UPS (NYSE:UPS) today announced earnings per share of $1.58 for the
second quarter of 2017, an increase of 11% versus the same period
in 2016. The improved earnings per share was due to 7.7%
higher revenue. All three business segments generated more
profitable product mix, improved yields and better management of
operating costs.
Consolidated
Results |
2Q 2017 |
2Q 2016 |
Revenue |
$15,750 M |
$14,629 M |
Operating profit |
$2,216 M |
$2,038 M |
Currency-neutral
operating profit* |
$2,330 M |
|
|
|
|
Diluted earnings per
share |
$1.58 |
$1.43 |
|
|
|
“UPS generated great year-over-year revenue gains in the second
quarter and we produced solid earnings per share growth, consistent
with our plans,” said David Abney, UPS chairman and CEO. “We
continue to invest in our network to expand our capabilities, our
market presence and our global reach.”
For the total company in 2Q 2017:
- Revenue increased 7.7%, currency-neutral revenue* jumped
8.9%.
- Revenue increased in all segments and major product categories,
as expanded customer demand spread across the company’s broad
product portfolio.
- Operating profit was up 8.7% to $2.2 billion driven by strong
performance in the U.S. Domestic and Supply Chain and Freight
segments.
- The favorable year-over-year 2Q EPS comparison includes
benefits of about $0.10, primarily from fuel and workers’
compensation.
- Year-to-date capital expenditures to support investment
strategies were $2.0 billion.
- This year, UPS has paid dividends of nearly $1.4 billion, an
increase of 6.4% per share over the prior year, rewarding
shareowners with continued strong dividend yield.
- As of June 30, 2017, the company has repurchased 8.4 million
shares for more than $900 million, reaffirming its commitment to
return cash to shareowners.
* See attached reconciliation of non-GAAP
currency-neutral revenue and operating profit
U.S. Domestic Segment
The Domestic segment benefitted from growing demand for
ecommerce deliveries, which fueled an 8.1% increase in revenue over
2Q 2016. The U.S. consumer increasingly prefers to shop
online and UPS is taking advantage of this trend through its unique
portfolio of delivery solutions and industry-leading
customer-facing technology.
|
2Q 2017 |
2Q 2016 |
Revenue |
$9,745
M |
$9,015
M |
Operating profit |
$1,395
M |
$1,233
M |
|
|
|
For the U.S. Domestic segment in 2Q 2017:
- Revenue improved $730 million over 2Q 2016 as ecommerce drove
higher demand for UPS Air and Ground products.
- Next Day Air and Deferred Air shipments climbed 6.4% and 11%
respectively, as customers continued to select UPS’s quick and
convenient solutions.
- Revenue per piece increased solidly across all products and was
up 3.0% in total, as the company benefited from base-rate pricing
actions and higher fuel surcharges versus 2Q 2016.
- Operating profit increased more than 13% and operating margin
expanded 60 basis points to 14.3%.
- Operating costs for ongoing initiatives including facility
construction and Saturday operations increased costs by about $35
million.
International Segment
The International segment generated solid top-line improvement
with increased demand for cross-border shipments. Export
shipments grew across all UPS regions, as customers took advantage
of UPS’s expanded portfolio, improved time-in-transit and
industry-leading customs brokerage solutions. The
International segment also made several announcements to expand its
capacity and local-market presence.
|
2Q 2017 |
2Q 2016 |
Revenue |
$3,163
M |
$3,077
M |
Operating profit |
$583
M |
$613
M |
Currency-neutral
operating profit* |
$697
M |
|
|
|
|
For the International segment in 2Q 2017:
- Operating margin was industry leading at 18.4%, and operating
profit was $583 million, including anticipated currency headwinds
of $114 million.
- Robust export growth continued at 12% led by Europe and
Asia. All regions of the world contributed to the
expansion.
- The segment reported a revenue increase of 2.8% over 2Q 2016,
up 8.3% on a currency-neutral* basis.
- During the quarter, UPS announced an exclusive partnership with
Expo 2020 Dubai, created an innovative alliance with S.F. Express –
a market-leading Chinese logistics company, and acquired Nightline
Logistics, which solidified local market leadership in
Ireland.
* See attached reconciliation of non-GAAP
currency-neutral revenue and operating profit
Supply Chain and Freight Segment
“The Supply Chain and Freight segment again showed good momentum
this quarter as the teams in each business unit are executing on
revenue quality improvements combined with structural cost
reduction programs,” Abney said. “This performance shows balanced
improvement across all business units as revenue and operating cost
initiatives strengthen core performance.”
|
2Q 2017 |
2Q 2016 |
Revenue |
$2,842
M |
$2,537
M |
Operating profit |
$238
M |
$192
M |
|
|
|
- Revenue increased 12% over 2Q 2016 as the company deeply
aligned with preferred customers, strengthened revenue management
initiatives and market conditions improved across all business
units.
- Tonnage gains in Freight Forwarding and UPS Freight contributed
to improved top-line results as economic conditions across
non-retail markets continue to strengthen.
- Retail inventory replenishment and improved aerospace sector
performance enhanced the Distribution unit results.
- Coyote Logistics delivered double-digit revenue growth as the
unit continued to gain market share.
- All business units contributed to segment operating profit
expansion of 24%, which included a one-time benefit.
Outlook
The company provides guidance on an adjusted (non-GAAP) basis
because it is not possible to predict or provide a reconciliation
reflecting the impact of future pension mark-to-market adjustments,
which would be included in reported (GAAP) results and could be
material.
“Second quarter results were in line with our expectations and
we are pleased with the progress on our strategic initiatives,”
said Richard Peretz, UPS chief financial officer. “Looking at
the second half of the year, our core business performance will
continue to produce solid results.”
The company’s full-year 2017 adjusted earnings per share
guidance includes the following:
- Second half currency headwinds and continued costs for
strategic initiatives will weigh on results.
- One less operating day in 3Q 2017 compared to 3Q 2016 will
contribute to relatively flat diluted earnings per share (EPS)
growth.
- The tax rate is expected to be 35% for the second half of 2017
and excludes 4Q 2016 tax savings of approximately $0.05 per
share.
UPS reaffirms 2017 adjusted diluted EPS guidance to be between
$5.80 and $6.10, which includes about $400 million, or $0.30 per
share of pre-tax currency headwinds.
Conference Call
Information
UPS CEO David Abney and CFO Richard Peretz will discuss
second-quarter results with investors and analysts during a
conference call at 8:30 a.m. ET, July 27, 2017. That call is
open to others through a live Webcast. To access the call, go
to www.investors.ups.com and click on “Earnings Webcast.”
About UPS
UPS (NYSE:UPS) is a global leader in logistics, offering a broad
range of solutions including transporting packages and freight;
facilitating international trade, and deploying 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 or
pressroom.ups.com and its corporate blog can be
found at longitudes.ups.com. To get UPS news
direct, follow @UPS_News on
Twitter.
Forward-Looking Statements
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.
Reconciliation of GAAP and non-GAAP Financial
Measures
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 periodically disclose
free cash flow as well as currency-neutral revenue, revenue per
piece and operating profit.
We believe that these non-GAAP measures provide additional
meaningful information to assist users of our financial statements
in understanding our financial results and assessing our ongoing
performance because they exclude items that may not be indicative
of, or are unrelated to, our underlying operations and may provide
a useful baseline for analyzing trends in our underlying
businesses. Management uses these non-GAAP financial measures in
making financial, operating and planning decisions. We also use
certain of these measures for the determination of incentive
compensation award results.
Non-GAAP financial measures should be considered in addition to,
and not as an alternative for, our reported results prepared in
accordance with GAAP. Our non-GAAP financial information does not
represent a comprehensive basis of accounting. Therefore, our
non-GAAP financial information may not be comparable to similarly
titled measures reported by other companies.
Currency-Neutral Revenue, Revenue per Piece and Operating
Profit
We supplement the reporting of our revenue, revenue per piece
and operating profit with similar non-GAAP measures that exclude
the period-over-period impact of foreign currency exchange rate
changes and hedging activities. We believe currency-neutral
revenue, revenue per piece and operating profit information allows
users of our financial statements to understand growth trends in
our products and results. We evaluate the performance of our
International Package and Supply Chain and Freight businesses on a
currency-neutral basis.
Currency-neutral revenue, revenue per piece and operating profit
are calculated by dividing current period reported U.S. dollar
revenue, revenue per piece and operating profit by the current
period average exchange rates to derive current period local
currency revenue, revenue per piece and operating profit. The
derived current period local currency revenue, revenue per piece
and operating profit are then multiplied by the average foreign
exchange rates used to translate the comparable results for each
month in the prior year period (including the period over period
impact of foreign currency revenue hedging activities). The
difference between the current period reported U.S. dollar revenue,
revenue per piece and operating profit and the derived current
period U.S. dollar revenue, revenue per piece and operating profit
is the period over period impact of currency fluctuations.
|
Reconciliation of GAAP and non-GAAP Revenue,
Revenue Per Piece and Operating Profit |
(in millions, except Per Piece
amounts): |
|
Three Months Ended June 30 |
|
|
|
|
|
|
2017 As-Reported (GAAP) |
2016 As-Reported (GAAP) |
% Change (GAAP) |
Currency Impact |
2017 Currency-Neutral (non-GAAP) |
% Change (non-GAAP) |
Average Revenue
Per Piece: |
|
|
|
|
|
|
International Package: |
|
|
|
|
|
|
Domestic |
$ |
5.99 |
$ |
6.07 |
-1.3 |
% |
$ |
0.36 |
$ |
6.35 |
4.6 |
% |
Export |
|
29.22 |
|
31.36 |
-6.8 |
% |
|
1.60 |
|
30.82 |
-1.7 |
% |
Total
International Package |
|
16.31 |
|
16.70 |
-2.3 |
% |
|
0.91 |
|
17.22 |
3.1 |
% |
|
|
|
|
|
|
|
Consolidated |
$ |
10.75 |
$ |
10.57 |
1.7 |
% |
$ |
0.15 |
$ |
10.90 |
3.1 |
% |
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
9,745 |
$ |
9,015 |
8.1 |
% |
$ |
- |
$ |
9,745 |
8.1 |
% |
International Package |
|
3,163 |
|
3,077 |
2.8 |
% |
|
170 |
|
3,333 |
8.3 |
% |
Supply
Chain & Freight |
|
2,842 |
|
2,537 |
12.0 |
% |
|
14 |
|
2,856 |
12.6 |
% |
Total
revenue |
$ |
15,750 |
$ |
14,629 |
7.7 |
% |
$ |
184 |
$ |
15,934 |
8.9 |
% |
|
|
|
|
|
|
|
Operating
Profit: |
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
1,395 |
$ |
1,233 |
13.1 |
% |
$ |
- |
$ |
1,395 |
13.1 |
% |
International Package |
|
583 |
|
613 |
-4.9 |
% |
|
114 |
|
697 |
13.7 |
% |
Supply
Chain & Freight |
|
238 |
|
192 |
24.0 |
% |
|
- |
|
238 |
24.0 |
% |
Total
operating profit |
$ |
2,216 |
$ |
2,038 |
8.7 |
% |
$ |
114 |
$ |
2,330 |
14.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30 |
|
|
|
|
|
|
2017 As-Reported (GAAP) |
2016 As-Reported (GAAP) |
% Change (GAAP) |
Currency Impact |
2017 Currency-Neutral (non-GAAP) |
% Change (non-GAAP) |
Average Revenue
Per Piece: |
|
|
|
|
|
|
International Package: |
|
|
|
|
|
|
Domestic |
$ |
5.85 |
$ |
5.99 |
-2.3 |
% |
$ |
0.32 |
$ |
6.17 |
3.0 |
% |
Export |
|
28.67 |
|
30.90 |
-7.2 |
% |
|
1.63 |
|
30.30 |
-1.9 |
% |
Total
International Package |
|
15.88 |
|
16.54 |
-4.0 |
% |
|
0.90 |
|
16.78 |
1.5 |
% |
|
|
|
|
|
|
|
Consolidated |
$ |
10.63 |
$ |
10.48 |
1.4 |
% |
$ |
0.15 |
$ |
10.78 |
2.9 |
% |
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
19,280 |
$ |
18,099 |
6.5 |
% |
$ |
- |
$ |
19,280 |
6.5 |
% |
International Package |
|
6,221 |
|
5,991 |
3.8 |
% |
|
340 |
|
6,561 |
9.5 |
% |
Supply
Chain & Freight |
|
5,564 |
|
4,957 |
12.2 |
% |
|
24 |
|
5,588 |
12.7 |
% |
Total
revenue |
$ |
31,065 |
$ |
29,047 |
6.9 |
% |
$ |
364 |
$ |
31,429 |
8.2 |
% |
|
|
|
|
|
|
|
Operating
Profit: |
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
2,471 |
$ |
2,335 |
5.8 |
% |
$ |
- |
$ |
2,471 |
5.8 |
% |
International Package |
|
1,112 |
|
1,187 |
-6.3 |
% |
|
233 |
|
1,345 |
13.3 |
% |
Supply
Chain & Freight |
|
417 |
|
339 |
23.0 |
% |
|
1 |
|
418 |
23.3 |
% |
Total
operating profit |
$ |
4,000 |
$ |
3,861 |
3.6 |
% |
$ |
234 |
$ |
4,234 |
9.7 |
% |
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Selected Financial Data - Second
Quarter |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
June 30 |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Change |
|
% Change |
|
|
(amounts
in millions, except per share data) |
|
|
|
|
|
|
|
|
|
Statement of
Income Data: |
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
9,745 |
|
|
$ |
9,015 |
|
|
$ |
730 |
|
|
8.1 |
% |
|
|
International Package |
|
3,163 |
|
|
|
3,077 |
|
|
|
86 |
|
|
2.8 |
% |
|
|
Supply
Chain & Freight |
|
2,842 |
|
|
|
2,537 |
|
|
|
305 |
|
|
12.0 |
% |
|
|
Total
revenue |
|
15,750 |
|
|
|
14,629 |
|
|
|
1,121 |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
8,105 |
|
|
|
7,738 |
|
|
|
367 |
|
|
4.7 |
% |
|
|
Other |
|
5,429 |
|
|
|
4,853 |
|
|
|
576 |
|
|
11.9 |
% |
|
|
Total
operating expenses |
|
13,534 |
|
|
|
12,591 |
|
|
|
943 |
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
|
1,395 |
|
|
|
1,233 |
|
|
|
162 |
|
|
13.1 |
% |
|
|
International Package |
|
583 |
|
|
|
613 |
|
|
|
(30 |
) |
|
-4.9 |
% |
|
|
Supply
Chain & Freight |
|
238 |
|
|
|
192 |
|
|
|
46 |
|
|
24.0 |
% |
|
|
Total
operating profit |
|
2,216 |
|
|
|
2,038 |
|
|
|
178 |
|
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
Investment income and other |
|
14 |
|
|
|
8 |
|
|
|
6 |
|
|
75.0 |
% |
|
|
Interest
expense |
|
(111 |
) |
|
|
(94 |
) |
|
|
(17 |
) |
|
18.1 |
% |
|
|
Total
other income (expense) |
|
(97 |
) |
|
|
(86 |
) |
|
|
(11 |
) |
|
12.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
2,119 |
|
|
|
1,952 |
|
|
|
167 |
|
|
8.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
735 |
|
|
|
683 |
|
|
|
52 |
|
|
7.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
1,384 |
|
|
$ |
1,269 |
|
|
$ |
115 |
|
|
9.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net income as a
percentage of revenue |
|
8.8 |
% |
|
|
8.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
1.59 |
|
|
$ |
1.43 |
|
|
$ |
0.16 |
|
|
11.2 |
% |
|
|
Diluted
earnings per share |
$ |
1.58 |
|
|
$ |
1.43 |
|
|
$ |
0.15 |
|
|
10.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
872 |
|
|
|
886 |
|
|
|
(14 |
) |
|
-1.6 |
% |
|
|
Diluted |
|
876 |
|
|
|
890 |
|
|
|
(14 |
) |
|
-1.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Selected Operating Data - Second
Quarter |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
June 30 |
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
Next Day
Air |
$ |
1,752 |
|
$ |
1,637 |
|
$ |
115 |
|
|
7.0 |
% |
|
|
Deferred |
|
1,020 |
|
|
899 |
|
|
121 |
|
|
13.5 |
% |
|
|
Ground |
|
6,973 |
|
|
6,479 |
|
|
494 |
|
|
7.6 |
% |
|
|
Total
U.S. Domestic Package |
|
9,745 |
|
|
9,015 |
|
|
730 |
|
|
8.1 |
% |
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
Domestic |
|
621 |
|
|
621 |
|
|
- |
|
|
0.0 |
% |
|
|
Export |
|
2,420 |
|
|
2,326 |
|
|
94 |
|
|
4.0 |
% |
|
|
Cargo and
Other |
|
122 |
|
|
130 |
|
|
(8 |
) |
|
-6.2 |
% |
|
|
Total
International Package |
|
3,163 |
|
|
3,077 |
|
|
86 |
|
|
2.8 |
% |
|
|
Supply Chain &
Freight: |
|
|
|
|
|
|
|
|
|
Forwarding and Logistics |
|
1,893 |
|
|
1,659 |
|
|
234 |
|
|
14.1 |
% |
|
|
Freight |
|
753 |
|
|
693 |
|
|
60 |
|
|
8.7 |
% |
|
|
Other |
|
196 |
|
|
185 |
|
|
11 |
|
|
6.0 |
% |
|
|
Total
Supply Chain & Freight |
|
2,842 |
|
|
2,537 |
|
|
305 |
|
|
12.0 |
% |
|
|
Consolidated |
$ |
15,750 |
|
$ |
14,629 |
|
$ |
1,121 |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated volume (in
millions) |
|
1,189 |
|
|
1,132 |
|
|
57 |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays |
|
64 |
|
|
64 |
|
|
- |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Package Volume (in thousands): |
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
Next Day
Air |
|
1,395 |
|
|
1,311 |
|
|
84 |
|
|
6.4 |
% |
|
|
Deferred |
|
1,253 |
|
|
1,129 |
|
|
124 |
|
|
11.0 |
% |
|
|
Ground |
|
13,019 |
|
|
12,489 |
|
|
530 |
|
|
4.2 |
% |
|
|
Total
U.S. Domestic Package |
|
15,667 |
|
|
14,929 |
|
|
738 |
|
|
4.9 |
% |
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
Domestic |
|
1,619 |
|
|
1,599 |
|
|
20 |
|
|
1.3 |
% |
|
|
Export |
|
1,294 |
|
|
1,159 |
|
|
135 |
|
|
11.6 |
% |
|
|
Total
International Package |
|
2,913 |
|
|
2,758 |
|
|
155 |
|
|
5.6 |
% |
|
|
Consolidated |
|
18,580 |
|
|
17,687 |
|
|
893 |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
Next Day
Air |
$ |
19.62 |
|
$ |
19.51 |
|
$ |
0.11 |
|
|
0.6 |
% |
|
|
Deferred |
|
12.72 |
|
|
12.44 |
|
|
0.28 |
|
|
2.3 |
% |
|
|
Ground |
|
8.37 |
|
|
8.11 |
|
|
0.26 |
|
|
3.2 |
% |
|
|
Total
U.S. Domestic Package |
|
9.72 |
|
|
9.44 |
|
|
0.28 |
|
|
3.0 |
% |
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
Domestic |
|
5.99 |
|
|
6.07 |
|
|
(0.08 |
) |
|
-1.3 |
% |
|
|
Export |
|
29.22 |
|
|
31.36 |
|
|
(2.14 |
) |
|
-6.8 |
% |
|
|
Total
International Package |
|
16.31 |
|
|
16.70 |
|
|
(0.39 |
) |
|
-2.3 |
% |
|
|
Consolidated |
$ |
10.75 |
|
$ |
10.57 |
|
$ |
0.18 |
|
|
1.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Supplemental Analysis of Currency and UPS
Freight |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue Per
Piece |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30 |
|
|
|
|
|
Currency Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
$ |
5.99 |
|
$ |
6.07 |
|
|
-1.3 |
% |
|
$ |
0.36 |
|
|
$ |
6.35 |
|
4.6 |
% |
|
|
|
Export |
|
29.22 |
|
|
31.36 |
|
|
-6.8 |
% |
|
|
1.60 |
|
|
|
30.82 |
|
-1.7 |
% |
|
|
|
Total
International Package |
$ |
16.31 |
|
$ |
16.70 |
|
|
-2.3 |
% |
|
$ |
0.91 |
|
|
$ |
17.22 |
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
$ |
10.75 |
|
$ |
10.57 |
|
|
1.7 |
% |
|
$ |
0.15 |
|
|
$ |
10.90 |
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30 |
|
|
|
|
|
Currency Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
9,745 |
|
$ |
9,015 |
|
|
8.1 |
% |
|
$ |
- |
|
|
$ |
9,745 |
|
8.1 |
% |
|
|
|
International Package |
|
3,163 |
|
|
3,077 |
|
|
2.8 |
% |
|
|
170 |
|
|
|
3,333 |
|
8.3 |
% |
|
|
|
Supply
Chain & Freight |
|
2,842 |
|
|
2,537 |
|
|
12.0 |
% |
|
|
14 |
|
|
|
2,856 |
|
12.6 |
% |
|
|
|
Total
revenue |
$ |
15,750 |
|
$ |
14,629 |
|
|
7.7 |
% |
|
$ |
184 |
|
|
$ |
15,934 |
|
8.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Operating
Profit |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30 |
|
|
|
|
|
Currency Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
Operating
profit (in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
1,395 |
|
$ |
1,233 |
|
|
13.1 |
% |
|
$ |
- |
|
|
$ |
1,395 |
|
13.1 |
% |
|
|
|
International Package |
|
583 |
|
|
613 |
|
|
-4.9 |
% |
|
|
114 |
|
|
|
697 |
|
13.7 |
% |
|
|
|
Supply
Chain & Freight |
|
238 |
|
|
192 |
|
|
24.0 |
% |
|
|
- |
|
|
|
238 |
|
24.0 |
% |
|
|
|
Total
operating profit |
$ |
2,216 |
|
$ |
2,038 |
|
|
8.7 |
% |
|
$ |
114 |
|
|
$ |
2,330 |
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight Selected Operating Data - Second
Quarter |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
June 30 |
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
LTL revenue (in
millions) |
$ |
652 |
|
$ |
600 |
|
$ |
52 |
|
|
|
8.7 |
% |
|
|
|
|
|
|
|
LTL revenue per LTL
hundredweight |
$ |
23.62 |
|
$ |
23.47 |
|
$ |
0.15 |
|
|
|
0.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL shipments (in
thousands) |
|
2,633 |
|
|
2,540 |
|
|
93 |
|
|
|
3.7 |
% |
|
|
|
|
|
|
|
LTL shipments per day
(in thousands) |
|
41.1 |
|
|
39.7 |
|
|
1.4 |
|
|
|
3.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL gross weight hauled
(in millions of pounds) |
|
2,762 |
|
|
2,556 |
|
|
206 |
|
|
|
8.1 |
% |
|
|
|
|
|
|
|
LTL weight per shipment
(in pounds) |
|
1,049 |
|
|
1,006 |
|
|
43 |
|
|
|
4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays |
|
64 |
|
|
64 |
|
|
- |
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Detail of Other Operating Expenses - Second
Quarter |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
Three Months Ended |
|
|
|
|
|
|
|
June 30 |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
Repairs and
maintenance |
$ |
392 |
|
$ |
383 |
|
$ |
9 |
|
2.3 |
% |
|
|
|
Depreciation and
amortization |
|
562 |
|
|
555 |
|
|
7 |
|
1.3 |
% |
|
|
|
Purchased
transportation |
|
2,443 |
|
|
2,070 |
|
|
373 |
|
18.0 |
% |
|
|
|
Fuel |
|
616 |
|
|
505 |
|
|
111 |
|
22.0 |
% |
|
|
|
Other occupancy |
|
264 |
|
|
245 |
|
|
19 |
|
7.8 |
% |
|
|
|
Other expenses |
|
1,152 |
|
|
1,095 |
|
|
57 |
|
5.2 |
% |
|
|
|
Total other operating
expenses |
$ |
5,429 |
|
$ |
4,853 |
|
$ |
576 |
|
11.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share and Share Data - Second
Quarter |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
(amounts
in millions, except per share data) |
|
|
June 30 |
|
|
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
$ |
1,384 |
|
$ |
1,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares |
|
|
|
867 |
|
|
881 |
|
|
|
|
|
Deferred
compensation obligations |
|
|
|
1 |
|
|
1 |
|
|
|
|
|
Vested
portion of restricted units |
|
|
|
4 |
|
|
4 |
|
|
|
|
|
Denominator for basic
earnings per share |
|
|
|
872 |
|
|
886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities: |
|
|
|
|
|
|
|
|
|
|
Restricted units |
|
|
|
3 |
|
|
3 |
|
|
|
|
|
Stock
options |
|
|
|
1 |
|
|
1 |
|
|
|
|
|
Denominator for diluted
earnings per share |
|
|
|
876 |
|
|
890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
|
$ |
1.59 |
|
$ |
1.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
|
$ |
1.58 |
|
$ |
1.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detail of shares outstanding as of June 30,
2017: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A shares |
|
|
|
177 |
|
|
|
|
|
|
|
Class B shares |
|
|
|
688 |
|
|
|
|
|
|
|
Total
shares outstanding |
|
|
|
865 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Selected Financial Data - Year to
Date |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
June 30 |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Change |
|
% Change |
|
|
(amounts
in millions, except per share data) |
|
|
|
|
|
|
|
|
|
Statement of
Income Data: |
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
19,280 |
|
|
$ |
18,099 |
|
|
$ |
1,181 |
|
|
6.5 |
% |
|
|
International Package |
|
6,221 |
|
|
|
5,991 |
|
|
|
230 |
|
|
3.8 |
% |
|
|
Supply
Chain & Freight |
|
5,564 |
|
|
|
4,957 |
|
|
|
607 |
|
|
12.2 |
% |
|
|
Total
revenue |
|
31,065 |
|
|
|
29,047 |
|
|
|
2,018 |
|
|
6.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
16,236 |
|
|
|
15,591 |
|
|
|
645 |
|
|
4.1 |
% |
|
|
Other |
|
10,829 |
|
|
|
9,595 |
|
|
|
1,234 |
|
|
12.9 |
% |
|
|
Total
operating expenses |
|
27,065 |
|
|
|
25,186 |
|
|
|
1,879 |
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
|
2,471 |
|
|
|
2,335 |
|
|
|
136 |
|
|
5.8 |
% |
|
|
International Package |
|
1,112 |
|
|
|
1,187 |
|
|
|
(75 |
) |
|
-6.3 |
% |
|
|
Supply
Chain & Freight |
|
417 |
|
|
|
339 |
|
|
|
78 |
|
|
23.0 |
% |
|
|
Total
operating profit |
|
4,000 |
|
|
|
3,861 |
|
|
|
139 |
|
|
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
Investment income and other |
|
29 |
|
|
|
25 |
|
|
|
4 |
|
|
16.0 |
% |
|
|
Interest
expense |
|
(213 |
) |
|
|
(187 |
) |
|
|
(26 |
) |
|
13.9 |
% |
|
|
Total
other income (expense) |
|
(184 |
) |
|
|
(162 |
) |
|
|
(22 |
) |
|
13.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
3,816 |
|
|
|
3,699 |
|
|
|
117 |
|
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
1,274 |
|
|
|
1,299 |
|
|
|
(25 |
) |
|
-1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
2,542 |
|
|
$ |
2,400 |
|
|
$ |
142 |
|
|
5.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net income as a
percentage of revenue |
|
8.2 |
% |
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
2.91 |
|
|
$ |
2.71 |
|
|
$ |
0.20 |
|
|
7.4 |
% |
|
|
Diluted
earnings per share |
$ |
2.90 |
|
|
$ |
2.69 |
|
|
$ |
0.21 |
|
|
7.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
873 |
|
|
|
887 |
|
|
|
(14 |
) |
|
-1.6 |
% |
|
|
Diluted |
|
877 |
|
|
|
892 |
|
|
|
(15 |
) |
|
-1.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
|
Selected Operating Data - Year to
Date |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
June 30 |
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
Next Day
Air |
$ |
3,416 |
|
$ |
3,212 |
|
$ |
204 |
|
|
6.4 |
% |
|
|
Deferred |
|
1,990 |
|
|
1,814 |
|
|
176 |
|
|
9.7 |
% |
|
|
Ground |
|
13,874 |
|
|
13,073 |
|
|
801 |
|
|
6.1 |
% |
|
|
Total
U.S. Domestic Package |
|
19,280 |
|
|
18,099 |
|
|
1,181 |
|
|
6.5 |
% |
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
Domestic |
|
1,233 |
|
|
1,195 |
|
|
38 |
|
|
3.2 |
% |
|
|
Export |
|
4,742 |
|
|
4,529 |
|
|
213 |
|
|
4.7 |
% |
|
|
Cargo and
Other |
|
246 |
|
|
267 |
|
|
(21 |
) |
|
-7.9 |
% |
|
|
Total
International Package |
|
6,221 |
|
|
5,991 |
|
|
230 |
|
|
3.8 |
% |
|
|
Supply Chain &
Freight: |
|
|
|
|
|
|
|
|
|
Forwarding and Logistics |
|
3,720 |
|
|
3,245 |
|
|
475 |
|
|
14.6 |
% |
|
|
Freight |
|
1,462 |
|
|
1,349 |
|
|
113 |
|
|
8.4 |
% |
|
|
Other |
|
382 |
|
|
363 |
|
|
19 |
|
|
5.2 |
% |
|
|
Total
Supply Chain & Freight |
|
5,564 |
|
|
4,957 |
|
|
607 |
|
|
12.2 |
% |
|
|
Consolidated |
$ |
31,065 |
|
$ |
29,047 |
|
$ |
2,018 |
|
|
6.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated volume (in
millions) |
|
2,376 |
|
|
2,273 |
|
|
103 |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays |
|
128 |
|
|
128 |
|
|
- |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Package Volume (in thousands): |
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
Next Day
Air |
|
1,356 |
|
|
1,289 |
|
|
67 |
|
|
5.2 |
% |
|
|
Deferred |
|
1,249 |
|
|
1,163 |
|
|
86 |
|
|
7.4 |
% |
|
|
Ground |
|
13,016 |
|
|
12,606 |
|
|
410 |
|
|
3.3 |
% |
|
|
Total
U.S. Domestic Package |
|
15,621 |
|
|
15,058 |
|
|
563 |
|
|
3.7 |
% |
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
Domestic |
|
1,648 |
|
|
1,558 |
|
|
90 |
|
|
5.8 |
% |
|
|
Export |
|
1,292 |
|
|
1,145 |
|
|
147 |
|
|
12.8 |
% |
|
|
Total
International Package |
|
2,940 |
|
|
2,703 |
|
|
237 |
|
|
8.8 |
% |
|
|
Consolidated |
|
18,561 |
|
|
17,761 |
|
|
800 |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
Next Day
Air |
$ |
19.68 |
|
$ |
19.47 |
|
$ |
0.21 |
|
|
1.1 |
% |
|
|
Deferred |
|
12.45 |
|
|
12.19 |
|
|
0.26 |
|
|
2.1 |
% |
|
|
Ground |
|
8.33 |
|
|
8.10 |
|
|
0.23 |
|
|
2.8 |
% |
|
|
Total
U.S. Domestic Package |
|
9.64 |
|
|
9.39 |
|
|
0.25 |
|
|
2.7 |
% |
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
Domestic |
|
5.85 |
|
|
5.99 |
|
|
(0.14 |
) |
|
-2.3 |
% |
|
|
Export |
|
28.67 |
|
|
30.90 |
|
|
(2.23 |
) |
|
-7.2 |
% |
|
|
Total
International Package |
|
15.88 |
|
|
16.54 |
|
|
(0.66 |
) |
|
-4.0 |
% |
|
|
Consolidated |
$ |
10.63 |
|
$ |
10.48 |
|
$ |
0.15 |
|
|
1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Supplemental Analysis of Currency and UPS
Freight |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue Per
Piece |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
Currency |
|
|
|
|
|
|
June 30 |
|
|
|
|
|
Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
$ |
5.85 |
|
$ |
5.99 |
|
|
-2.3 |
% |
|
$ |
0.32 |
|
|
$ |
6.17 |
|
3.0 |
% |
|
|
|
Export |
|
28.67 |
|
|
30.90 |
|
|
-7.2 |
% |
|
|
1.63 |
|
|
|
30.30 |
|
-1.9 |
% |
|
|
|
Total
International Package |
$ |
15.88 |
|
$ |
16.54 |
|
|
-4.0 |
% |
|
$ |
0.90 |
|
|
$ |
16.78 |
|
1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
$ |
10.63 |
|
$ |
10.48 |
|
|
1.4 |
% |
|
$ |
0.15 |
|
|
$ |
10.78 |
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
Currency |
|
|
|
|
|
|
June 30 |
|
|
|
|
|
Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
19,280 |
|
$ |
18,099 |
|
|
6.5 |
% |
|
$ |
- |
|
|
$ |
19,280 |
|
6.5 |
% |
|
|
|
International Package |
|
6,221 |
|
|
5,991 |
|
|
3.8 |
% |
|
|
340 |
|
|
|
6,561 |
|
9.5 |
% |
|
|
|
Supply
Chain & Freight |
|
5,564 |
|
|
4,957 |
|
|
12.2 |
% |
|
|
24 |
|
|
|
5,588 |
|
12.7 |
% |
|
|
|
Total
revenue |
$ |
31,065 |
|
$ |
29,047 |
|
|
6.9 |
% |
|
$ |
364 |
|
|
$ |
31,429 |
|
8.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Operating
Profit |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
Currency |
|
|
|
|
|
|
June 30 |
|
|
|
|
|
Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
Operating
profit (in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
2,471 |
|
$ |
2,335 |
|
|
5.8 |
% |
|
$ |
- |
|
|
$ |
2,471 |
|
5.8 |
% |
|
|
|
International Package |
|
1,112 |
|
|
1,187 |
|
|
-6.3 |
% |
|
|
233 |
|
|
|
1,345 |
|
13.3 |
% |
|
|
|
Supply
Chain & Freight |
|
417 |
|
|
339 |
|
|
23.0 |
% |
|
|
1 |
|
|
|
418 |
|
23.3 |
% |
|
|
|
Total
operating profit |
$ |
4,000 |
|
$ |
3,861 |
|
|
3.6 |
% |
|
$ |
234 |
|
|
$ |
4,234 |
|
9.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Freight Selected Operating Data - Year to
Date |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
June 30 |
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
LTL revenue (in
millions) |
$ |
1,270 |
|
$ |
1,164 |
|
$ |
106 |
|
|
|
9.1 |
% |
|
|
|
|
|
|
|
LTL revenue per LTL
hundredweight |
$ |
23.60 |
|
$ |
23.36 |
|
$ |
0.24 |
|
|
|
1.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL shipments (in
thousands) |
|
5,150 |
|
|
4,956 |
|
|
194 |
|
|
|
3.9 |
% |
|
|
|
|
|
|
|
LTL shipments per day
(in thousands) |
|
40.2 |
|
|
38.7 |
|
|
1.5 |
|
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL gross weight hauled
(in millions of pounds) |
|
5,381 |
|
|
4,982 |
|
|
399 |
|
|
|
8.0 |
% |
|
|
|
|
|
|
|
LTL weight per shipment
(in pounds) |
|
1,045 |
|
|
1,005 |
|
|
40 |
|
|
|
4.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays |
|
128 |
|
|
128 |
|
|
- |
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
Detail of Other Operating Expenses - Year to
Date |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
Six Months Ended |
|
|
|
|
|
|
|
|
June 30 |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
Repairs and
Maintenance |
$ |
782 |
|
$ |
764 |
|
$ |
18 |
|
2.4 |
% |
|
|
|
Depreciation and
Amortization |
|
1,116 |
|
|
1,107 |
|
|
9 |
|
0.8 |
% |
|
|
|
Purchased
Transportation |
|
4,809 |
|
|
4,094 |
|
|
715 |
|
17.5 |
% |
|
|
|
Fuel |
|
1,237 |
|
|
939 |
|
|
298 |
|
31.7 |
% |
|
|
|
Other Occupancy |
|
563 |
|
|
514 |
|
|
49 |
|
9.5 |
% |
|
|
|
Other Expenses |
|
2,322 |
|
|
2,177 |
|
|
145 |
|
6.7 |
% |
|
|
|
Total Other Operating
Expenses |
$ |
10,829 |
|
$ |
9,595 |
|
$ |
1,234 |
|
12.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share and Share Data - Year to
Date |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
|
(amounts
in millions, except per share data) |
|
|
June 30 |
|
|
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
$ |
2,542 |
|
$ |
2,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding |
|
|
|
868 |
|
|
883 |
|
|
|
|
|
Deferred
compensation arrangements |
|
|
|
1 |
|
|
1 |
|
|
|
|
|
Vested
portion of restricted shares |
|
|
|
4 |
|
|
3 |
|
|
|
|
|
Denominator for basic
earnings per share |
|
|
|
873 |
|
|
887 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities: |
|
|
|
|
|
|
|
|
|
|
Restricted shares |
|
|
|
3 |
|
|
4 |
|
|
|
|
|
Stock
options |
|
|
|
1 |
|
|
1 |
|
|
|
|
|
Denominator for diluted
earnings per share |
|
|
|
877 |
|
|
892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
|
$ |
2.91 |
|
$ |
2.71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
|
$ |
2.90 |
|
$ |
2.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Consolidated Balance Sheets - June 30, 2017
and December 31, 2016 |
(unaudited) |
|
|
|
|
|
|
(amounts in millions) |
|
June 30, |
|
December 31, |
|
|
|
2017 |
|
|
2016 |
|
|
ASSETS |
|
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
|
Cash and
marketable securities |
|
$ |
4,604 |
|
$ |
4,567 |
|
|
Other
current assets |
|
|
7,790 |
|
|
9,282 |
|
|
Total
Current Assets |
|
|
12,394 |
|
|
13,849 |
|
|
Property,
Plant and Equipment |
|
|
45,588 |
|
|
43,674 |
|
|
Less
accumulated depreciation and amortization |
|
|
25,747 |
|
|
24,874 |
|
|
|
19,841 |
|
|
18,800 |
|
|
Other
Assets |
|
|
7,489 |
|
|
7,728 |
|
|
$ |
39,724 |
|
$ |
40,377 |
|
|
|
|
|
|
|
LIABILITIES
AND SHAREOWNERS' EQUITY |
|
|
|
|
|
|
Current
Liabilities |
|
$ |
11,082 |
|
$ |
11,730 |
|
|
Long-Term
Debt |
|
|
14,257 |
|
|
12,394 |
|
|
Pension and
Postretirement Benefit Obligations |
|
|
9,981 |
|
|
12,694 |
|
|
Deferred
Taxes, Credits and Other Liabilities |
|
|
3,130 |
|
|
3,130 |
|
|
Shareowners' Equity |
|
|
1,274 |
|
|
429 |
|
|
$ |
39,724 |
|
$ |
40,377 |
|
|
|
|
|
|
|
Amounts are
subject to reclassification. |
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
|
Selected Cash Flow Data |
|
(unaudited) |
|
|
|
|
Net Increase (Decrease) in Cash and Cash
Equivalents |
|
|
|
|
|
Preliminary |
|
|
Year-to-Date |
|
(amounts in
millions) |
|
June 30 |
|
|
Cash flows from
operating activities |
|
$ |
2,621 |
|
|
|
Cash flows used in
investing activities |
|
|
(2,027 |
) |
|
Cash flows used in
financing activities |
|
|
(556 |
) |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
|
30 |
|
|
Net increase in cash
and cash equivalents |
|
$ |
68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow (non-GAAP
measure) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preliminary |
|
|
Year-to-Date |
|
(amounts in
millions) |
|
June 30 |
|
|
Cash flows from
operating activities |
|
$ |
2,621 |
|
|
|
Capital
expenditures |
|
|
(2,009 |
) |
|
|
Proceeds from disposals
of PP&E |
|
|
14 |
|
|
|
Net change in finance
receivables |
|
|
(16 |
) |
|
|
Other investing
activities |
|
|
14 |
|
|
|
Free cash flow (non-GAAP measure) |
$ |
624 |
|
|
|
|
|
|
Amounts
are subject to reclassification. |
United Parcel Service, Inc. |
|
Aircraft Fleet - As of June 30,
2017 |
|
(unaudited) |
|
|
|
|
|
|
|
|
Owned and |
Leases & Charters |
|
|
|
Description |
Capital Leases |
from Others |
On Order |
Under Option |
|
Operating: |
|
|
|
|
|
Boeing 757-200 |
75 |
- |
- |
- |
|
Boeing 767-300 |
59 |
- |
- |
- |
|
Boeing 767-300BCF |
1 |
- |
2 |
- |
|
Airbus A300-600 |
52 |
- |
- |
- |
|
Boeing MD-11* |
38 |
- |
- |
- |
|
Boeing 747-400F |
11 |
- |
- |
- |
|
Boeing 747-400BCF |
2 |
- |
- |
- |
|
Boeing 747-8F |
- |
- |
14 |
14 |
|
Other |
- |
302 |
- |
- |
|
|
|
|
|
|
|
Total |
238 |
302 |
16 |
14 |
|
|
|
|
|
|
|
* One
Boeing MD-11 not in operation pending disposal |
|
|
|
|
|
|
|
Contacts:
Steve Gaut, Public Relations
404-828-8787
Scott Childress, Investor Relations
404-828-7957
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