per share |
$ |
1.49 |
|
|
$ |
0.50 |
|
|
$ |
0.99 |
|
|
|
198.0 |
% |
Diluted earnings per share |
$ |
1.48 |
|
|
$ |
0.49 |
|
|
$ |
0.99 |
|
|
|
N/A |
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
893 |
|
|
|
908 |
|
|
|
(15 |
) |
|
|
-1.7 |
% |
Diluted |
|
898 |
|
|
|
917 |
|
|
|
(19 |
) |
|
|
-2.1 |
% |
|
|
|
|
|
|
|
|
As adjusted income data: |
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
U.S. Domestic Package (1) |
$ |
1,346 |
|
|
$ |
1,137 |
|
|
$ |
209 |
|
|
|
18.4 |
% |
International Package (1) |
|
624 |
|
|
|
536 |
|
|
|
88 |
|
|
|
16.4 |
% |
Supply Chain & Freight (1) |
|
199 |
|
|
|
179 |
|
|
|
20 |
|
|
|
11.2 |
% |
Total operating profit (1) |
|
2,169 |
|
|
|
1,852 |
|
|
|
317 |
|
|
|
17.1 |
% |
|
|
|
|
|
|
|
|
Income before income taxes (1) |
$ |
2,087 |
|
|
$ |
1,760 |
|
|
$ |
327 |
|
|
|
18.6 |
% |
Net income (2) |
$ |
1,410 |
|
|
$ |
1,145 |
|
|
$ |
265 |
|
|
|
23.1 |
% |
|
|
|
|
|
|
|
|
Basic earnings per share (2) |
$ |
1.58 |
|
|
$ |
1.26 |
|
|
$ |
0.32 |
|
|
|
25.4 |
% |
Diluted earnings per share (2) |
$ |
1.57 |
|
|
$ |
1.25 |
|
|
$ |
0.32 |
|
|
|
25.6 |
% |
|
|
|
|
|
|
|
|
(1) 2015 operating profit and
consolidated income before income taxes exclude the impact of an
increase in pension expense due to a mark-to-market loss recognized
outside of a 10% corridor of $118 million, allocated between the
U.S. Domestic Package segment ($62 million), International Package
segment ($44 million), and Supply Chain & Freight segment ($12
million). |
|
2014 operating profit and
consolidated income before income taxes exclude the impact of an
increase in pension expense due to a mark-to-market loss recognized
outside of a 10% corridor of $1.062 billion, allocated between the
U.S. Domestic Package segment ($660 million), International Package
segment ($200 million), and Supply Chain & Freight segment
($202 million). |
|
2014 operating profit and
consolidated income before income taxes also exclude a $36 million
pre-tax charge associated with transferring postretirement
health and welfare benefit obligations to multiemployer healthcare
plans for certain union employees. The charge is allocated
between the U.S. Domestic Package segment ($33 million), the
International Package segment ($1 million) and the Supply Chain
& Freight segment ($2 million). |
|
(2) 2015 net income and earnings per
share amounts exclude the after-tax impact of the adjustments
described in (1), which decreased net income by $79 million. |
|
2014 net income and earnings per
share amounts exclude the after-tax impact of the adjustments
described in (1), which decreased net income by $692 million. |
United Parcel
Service, Inc. |
Selected
Operating Data - Fourth Quarter |
(unaudited) |
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
|
|
|
December
31 |
Change |
|
|
2015 |
|
|
|
2014 |
|
|
$ /
# |
|
% |
|
|
|
|
|
|
|
|
Revenue (in millions): |
|
|
|
|
|
|
|
U.S. Domestic Package: |
|
|
|
|
|
|
|
Next Day Air |
$ |
1,760 |
|
|
$ |
1,719 |
|
|
$ |
41 |
|
|
|
2.4 |
% |
Deferred |
|
1,246 |
|
|
|
1,165 |
|
|
|
81 |
|
|
|
7.0 |
% |
Ground |
|
7,259 |
|
|
|
7,120 |
|
|
|
139 |
|
|
|
2.0 |
% |
Total U.S. Domestic Package |
|
10,265 |
|
|
|
10,004 |
|
|
|
261 |
|
|
|
2.6 |
% |
International Package: |
|
|
|
|
|
|
|
Domestic |
|
626 |
|
|
|
715 |
|
|
|
(89 |
) |
|
|
-12.4 |
% |
Export |
|
2,394 |
|
|
|
2,540 |
|
|
|
(146 |
) |
|
|
-5.7 |
% |
Cargo and Other |
|
155 |
|
|
|
171 |
|
|
|
(16 |
) |
|
|
-9.4 |
% |
Total International Package |
|
3,175 |
|
|
|
3,426 |
|
|
|
(251 |
) |
|
|
-7.3 |
% |
Supply Chain & Freight: |
|
|
|
|
|
|
|
Forwarding and Logistics |
|
1,751 |
|
|
|
1,534 |
|
|
|
217 |
|
|
|
14.1 |
% |
Freight |
|
679 |
|
|
|
773 |
|
|
|
(94 |
) |
|
|
-12.2 |
% |
Other |
|
184 |
|
|
|
158 |
|
|
|
26 |
|
|
|
16.5 |
% |
Total Supply Chain &
Freight |
|
2,614 |
|
|
|
2,465 |
|
|
|
149 |
|
|
|
6.0 |
% |
Consolidated |
$ |
16,054 |
|
|
$ |
15,895 |
|
|
$ |
159 |
|
|
|
1.0 |
% |
|
|
|
|
|
|
|
|
Consolidated volume (in millions) |
|
1,338 |
|
|
|
1,315 |
|
|
|
23 |
|
|
|
1.8 |
% |
|
|
|
|
|
|
|
|
Operating weekdays |
|
62 |
|
|
|
62 |
|
|
|
- |
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
Average Daily Package Volume
(in thousands): |
|
|
|
|
|
|
U.S. Domestic Package: |
|
|
|
|
|
|
|
Next Day Air |
|
1,515 |
|
|
|
1,377 |
|
|
|
138 |
|
|
|
10.0 |
% |
Deferred |
|
1,778 |
|
|
|
1,549 |
|
|
|
229 |
|
|
|
14.8 |
% |
Ground |
|
15,321 |
|
|
|
15,260 |
|
|
|
61 |
|
|
|
0.4 |
% |
Total U.S. Domestic Package |
|
18,614 |
|
|
|
18,186 |
|
|
|
428 |
|
|
|
2.4 |
% |
International Package: |
|
|
|
|
|
|
|
Domestic |
|
1,704 |
|
|
|
1,748 |
|
|
|
(44 |
) |
|
|
-2.5 |
% |
Export |
|
1,271 |
|
|
|
1,268 |
|
|
|
3 |
|
|
|
0.2 |
% |
Total International Package |
|
2,975 |
|
|
|
3,016 |
|
|
|
(41 |
) |
|
|
-1.4 |
% |
Consolidated |
|
21,589 |
|
|
|
21,202 |
|
|
|
387 |
|
|
|
1.8 |
% |
|
|
|
|
|
|
|
|
Average Revenue Per Piece: |
|
|
|
|
|
|
|
U.S. Domestic Package: |
|
|
|
|
|
|
|
Next Day Air |
$ |
18.74 |
|
|
$ |
20.13 |
|
|
$ |
(1.39 |
) |
|
|
-6.9 |
% |
Deferred |
|
11.30 |
|
|
|
12.13 |
|
|
|
(0.83 |
) |
|
|
-6.8 |
% |
Ground |
|
7.64 |
|
|
|
7.53 |
|
|
|
0.11 |
|
|
|
1.5 |
% |
Total U.S. Domestic Package |
|
8.89 |
|
|
|
8.87 |
|
|
|
0.02 |
|
|
|
0.2 |
% |
International Package: |
|
|
|
|
|
|
|
Domestic |
|
5.93 |
|
|
|
6.60 |
|
|
|
(0.67 |
) |
|
|
-10.2 |
% |
Export |
|
30.38 |
|
|
|
32.31 |
|
|
|
(1.93 |
) |
|
|
-6.0 |
% |
Total International Package |
|
16.37 |
|
|
|
17.41 |
|
|
|
(1.04 |
) |
|
|
-6.0 |
% |
Consolidated |
$ |
9.93 |
|
|
$ |
10.09 |
|
|
$ |
(0.16 |
) |
|
|
-1.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain prior year amounts have been
reclassified to conform to the current year presentation. |
United Parcel
Service, Inc. |
Selected
Financial Data - Year to Date |
(unaudited) |
|
|
|
|
|
|
|
|
|
Twelve Months
Ended |
|
|
|
December
31 |
Change |
|
|
2015 |
|
|
|
2014 |
|
|
$ |
|
% |
(amounts in millions, except per share data) |
|
|
|
|
|
|
|
Statement of Income Data: |
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
U.S. Domestic Package |
$ |
36,747 |
|
|
$ |
35,851 |
|
|
$ |
896 |
|
|
|
2.5 |
% |
International Package |
|
12,149 |
|
|
|
12,988 |
|
|
|
(839 |
) |
|
|
-6.5 |
% |
Supply Chain & Freight |
|
9,467 |
|
|
|
9,393 |
|
|
|
74 |
|
|
|
0.8 |
% |
Total revenue |
|
58,363 |
|
|
|
58,232 |
|
|
|
131 |
|
|
|
0.2 |
% |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Compensation and benefits |
|
31,028 |
|
|
|
32,045 |
|
|
|
(1,017 |
) |
|
|
-3.2 |
% |
Other |
|
19,667 |
|
|
|
21,219 |
|
|
|
(1,552 |
) |
|
|
-7.3 |
% |
Total operating expenses |
|
50,695 |
|
|
|
53,264 |
|
|
|
(2,569 |
) |
|
|
-4.8 |
% |
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
U.S. Domestic Package |
|
4,767 |
|
|
|
2,859 |
|
|
|
1,908 |
|
|
|
66.7 |
% |
International Package |
|
2,137 |
|
|
|
1,677 |
|
|
|
460 |
|
|
|
27.4 |
% |
Supply Chain & Freight |
|
764 |
|
|
|
432 |
|
|
|
332 |
|
|
|
76.9 |
% |
Total operating profit |
|
7,668 |
|
|
|
4,968 |
|
|
|
2,700 |
|
|
|
54.3 |
% |
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
Investment income |
|
15 |
|
|
|
22 |
|
|
|
(7 |
) |
|
|
-31.8 |
% |
Interest expense |
|
(341 |
) |
|
|
(353 |
) |
|
|
12 |
|
|
|
-3.4 |
% |
Total other income (expense) |
|
(326 |
) |
|
|
(331 |
) |
|
|
5 |
|
|
|
-1.5 |
% |
|
|
|
|
|
|
|
|
Income before income taxes |
|
7,342 |
|
|
|
4,637 |
|
|
|
2,705 |
|
|
|
58.3 |
% |
|
|
|
|
|
|
|
|
Income tax expense |
|
2,498 |
|
|
|
1,605 |
|
|
|
893 |
|
|
|
55.6 |
% |
|
|
|
|
|
|
|
|
Net income |
$ |
4,844 |
|
|
$ |
3,032 |
|
|
$ |
1,812 |
|
|
|
59.8 |
% |
|
|
|
|
|
|
|
|
Net income as a percentage of revenue |
|
8.3 |
% |
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
Basic earnings per share |
$ |
5.38 |
|
|
$ |
3.31 |
|
|
$ |
2.07 |
|
|
|
62.5 |
% |
Diluted earnings per share |
$ |
5.35 |
|
|
$ |
3.28 |
|
|
$ |
2.07 |
|
|
|
63.1 |
% |
|
|
|
|
|
|
|
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
901 |
|
|
|
916 |
|
|
|
(15 |
) |
|
|
-1.6 |
% |
Diluted |
|
906 |
|
|
|
924 |
|
|
|
(18 |
) |
|
|
-1.9 |
% |
|
|
|
|
|
|
|
|
As adjusted income data: |
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
U.S. Domestic Package (1) |
$ |
4,829 |
|
|
$ |
4,509 |
|
|
$ |
320 |
|
|
|
7.1 |
% |
International Package (1) |
|
2,181 |
|
|
|
1,905 |
|
|
|
276 |
|
|
|
14.5 |
% |
Supply Chain &
Freight (1) |
|
776 |
|
|
|
718 |
|
|
|
58 |
|
|
|
8.1 |
% |
Total operating profit (1) |
|
7,786 |
|
|
|
7,132 |
|
|
|
654 |
|
|
|
9.2 |
% |
|
|
|
|
|
|
|
|
Income before income taxes (1) |
$ |
7,460 |
|
|
$ |
6,801 |
|
|
$ |
659 |
|
|
|
9.7 |
% |
Net income (2) |
$ |
4,923 |
|
|
$ |
4,389 |
|
|
$ |
534 |
|
|
|
12.2 |
% |
|
|
|
|
|
|
|
|
Basic earnings per share (2) |
$ |
5.46 |
|
|
$ |
4.79 |
|
|
$ |
0.67 |
|
|
|
14.0 |
% |
Diluted earnings per share (2) |
$ |
5.43 |
|
|
$ |
4.75 |
|
|
$ |
0.68 |
|
|
|
14.3 |
% |
|
|
|
|
|
|
|
|
(1) 2015 operating profit and
consolidated income before income taxes exclude the impact of an
increase in pension expense due to a mark-to-market loss recognized
outside of a 10% corridor of $118 million, allocated between the
U.S. Domestic Package segment ($62 million), International Package
segment ($44 million), and Supply Chain & Freight segment ($12
million). |
|
|
|
|
|
|
|
|
2014 operating profit and
consolidated income before income taxes exclude the impact of an
increase in pension expense due to a mark-to-market loss recognized
outside of a 10% corridor of $1.062 billion, allocated between the
U.S. Domestic Package segment ($660 million), International Package
segment ($200 million), and Supply Chain & Freight segment
($202 million). |
|
|
|
|
|
|
|
|
2014 also excludes a $1.102 billion
pre-tax charge associated with transferring postretirement health
and welfare benefit obligations to multiemployer healthcare plans
for certain union employees. The charge was allocated between
the U.S. Domestic Package segment ($990 million), the International
Package segment ($28 million) and the Supply Chain & Freight
segment ($84 million). |
|
|
|
|
|
|
|
|
(2) 2015 net income and earnings per
share amounts exclude the after-tax impact of the adjustments
described in (1), which decreased net income by $79 million. |
|
|
|
|
|
|
|
|
2014 net income and earnings per
share amounts exclude the after-tax impact of the adjustments
described in (1), which combined to a decrease in net income by
$1.357 billion. |
United Parcel
Service, Inc. |
Selected
Operating Data - Year to Date |
(unaudited) |
|
|
|
|
|
|
|
|
|
Twelve Months
Ended |
|
|
|
|
|
December
31 |
Change |
|
|
2015 |
|
|
|
2014 |
|
|
$ /
# |
|
% |
|
|
|
|
|
|
|
|
Revenue (in millions): |
|
|
|
|
|
|
|
U.S. Domestic Package: |
|
|
|
|
|
|
|
Next Day Air |
$ |
6,570 |
|
|
$ |
6,581 |
|
|
$ |
(11 |
) |
|
|
-0.2 |
% |
Deferred |
|
3,903 |
|
|
|
3,672 |
|
|
|
231 |
|
|
|
6.3 |
% |
Ground |
|
26,274 |
|
|
|
25,598 |
|
|
|
676 |
|
|
|
2.6 |
% |
Total U.S. Domestic Package |
|
36,747 |
|
|
|
35,851 |
|
|
|
896 |
|
|
|
2.5 |
% |
International Package: |
|
|
|
|
|
|
|
Domestic |
|
2,425 |
|
|
|
2,784 |
|
|
|
(359 |
) |
|
|
-12.9 |
% |
Export |
|
9,092 |
|
|
|
9,586 |
|
|
|
(494 |
) |
|
|
-5.2 |
% |
Cargo and Other |
|
632 |
|
|
|
618 |
|
|
|
14 |
|
|
|
2.3 |
% |
Total International Package |
|
12,149 |
|
|
|
12,988 |
|
|
|
(839 |
) |
|
|
-6.5 |
% |
Supply Chain & Freight: |
|
|
|
|
|
|
|
Forwarding and Logistics |
|
5,900 |
|
|
|
5,758 |
|
|
|
142 |
|
|
|
2.5 |
% |
Freight |
|
2,881 |
|
|
|
3,048 |
|
|
|
(167 |
) |
|
|
-5.5 |
% |
Other |
|
686 |
|
|
|
587 |
|
|
|
99 |
|
|
|
16.9 |
% |
Total Supply Chain &
Freight |
|
9,467 |
|
|
|
9,393 |
|
|
|
74 |
|
|
|
0.8 |
% |
Consolidated |
$ |
58,363 |
|
|
$ |
58,232 |
|
|
$ |
131 |
|
|
|
0.2 |
% |
|
|
|
|
|
|
|
|
Consolidated volume (in millions) |
|
4,654 |
|
|
|
4,558 |
|
|
|
96 |
|
|
|
2.1 |
% |
|
|
|
|
|
|
|
|
Operating weekdays |
|
254 |
|
|
|
253 |
|
|
|
1 |
|
|
|
0.4 |
% |
|
|
|
|
|
|
|
|
Average Daily Package Volume
(in thousands): |
|
|
|
|
|
|
U.S. Domestic Package: |
|
|
|
|
|
|
|
Next Day Air |
|
1,316 |
|
|
|
1,274 |
|
|
|
42 |
|
|
|
3.3 |
% |
Deferred |
|
1,313 |
|
|
|
1,155 |
|
|
|
158 |
|
|
|
13.7 |
% |
Ground |
|
12,969 |
|
|
|
12,893 |
|
|
|
76 |
|
|
|
0.6 |
% |
Total U.S. Domestic Package |
|
15,598 |
|
|
|
15,322 |
|
|
|
276 |
|
|
|
1.8 |
% |
International Package: |
|
|
|
|
|
|
|
Domestic |
|
1,575 |
|
|
|
1,579 |
|
|
|
(4 |
) |
|
|
-0.3 |
% |
Export |
|
1,151 |
|
|
|
1,115 |
|
|
|
36 |
|
|
|
3.2 |
% |
Total International Package |
|
2,726 |
|
|
|
2,694 |
|
|
|
32 |
|
|
|
1.2 |
% |
Consolidated |
|
18,324 |
|
|
|
18,016 |
|
|
|
308 |
|
|
|
1.7 |
% |
|
|
|
|
|
|
|
|
Average Revenue Per Piece: |
|
|
|
|
|
|
|
U.S. Domestic Package: |
|
|
|
|
|
|
|
Next Day Air |
$ |
19.66 |
|
|
$ |
20.42 |
|
|
$ |
(0.76 |
) |
|
|
-3.7 |
% |
Deferred |
|
11.70 |
|
|
|
12.57 |
|
|
|
(0.87 |
) |
|
|
-6.9 |
% |
Ground |
|
7.98 |
|
|
|
7.85 |
|
|
|
0.13 |
|
|
|
1.7 |
% |
Total U.S. Domestic Package |
|
9.28 |
|
|
|
9.25 |
|
|
|
0.03 |
|
|
|
0.3 |
% |
International Package: |
|
|
|
|
|
|
|
Domestic |
|
6.06 |
|
|
|
6.97 |
|
|
|
(0.91 |
) |
|
|
-13.1 |
% |
Export |
|
31.10 |
|
|
|
33.98 |
|
|
|
(2.88 |
) |
|
|
-8.5 |
% |
Total International Package |
|
16.63 |
|
|
|
18.15 |
|
|
|
(1.52 |
) |
|
|
-8.4 |
% |
Consolidated |
$ |
10.37 |
|
|
$ |
10.58 |
|
|
$ |
(0.21 |
) |
|
|
-2.0 |
% |
|
|
|
|
|
|
|
|
Certain prior year amounts have been
reclassified to conform to the current year presentation. |
|
|
United Parcel
Service, Inc. |
Reconciliation of
Free Cash Flow |
(unaudited) |
|
|
|
|
|
Preliminary |
|
|
Year-to-Date |
(amounts in millions) |
|
December
31 |
Net cash from operations |
|
$ |
7,414 |
|
Capital expenditures |
|
|
(2,384 |
) |
Proceeds from disposals of PP&E |
|
|
26 |
|
Net change in finance receivables |
|
|
5 |
|
Other investing activities |
|
|
(12 |
) |
Free cash flow |
|
$ |
5,049 |
|
|
|
|
|
|
|
Amounts are subject to reclassification. |
|
|
|
|
|
Contacts: Steve Gaut, Public Relations
404-828-8787
Joe Wilkins, Investor Relations
404-828-8209
United Parcel Service (NYSE:UPS)
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