UPS (NYSE:UPS) today announced third-quarter 2016 diluted earnings
per share of $1.44, a 3.6% increase over the same period last
year. International operating profit increased 14% to $576
million, achieving the seventh consecutive quarter of double-digit
growth.
Total reported revenue was $14.9 billion, up 4.9% over the same
quarter last year. Changes in fuel surcharges and currency
exchange rates negatively affected revenue growth. On a
currency-neutral basis, revenue increased 5.1%. In addition,
lower fuel surcharge rates reduced revenue growth by approximately
50 basis points.
“We are providing value to UPS customers worldwide and our
solutions enabled strong growth this quarter,” said David Abney,
UPS chairman and CEO. ”The investments we are making in
technology and capacity will ensure UPS continues to deliver great
results well into the future.”
Outlook
The company does not provide full-year 2016 earnings per share
guidance on a GAAP basis, or a reconciliation from its full-year
2016 adjusted earnings per share guidance to full-year 2016 GAAP
earnings per share, because it is not possible to reliably forecast
certain items that could impact GAAP earnings per share. In the
fourth quarter, GAAP earnings per share is subject to an expected
year-end mark-to-market (“MTM”) pension accounting adjustment,
which could be material.
The MTM adjustment is significantly impacted by changes in
interest rates, financial returns, demographics and other actuarial
assumptions. As a result, the MTM pension adjustment is not
included in the company’s 2016 full-year earnings per share
guidance or a reconciliation to 2016 GAAP earnings.
The company’s adjusted earnings guidance for full-year 2016
remains at $5.70 to $5.90 per diluted share. Adjusted earnings per
share refers to the company’s expectation for earnings per share
before the impact of the expected MTM pension accounting
adjustment.
“Through the third quarter we are performing according to
our expectations, and we’ve taken the necessary steps to ensure we
capitalize on record volume levels during peak season,” said
Richard Peretz, UPS chief financial officer. “As a result, we
remain confident in achieving our 2016 full-year guidance for
adjusted diluted earnings per share.”
U.S. Domestic
Package
U.S. Domestic revenue increased 4.8% over the third quarter of
2015, to $9.3 billion. Average daily package volume increased
5.7%, with Deferred Air products up 10%, Next Day Air up 5.9% and
Ground products up 5.2%. Strong business-to-consumer (B2C)
growth trends continued this quarter, while business-to-business
(B2B) growth was positive primarily due to online retail
returns.
Revenue per package increased 0.9% over the same period last
year. Fuel surcharge rates reduced revenue per package growth
by about 40 basis points. Increases in base rates offset
changes in product and customer mix.
The underlying performance of the U.S. Domestic segment remains
strong and is consistent with the first half of the year.
Operating profit was $1.3 billion and operating margin was
13.5%.
International
Package
International operating profit jumped 14% to $576 million, a
record for any third quarter in company history. Volume
growth in all products, base-rate increases and network efficiency
gains contributed to the improved profitability.
Revenue was $3.0 billion, up 2.2% compared to the third quarter
last year. On a currency-neutral basis, revenue was 3.1%
higher. In addition, lower fuel surcharges reduced revenue
growth by approximately 70 basis points. Daily Export volume
increased 7.1%, on double-digit gains out of Asia and high-single
digit cross-border shipments within Europe.
Revenue per package decreased 2.8% from the prior year, with
currency-neutral yields down 1.9%. Additionally, lower fuel
surcharge rates reduced revenue-per-package growth. Changes
in trade lanes and product mix offset base rate
improvements.
Supply Chain &
Freight
Supply Chain and Freight revenue increased 8.1%, to $2.6
billion. Revenue growth was primarily due to the Coyote
Logistics acquisition midway through the third quarter last
year. Weak market conditions in the Air Freight Forwarding
and LTL (less than truckload) markets weighed on top-line growth.
Market conditions in International Air Freight and the U.S.
truckload brokerage industries remain soft. Despite these
conditions, we saw increased loads in Coyote Logistics. The
Forwarding business experienced tonnage growth in the Ocean and
North American Air Freight products partially offsetting the
decline in International Air Freight tonnage.
The Distribution unit experienced mid-single-digit revenue
growth this quarter. Revenue gains in the Healthcare,
Retail and Aerospace sectors led the unit higher.
UPS Freight LTL revenue per hundredweight increased 3.7% over
the same period last year. Total tonnage remains challenged
by current market conditions. The business unit continued to
focus on disciplined revenue management and profitable trade
lanes.
Cash Flow
For the nine months ended Sept. 30, UPS generated $5.4 billion
in cash from operations, which includes a planned discretionary
pension contribution of $1.2 billion in the third quarter.
Free cash flow was $3.6 billion after making capital expenditures
of $1.8 billion. The company paid dividends of about $2.0
billion and repurchased 19.5 million shares for $2.0 billion.
Conference Call Information:
UPS CEO David Abney and CFO Richard Peretz will discuss third
quarter results with investors and analysts during a conference
call at 8:30 a.m. ET, Oct. 27, 2016. That call is open to
listeners through a live webcast. To access the call, go to
www.investors.ups.com and click on “Quarterly Earnings” then
“Webcast.”
About UPSUPS (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 to exclude the impact of fourth
quarter mark-to-market pension accounting adjustments. The
equivalent measures determined in accordance with GAAP are also
referred to as "reported" or "unadjusted.” Additionally, we
disclose free cash flow as well as revenue and revenue per piece
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.
Free cash flow is defined as net cash from operations less
capital expenditures, proceeds from disposals of property, plant
and equipment, net change in finance receivables and other
investing activities. We believe this metric is an important
indicator of how much cash is generated by regular business
operations and we use it as a measure of cash available to meet
debt obligations and return cash to shareowners.
Currency neutral revenue and revenue per piece are calculated by
multiplying prior period reported U.S. dollar revenue and revenue
per piece by the prior period average exchange rates to derive
prior period local currency revenue and revenue per piece.
The derived prior period local currency revenue and revenue per
piece are then divided by the average foreign currency exchange
rates used to translate the company's financial statements in the
comparable current year. The difference between the prior period
reported U.S. dollar revenue and revenue per piece and the derived
prior period U.S. dollar revenue and revenue per piece (including
the impact of current period currency hedging activities) is added
to the current period reported U.S. dollar revenue and revenue per
piece to derive current period currency neutral U.S. dollar revenue
and revenue per piece.
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 revenue, operating profit,
operating margin, income before taxes, net income, earnings per
share and cash flow from operations, 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.
Forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially
from our historical experience and our present expectations or
anticipated results. These risks and uncertainties include, but are
not limited to: general economic conditions, both in the U.S. and
internationally; significant competition on a local, regional,
national, and international basis; changes in our relationships
with our significant customers; the existing complex and stringent
regulation in the U.S. and internationally, changes to which can
impact our business; increased security requirements that may
increase our costs of operations and reduce operating efficiencies;
legal, regulatory or market responses to global climate change;
negotiation and ratification of labor contracts; strikes, work
stoppages and slowdowns by our employees; the effects of changing
prices of energy, including gasoline, diesel and jet fuel, and
interruptions in supplies of these commodities; changes in exchange
rates or interest rates; our ability to maintain the image of our
brand; breaches in data security; disruptions to the Internet or
our technology infrastructure; our ability to accurately forecast
our future capital investment needs; exposure to changing economic,
political and social developments in international and emerging
markets; changes in business strategy, government regulations, or
economic or market conditions that may result in substantial
impairment of our assets; increases in our expenses or funding
obligations relating to employee health, retiree health and/or
pension benefits; the potential for various claims and litigation
related to labor and employment, personal injury, property damage,
business practices, environmental liability and other matters; our
ability to realize the anticipated benefits from acquisitions,
joint ventures or strategic alliances; our ability to manage
insurance and claims expenses; and other risks discussed in our
filings with the Securities and Exchange Commission from time to
time, including our Annual Report on Form 10-K for the year ended
December 31, 2015 and our Form 10-Q for the quarterly period ended
June 30, 2016, or described from time to time in our future reports
filed with the Securities and Exchange Commission. You should
consider the limitations on, and risks associated with,
forward-looking statements and not unduly rely on the accuracy of
predictions contained in such forward-looking statements. We do not
undertake any obligation to update forward-looking statements to
reflect events, circumstances, changes in expectations, or the
occurrence of unanticipated events after the date of those
statements.
United Parcel Service,
Inc.Selected Financial Data - Third
Quarter(unaudited) |
|
|
Three Months Ended |
|
|
|
September 30 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Change |
|
% Change |
(amounts in millions,
except per share data) |
|
|
|
|
|
|
|
Statement of
Income Data: |
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
U.S. Domestic
Package |
$ |
9,289 |
|
|
$ |
8,860 |
|
|
$ |
429 |
|
|
|
4.8 |
% |
International
Package |
|
3,024 |
|
|
|
2,959 |
|
|
|
65 |
|
|
|
2.2 |
% |
Supply Chain
& Freight |
|
2,615 |
|
|
|
2,418 |
|
|
|
197 |
|
|
|
8.1 |
% |
Total
revenue |
|
14,928 |
|
|
|
14,237 |
|
|
|
691 |
|
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Compensation and
benefits |
|
7,857 |
|
|
|
7,458 |
|
|
|
399 |
|
|
|
5.3 |
% |
Other |
|
5,037 |
|
|
|
4,795 |
|
|
|
242 |
|
|
|
5.0 |
% |
Total operating
expenses |
|
12,894 |
|
|
|
12,253 |
|
|
|
641 |
|
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
U.S. Domestic
Package |
|
1,252 |
|
|
|
1,258 |
|
|
|
(6 |
) |
|
|
-0.5 |
% |
International
Package |
|
576 |
|
|
|
507 |
|
|
|
69 |
|
|
|
13.6 |
% |
Supply Chain
& Freight |
|
206 |
|
|
|
219 |
|
|
|
(13 |
) |
|
|
-5.9 |
% |
Total operating
profit |
|
2,034 |
|
|
|
1,984 |
|
|
|
50 |
|
|
|
2.5 |
% |
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
Investment
income and other |
|
13 |
|
|
|
4 |
|
|
|
9 |
|
|
N/A |
Interest
expense |
|
(94 |
) |
|
|
(83 |
) |
|
|
(11 |
) |
|
|
13.3 |
% |
Total other
income (expense) |
|
(81 |
) |
|
|
(79 |
) |
|
|
(2 |
) |
|
|
2.5 |
% |
|
|
|
|
|
|
|
|
Income before income
taxes |
|
1,953 |
|
|
|
1,905 |
|
|
|
48 |
|
|
|
2.5 |
% |
|
|
|
|
|
|
|
|
Income tax expense |
|
683 |
|
|
|
648 |
|
|
|
35 |
|
|
|
5.4 |
% |
|
|
|
|
|
|
|
|
Net income |
$ |
1,270 |
|
|
$ |
1,257 |
|
|
$ |
13 |
|
|
|
1.0 |
% |
|
|
|
|
|
|
|
|
Net income as a
percentage of revenue |
|
8.5 |
% |
|
|
8.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
Basic earnings
per share |
$ |
1.44 |
|
|
$ |
1.40 |
|
|
$ |
0.04 |
|
|
|
2.9 |
% |
Diluted earnings
per share |
$ |
1.44 |
|
|
$ |
1.39 |
|
|
$ |
0.05 |
|
|
|
3.6 |
% |
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
880 |
|
|
|
895 |
|
|
|
(15 |
) |
|
|
-1.7 |
% |
Diluted |
|
885 |
|
|
|
903 |
|
|
|
(18 |
) |
|
|
-2.0 |
% |
United Parcel Service, Inc.Selected Operating
Data - Third Quarter(unaudited) |
|
|
Three Months Ended |
|
|
|
|
|
September 30 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
Revenue (in
millions): |
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
Next Day
Air |
$ |
1,706 |
|
|
$ |
1,662 |
|
|
$ |
44 |
|
|
|
2.6 |
% |
Deferred |
|
967 |
|
|
|
883 |
|
|
|
84 |
|
|
|
9.5 |
% |
Ground |
|
6,616 |
|
|
|
6,315 |
|
|
|
301 |
|
|
|
4.8 |
% |
Total
U.S. Domestic Package |
|
9,289 |
|
|
|
8,860 |
|
|
|
429 |
|
|
|
4.8 |
% |
International
Package: |
|
|
|
|
|
|
|
Domestic |
|
609 |
|
|
|
594 |
|
|
|
15 |
|
|
|
2.5 |
% |
Export |
|
2,284 |
|
|
|
2,215 |
|
|
|
69 |
|
|
|
3.1 |
% |
Cargo and
Other |
|
131 |
|
|
|
150 |
|
|
|
(19 |
) |
|
|
-12.7 |
% |
Total
International Package |
|
3,024 |
|
|
|
2,959 |
|
|
|
65 |
|
|
|
2.2 |
% |
Supply Chain &
Freight: |
|
|
|
|
|
|
|
Forwarding and Logistics |
|
1,735 |
|
|
|
1,500 |
|
|
|
235 |
|
|
|
15.7 |
% |
Freight |
|
701 |
|
|
|
740 |
|
|
|
(39 |
) |
|
|
-5.3 |
% |
Other |
|
179 |
|
|
|
178 |
|
|
|
1 |
|
|
|
0.6 |
% |
Total
Supply Chain & Freight |
|
2,615 |
|
|
|
2,418 |
|
|
|
197 |
|
|
|
8.1 |
% |
Consolidated |
$ |
14,928 |
|
|
$ |
14,237 |
|
|
$ |
691 |
|
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
Consolidated volume (in
millions) |
|
1,162 |
|
|
|
1,114 |
|
|
|
48 |
|
|
|
4.3 |
% |
|
|
|
|
|
|
|
|
Operating weekdays |
|
64 |
|
|
|
65 |
|
|
|
(1 |
) |
|
|
-1.5 |
% |
|
|
|
|
|
|
|
|
Average Daily Package Volume (in thousands): |
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
Next Day
Air |
|
1,361 |
|
|
|
1,285 |
|
|
|
76 |
|
|
|
5.9 |
% |
Deferred |
|
1,260 |
|
|
|
1,141 |
|
|
|
119 |
|
|
|
10.4 |
% |
Ground |
|
12,743 |
|
|
|
12,114 |
|
|
|
629 |
|
|
|
5.2 |
% |
Total
U.S. Domestic Package |
|
15,364 |
|
|
|
14,540 |
|
|
|
824 |
|
|
|
5.7 |
% |
International
Package: |
|
|
|
|
|
|
|
Domestic |
|
1,612 |
|
|
|
1,495 |
|
|
|
117 |
|
|
|
7.8 |
% |
Export |
|
1,176 |
|
|
|
1,098 |
|
|
|
78 |
|
|
|
7.1 |
% |
Total
International Package |
|
2,788 |
|
|
|
2,593 |
|
|
|
195 |
|
|
|
7.5 |
% |
Consolidated |
|
18,152 |
|
|
|
17,133 |
|
|
|
1,019 |
|
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
Next Day
Air |
$ |
19.59 |
|
|
$ |
19.90 |
|
|
$ |
(0.31 |
) |
|
|
-1.6 |
% |
Deferred |
|
11.99 |
|
|
|
11.91 |
|
|
|
0.08 |
|
|
|
0.7 |
% |
Ground |
|
8.11 |
|
|
|
8.02 |
|
|
|
0.09 |
|
|
|
1.1 |
% |
Total
U.S. Domestic Package |
|
9.45 |
|
|
|
9.37 |
|
|
|
0.08 |
|
|
|
0.9 |
% |
International
Package: |
|
|
|
|
|
|
|
Domestic |
|
5.90 |
|
|
|
6.11 |
|
|
|
(0.21 |
) |
|
|
-3.4 |
% |
Export |
|
30.35 |
|
|
|
31.04 |
|
|
|
(0.69 |
) |
|
|
-2.2 |
% |
Total
International Package |
|
16.21 |
|
|
|
16.67 |
|
|
|
(0.46 |
) |
|
|
-2.8 |
% |
Consolidated |
$ |
10.49 |
|
|
$ |
10.48 |
|
|
$ |
0.01 |
|
|
|
0.1 |
% |
United Parcel Service, Inc.Supplemental
Analysis of Currency |
|
Currency Neutral Revenue Per
Piece |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Currency Neutral |
|
|
|
September 30 |
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
% Change |
|
Currency |
|
2016* |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
|
|
Domestic |
$ |
5.90 |
|
|
$ |
6.11 |
|
|
|
-3.4 |
% |
|
$ |
0.18 |
|
|
$ |
6.08 |
|
|
|
-0.5 |
% |
Export |
|
30.35 |
|
|
|
31.04 |
|
|
|
-2.2 |
% |
|
|
0.10 |
|
|
|
30.45 |
|
|
|
-1.9 |
% |
Total
International Package |
$ |
16.21 |
|
|
$ |
16.67 |
|
|
|
-2.8 |
% |
|
$ |
0.15 |
|
|
$ |
16.36 |
|
|
|
-1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
$ |
10.49 |
|
|
$ |
10.48 |
|
|
|
0.1 |
% |
|
$ |
0.02 |
|
|
$ |
10.51 |
|
|
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted reflect impacts for currency exchange rate
differences |
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Currency Neutral |
|
|
|
September 30 |
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
% Change |
|
Currency |
|
2016* |
|
% Change |
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
9,289 |
|
|
$ |
8,860 |
|
|
|
4.8 |
% |
|
$ |
- |
|
|
$ |
9,289 |
|
|
|
4.8 |
% |
International Package |
|
3,024 |
|
|
|
2,959 |
|
|
|
2.2 |
% |
|
|
26 |
|
|
|
3,050 |
|
|
|
3.1 |
% |
Supply
Chain & Freight |
|
2,615 |
|
|
|
2,418 |
|
|
|
8.1 |
% |
|
|
8 |
|
|
|
2,623 |
|
|
|
8.5 |
% |
Total
revenue |
$ |
14,928 |
|
|
$ |
14,237 |
|
|
|
4.9 |
% |
|
$ |
34 |
|
|
$ |
14,962 |
|
|
|
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted reflect impacts for currency exchange rate
differences |
United Parcel Service, Inc.Selected Financial
Data - Year to Date(unaudited) |
|
|
Nine Months Ended |
|
|
|
September 30 |
|
|
|
2016 |
|
|
|
2015 |
|
|
Change |
|
% Change |
(amounts in millions,
except per share data) |
|
|
|
|
|
|
|
Statement of
Income Data: |
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
U.S. Domestic
Package |
$ |
27,388 |
|
|
$ |
26,482 |
|
|
$ |
906 |
|
|
|
3.4 |
% |
International
Package |
|
9,015 |
|
|
|
8,974 |
|
|
|
41 |
|
|
|
0.5 |
% |
Supply Chain
& Freight |
|
7,572 |
|
|
|
6,853 |
|
|
|
719 |
|
|
|
10.5 |
% |
Total
revenue |
|
43,975 |
|
|
|
42,309 |
|
|
|
1,666 |
|
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Compensation and
benefits |
|
23,448 |
|
|
|
22,524 |
|
|
|
924 |
|
|
|
4.1 |
% |
Other |
|
14,632 |
|
|
|
14,168 |
|
|
|
464 |
|
|
|
3.3 |
% |
Total operating
expenses |
|
38,080 |
|
|
|
36,692 |
|
|
|
1,388 |
|
|
|
3.8 |
% |
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
U.S. Domestic
Package |
|
3,587 |
|
|
|
3,483 |
|
|
|
104 |
|
|
|
3.0 |
% |
International
Package |
|
1,763 |
|
|
|
1,557 |
|
|
|
206 |
|
|
|
13.2 |
% |
Supply Chain
& Freight |
|
545 |
|
|
|
577 |
|
|
|
(32 |
) |
|
|
-5.5 |
% |
Total operating
profit |
|
5,895 |
|
|
|
5,617 |
|
|
|
278 |
|
|
|
4.9 |
% |
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
Investment
income and other |
|
38 |
|
|
|
12 |
|
|
|
26 |
|
|
|
N/A |
|
Interest
expense |
|
(281 |
) |
|
|
(256 |
) |
|
|
(25 |
) |
|
|
9.8 |
% |
Total other
income (expense) |
|
(243 |
) |
|
|
(244 |
) |
|
|
1 |
|
|
|
-0.4 |
% |
|
|
|
|
|
|
|
|
Income before income
taxes |
|
5,652 |
|
|
|
5,373 |
|
|
|
279 |
|
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
Income tax expense |
|
1,982 |
|
|
|
1,860 |
|
|
|
122 |
|
|
|
6.6 |
% |
|
|
|
|
|
|
|
|
Net income |
$ |
3,670 |
|
|
$ |
3,513 |
|
|
$ |
157 |
|
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
Net income as a
percentage of revenue |
|
8.3 |
% |
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
Basic earnings
per share |
$ |
4.15 |
|
|
$ |
3.90 |
|
|
$ |
0.25 |
|
|
|
6.4 |
% |
Diluted earnings
per share |
$ |
4.13 |
|
|
$ |
3.87 |
|
|
$ |
0.26 |
|
|
|
6.7 |
% |
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
885 |
|
|
|
901 |
|
|
|
(16 |
) |
|
|
-1.8 |
% |
Diluted |
|
889 |
|
|
|
908 |
|
|
|
(19 |
) |
|
|
-2.1 |
% |
United Parcel Service, Inc.Selected Financial
Data - Year to Date(unaudited) |
|
|
Nine Months Ended |
|
|
|
|
|
|
September 30 |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
|
|
Revenue (in millions): |
|
|
|
|
|
|
|
|
U.S.
Domestic Package: |
|
|
|
|
|
|
|
|
Next Day Air |
$ |
4,918 |
|
|
$ |
4,810 |
|
|
$ |
108 |
|
|
|
2.2 |
% |
|
Deferred |
|
2,781 |
|
|
|
2,657 |
|
|
|
124 |
|
|
|
4.7 |
% |
|
Ground |
|
19,689 |
|
|
|
19,015 |
|
|
|
674 |
|
|
|
3.5 |
% |
|
Total U.S. Domestic Package |
|
27,388 |
|
|
|
26,482 |
|
|
|
906 |
|
|
|
3.4 |
% |
|
International Package: |
|
|
|
|
|
|
|
|
Domestic |
|
1,804 |
|
|
|
1,799 |
|
|
|
5 |
|
|
|
0.3 |
% |
|
Export |
|
6,813 |
|
|
|
6,698 |
|
|
|
115 |
|
|
|
1.7 |
% |
|
Cargo and Other |
|
398 |
|
|
|
477 |
|
|
|
(79 |
) |
|
|
-16.6 |
% |
|
Total International Package |
|
9,015 |
|
|
|
8,974 |
|
|
|
41 |
|
|
|
0.5 |
% |
|
Supply
Chain & Freight: |
|
|
|
|
|
|
|
|
Forwarding and Logistics |
|
4,980 |
|
|
|
4,149 |
|
|
|
831 |
|
|
|
20.0 |
% |
|
Freight |
|
2,050 |
|
|
|
2,202 |
|
|
|
(152 |
) |
|
|
-6.9 |
% |
|
Other |
|
542 |
|
|
|
502 |
|
|
|
40 |
|
|
|
8.0 |
% |
|
Total Supply Chain & Freight |
|
7,572 |
|
|
|
6,853 |
|
|
|
719 |
|
|
|
10.5 |
% |
|
Consolidated |
$ |
43,975 |
|
|
$ |
42,309 |
|
|
$ |
1,666 |
|
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
Consolidated volume (in millions) |
|
3,435 |
|
|
|
3,316 |
|
|
|
119 |
|
|
|
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
Operating
weekdays |
|
192 |
|
|
|
192 |
|
|
|
- |
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
Average Daily Package Volume (in thousands): |
|
|
|
|
|
|
|
U.S.
Domestic Package: |
|
|
|
|
|
|
|
|
Next Day Air |
|
1,313 |
|
|
|
1,252 |
|
|
|
61 |
|
|
|
4.9 |
% |
|
Deferred |
|
1,195 |
|
|
|
1,163 |
|
|
|
32 |
|
|
|
2.8 |
% |
|
Ground |
|
12,652 |
|
|
|
12,208 |
|
|
|
444 |
|
|
|
3.6 |
% |
|
Total U.S. Domestic Package |
|
15,160 |
|
|
|
14,623 |
|
|
|
537 |
|
|
|
3.7 |
% |
|
International Package: |
|
|
|
|
|
|
|
|
Domestic |
|
1,576 |
|
|
|
1,534 |
|
|
|
42 |
|
|
|
2.7 |
% |
|
Export |
|
1,155 |
|
|
|
1,112 |
|
|
|
43 |
|
|
|
3.9 |
% |
|
Total International Package |
|
2,731 |
|
|
|
2,646 |
|
|
|
85 |
|
|
|
3.2 |
% |
|
Consolidated |
|
17,891 |
|
|
|
17,269 |
|
|
|
622 |
|
|
|
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
Average Revenue Per Piece: |
|
|
|
|
|
|
|
|
U.S.
Domestic Package: |
|
|
|
|
|
|
|
|
Next Day Air |
$ |
19.51 |
|
|
$ |
20.01 |
|
|
$ |
(0.50 |
) |
|
|
-2.5 |
% |
|
Deferred |
|
12.12 |
|
|
|
11.90 |
|
|
|
0.22 |
|
|
|
1.8 |
% |
|
Ground |
|
8.11 |
|
|
|
8.11 |
|
|
|
- |
|
|
|
0.0 |
% |
|
Total U.S. Domestic Package |
|
9.41 |
|
|
|
9.43 |
|
|
|
(0.02 |
) |
|
|
-0.2 |
% |
|
International Package: |
|
|
|
|
|
|
|
|
Domestic |
|
5.96 |
|
|
|
6.11 |
|
|
|
(0.15 |
) |
|
|
-2.5 |
% |
|
Export |
|
30.72 |
|
|
|
31.37 |
|
|
|
(0.65 |
) |
|
|
-2.1 |
% |
|
Total International Package |
|
16.43 |
|
|
|
16.73 |
|
|
|
(0.30 |
) |
|
|
-1.8 |
% |
|
Consolidated |
$ |
10.48 |
|
|
$ |
10.55 |
|
|
$ |
(0.07 |
) |
|
|
-0.7 |
% |
|
United Parcel Service, Inc.Supplemental
Analysis of Currency |
|
Currency Neutral Revenue Per
Piece |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
Currency Neutral |
|
|
|
September 30 |
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
% Change |
|
Currency |
|
2016* |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
|
|
Domestic |
$ |
5.96 |
|
|
$ |
6.11 |
|
|
|
-2.5 |
% |
|
$ |
0.21 |
|
|
$ |
6.17 |
|
|
|
1.0 |
% |
Export |
|
30.72 |
|
|
|
31.37 |
|
|
|
-2.1 |
% |
|
|
0.17 |
|
|
|
30.89 |
|
|
|
-1.5 |
% |
Total
International Package |
$ |
16.43 |
|
|
$ |
16.73 |
|
|
|
-1.8 |
% |
|
$ |
0.19 |
|
|
$ |
16.62 |
|
|
|
-0.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
$ |
10.48 |
|
|
$ |
10.55 |
|
|
|
-0.7 |
% |
|
$ |
0.03 |
|
|
$ |
10.51 |
|
|
|
-0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted reflect impacts for currency exchange rate
differences |
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
Currency Neutral |
|
|
|
September 30 |
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
% Change |
|
Currency |
|
2016* |
|
% Change |
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
27,388 |
|
|
$ |
26,482 |
|
|
|
3.4 |
% |
|
$ |
- |
|
|
$ |
27,388 |
|
|
|
3.4 |
% |
International Package |
|
9,015 |
|
|
|
8,974 |
|
|
|
0.5 |
% |
|
|
100 |
|
|
|
9,115 |
|
|
|
1.6 |
% |
Supply
Chain & Freight |
|
7,572 |
|
|
|
6,853 |
|
|
|
10.5 |
% |
|
|
40 |
|
|
|
7,612 |
|
|
|
11.1 |
% |
Total
revenue |
$ |
43,975 |
|
|
$ |
42,309 |
|
|
|
3.9 |
% |
|
$ |
140 |
|
|
$ |
44,115 |
|
|
|
4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted reflect impacts for currency exchange rate
differences |
|
|
|
|
|
|
|
|
|
|
|
|
Certain
prior year amounts have been reclassified to conform to the current
year presentation. |
United Parcel Service, Inc.Selected Cash Flow
Data(unaudited) |
|
Net Increase (Decrease) in Cash and Cash
Equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
|
Preliminary |
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
|
|
|
|
|
|
|
(amounts in
millions) |
|
September 30 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities |
|
$ |
5,363 |
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities |
|
|
(2,027 |
) |
|
|
|
|
|
|
|
|
Cash flows from
financing activities |
|
|
(2,781 |
) |
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
|
14 |
|
|
|
|
|
|
|
|
|
Net increase in cash
and cash equivalents |
|
$ |
569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow (non-GAAP
measure) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Preliminary |
|
|
|
|
|
|
|
|
|
|
Year-to-Date |
|
|
|
|
|
|
|
|
(amounts in
millions) |
|
September 30 |
|
|
|
|
|
|
|
|
Cash flows from
operating activities |
|
$ |
5,363 |
|
|
|
|
|
|
|
|
|
Capital
expenditures |
|
|
(1,837 |
) |
|
|
|
|
|
|
|
|
Proceeds from disposals
of PP&E |
|
|
76 |
|
|
|
|
|
|
|
|
|
Net change in finance
receivables |
|
|
4 |
|
|
|
|
|
|
|
|
|
Other investing
activities |
|
|
(55 |
) |
|
|
|
|
|
|
|
|
Free cash
flow (non-GAAP measure) |
|
$ |
3,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts are subject to
reclassification. |
|
|
|
|
|
|
|
|
|
|
Contacts:
Steve Gaut, Public Relations
404-828-8787
Scott Childress, Investor Relations
404-828-7957
United Parcel Service (NYSE:UPS)
Historical Stock Chart
From Aug 2024 to Sep 2024
United Parcel Service (NYSE:UPS)
Historical Stock Chart
From Sep 2023 to Sep 2024