UPS (NYSE:UPS) today announced that first-quarter 2018 earnings per
share rose 17% to $1.55, led by double-digit operating profit
growth in both International and Supply Chain and Freight segments.
“Top-line growth in our business was strong across all business
segments, reflecting the power of UPS’s global solutions and
continued favorable economic conditions,” said UPS Chairman and CEO
David Abney. “When combined with our transformation initiatives,
these favorable trends position UPS for strong returns going
forward.”
Consolidated
Results |
1Q 2018 |
1Q 2017 |
% Change |
Revenue |
$17,113
M |
$15,510
M |
10 |
% |
Net income |
$1,345
M |
$1,166
M |
15 |
% |
Diluted earnings per
share |
$1.55 |
$1.33 |
17 |
% |
For the total company in 1Q 2018:
- Total revenue increased 10% to $17.1 billion, on strong demand
for UPS solutions.
- Average yield increased by 4.3%, led by International and U.S.
Deferred Air products.
- UPS rewarded shareowners by increasing dividends per share by
nearly 10% over the prior year, and distributing $840 million
during the quarter.
- To support investment strategies the company made capital
expenditures of $1.5 billion.
- The lower effective tax rate reflects a more competitive U.S.
tax structure, some discrete tax items and includes the impact of
share-based compensation.
- First quarter results include the adoption of new accounting
standards for pension and revenue recognition. Prior-period
results were also recast to reflect these changes.
* Information on non-GAAP financial measures is attached
to this press release.
U.S. Domestic Segment
The U.S. Domestic segment experienced strong demand as customers
increasingly chose UPS solutions. Both unexpected and planned
items weighed on operating profit for the segment during the first
quarter.
|
1Q 2018 |
1Q 2017 |
Revenue |
$10,227
M |
$9,536
M |
Operating profit |
$756
M |
$950
M |
For the U.S. Domestic segment in 1Q 2018:
- Revenue increased to $10.2 billion, up 7.2% over 1Q 2017.
Revenue improved across all products, signaling the strong market
demand for UPS solutions.
- Revenue per piece increased 2.6% as higher base-rate pricing
and fuel surcharges offset headwinds from customer and product
mix.
- Operating profit includes headwinds from severe winter weather
of $85 million, Saturday deployment, network projects and higher
pension expenses.
International Segment
“The execution of our diversified global strategies and our
investments produced double-digit growth in revenue and profit,”
said Abney. “Each of our International regions is
contributing to our financial gains, and we expect this strong
momentum to continue.”
|
1Q 2018 |
1Q 2017 |
Revenue |
$3,533
M |
$3,074
M |
Operating profit |
$594
M |
$518
M |
For the International segment in 1Q 2018:
- International revenue increased 15% despite two fewer operating
days in many countries. Currency-neutral revenue increased
8.7%.
- Export, Domestic and Cargo product groups all achieved
double-digit revenue growth.
- Export shipments per day grew an average 12% as premium
products continue to outpace non-premium.
- Export volume growth in Europe and the U.S. continued to be
strong for the quarter.
- Operating profit was $594 million, up 15% on higher Export
shipments and expanded product yields. Currency-neutral
operating profit increased 10%.
* Information on non-GAAP financial measures is attached
to this press release.
Supply Chain and Freight Segment
The Supply Chain and Freight segment produced another quarter of
strong financial results. Revenue and operating profit grew
by double digits due to successful revenue-quality initiatives,
opportunistic growth strategies and structural cost reductions.
|
|
|
|
1Q 2018 |
1Q 2017 |
Revenue |
$3,353
M |
$2,900
M |
Operating profit |
$170
M |
$149
M |
|
|
|
For the Supply Chain and Freight segment in 1Q 2018:
- Revenue increased to $3.4 billion, up 16% over 1Q 2017.
The business units focused on high quality, middle-market
customers.
- The Forwarding business led all units
with 27% revenue growth, as revenue management initiatives and
stable market conditions drove top-line gains.
- UPS Freight revenue increased 9.9% on
solid LTL (less-than-truckload) pricing and tonnage growth.
- Operating profit was $170 million, up
14% from the same quarter in 2017.
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 or other unanticipated events, which
would be included in reported (GAAP) results and could be
material.
“Our focused business strategies are producing
strong results in both the International and Supply Chain
segments,” said Richard Peretz, UPS’s chief financial
officer. “The benefits from our investments, new multi-year
transformation efficiencies and stronger pricing position us well
for shareowner value creation.”
- UPS expects 2018 adjusted diluted earnings per share to be in a
range of $7.03 to $7.37.
- The company projects free cash flow of $4.5 billion to $5.0
billion in 2018.
- The effective tax rate should be in a range of 23% to 24% for
the remainder of the year.
- Capital expenditures in 2018 are planned between $6.5 billion
to $7.0 billion.
Conference Call
Information
UPS CEO David Abney and CFO Richard Peretz will discuss
first-quarter results with investors and analysts during a
conference call at 8:30 a.m. ET, April 26, 2018. 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.
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 (including tax laws and regulations), our
competitive environment, changes in the facts or assumptions
underlying our health and pension benefit funding obligations,
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.
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, other income
(expense), 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, free cash flow excluding
discretionary pension contributions, as well as currency-neutral
revenue, revenue per piece and operating profit.
We consider quantitative and qualitative factors in assessing
whether to adjust for the impact of items that may be significant
or that could affect an understanding of our ongoing financial and
business performance or trends. Examples of items for which we may
make adjustments include but are not limited to: amounts related to
mark-to-market gains or losses (non-cash); settlement of
contingencies; gains or losses associated with mergers,
acquisitions, divestitures and other structural changes; charges
related to restructuring programs; asset impairments (non-cash);
amounts related to changes in tax regulations or positions; pension
and postretirement related items; and debt modifications.
We believe that these non-GAAP measures provide additional
meaningful information to assist users of our financial statements
in understanding our financial results, cash flows 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.
Free Cash Flow
We supplement the reporting of cash flows from operating
activities with free cash flow, a non-GAAP liquidity measure. We
believe free cash flow is an important indicator of how much cash
is generated by regular business operations and we use it as a
measure of incremental cash available to invest in our business,
meet our debt obligations and return cash to shareowners. We
calculate free cash flow as cash flows from operating activities
less capital expenditures, proceeds from disposals of property,
plant and equipment, and plus or minus the net changes in finance
receivables and other investing activities.
|
|
Reconciliation of GAAP and non-GAAP Revenue,
Revenue Per Piece and Operating Profit |
(in millions, except Per Piece
amounts): |
|
Three Months Ended March 31 |
|
|
|
|
|
|
|
2018 As-Reported (GAAP) |
2017 As-Reported (GAAP) |
% Change (GAAP) |
Currency Impact |
2018 Currency-Neutral
(non-GAAP) |
% Change (non-GAAP) |
Average Revenue
Per Piece: |
|
|
|
|
|
|
International Package: |
|
|
|
|
|
|
Domestic |
$ |
6.70 |
$ |
5.69 |
17.8 |
% |
$ |
(0.74 |
) |
$ |
5.96 |
4.7 |
% |
Export |
|
28.87 |
|
28.15 |
2.6 |
% |
|
(1.21 |
) |
|
27.66 |
-1.7 |
% |
Total
International Package |
$ |
16.99 |
$ |
15.47 |
9.8 |
% |
$ |
(0.96 |
) |
$ |
16.03 |
3.6 |
% |
|
|
|
|
|
|
|
Consolidated |
$ |
10.97 |
$ |
10.52 |
4.3 |
% |
$ |
(0.16 |
) |
$ |
10.81 |
2.8 |
% |
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
10,227 |
$ |
9,536 |
7.2 |
% |
$ |
- |
|
$ |
10,227 |
7.2 |
% |
International Package |
|
3,533 |
|
3,074 |
14.9 |
% |
|
(193 |
) |
|
3,340 |
8.7 |
% |
Supply
Chain & Freight |
|
3,353 |
|
2,900 |
15.6 |
% |
|
(51 |
) |
|
3,302 |
13.9 |
% |
Total
revenue |
$ |
17,113 |
$ |
15,510 |
10.3 |
% |
$ |
(244 |
) |
$ |
16,869 |
8.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit: |
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
756 |
$ |
950 |
-20.4 |
% |
$ |
- |
|
$ |
756 |
-20.4 |
% |
International Package |
|
594 |
|
518 |
14.7 |
% |
|
(22 |
) |
|
572 |
10.4 |
% |
Supply
Chain & Freight |
|
170 |
|
149 |
14.1 |
% |
|
(1 |
) |
|
169 |
13.4 |
% |
Total
operating profit |
$ |
1,520 |
$ |
1,617 |
-6.0 |
% |
$ |
(23 |
) |
$ |
1,497 |
-7.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP and non-GAAP Liquidity
Measures (in millions) |
|
|
Three Months Ended March 31 |
|
|
Net Increase in Cash, Cash Equivalents and
Restricted Cash |
|
|
|
Preliminary2018 |
Cash flows from
operating activities |
$ |
4,067 |
|
Cash flows used in
investing activities |
|
(1,446 |
) |
Cash flows used in
financing activities |
|
(2,550 |
) |
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
(14 |
) |
Net increase in cash,
cash equivalents and restricted cash |
$ |
57 |
|
|
|
Reconciliation of Free Cash Flow
(non-GAAP) |
|
|
|
Preliminary2018 |
|
|
Cash flows from
operating activities (GAAP) |
$ |
4,067 |
|
Capital
expenditures |
|
(1,537 |
) |
Proceeds from disposals
of PP&E |
|
20 |
|
Net change in finance
receivables |
|
- |
|
Other investing
activities |
|
2 |
|
Free cash
flow (non-GAAP) |
$ |
2,552 |
|
|
|
|
|
United Parcel Service, Inc. |
Selected Financial Data - First
Quarter |
(unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31 |
|
|
|
2018 |
|
|
|
2017 |
|
|
Change |
|
% Change |
(amounts
in millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of
Income Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
10,227 |
|
|
$ |
9,536 |
|
|
$ |
691 |
|
|
7.2 |
% |
International Package |
|
3,533 |
|
|
|
3,074 |
|
|
|
459 |
|
|
14.9 |
% |
Supply
Chain & Freight |
|
3,353 |
|
|
|
2,900 |
|
|
|
453 |
|
|
15.6 |
% |
Total
revenue |
|
17,113 |
|
|
|
15,510 |
|
|
|
1,603 |
|
|
10.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
9,045 |
|
|
|
8,311 |
|
|
|
734 |
|
|
8.8 |
% |
Other |
|
6,548 |
|
|
|
5,582 |
|
|
|
966 |
|
|
17.3 |
% |
Total
operating expenses |
|
15,593 |
|
|
|
13,893 |
|
|
|
1,700 |
|
|
12.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
|
756 |
|
|
|
950 |
|
|
|
(194 |
) |
|
-20.4 |
% |
International Package |
|
594 |
|
|
|
518 |
|
|
|
76 |
|
|
14.7 |
% |
Supply
Chain & Freight |
|
170 |
|
|
|
149 |
|
|
|
21 |
|
|
14.1 |
% |
Total
operating profit |
|
1,520 |
|
|
|
1,617 |
|
|
|
(97 |
) |
|
-6.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
pension income (expense) |
|
285 |
|
|
|
180 |
|
|
|
105 |
|
|
58.3 |
% |
Investment income and other |
|
9 |
|
|
|
15 |
|
|
|
(6 |
) |
|
-40.0 |
% |
Interest
expense |
|
(153 |
) |
|
|
(102 |
) |
|
|
(51 |
) |
|
50.0 |
% |
Total
other income (expense) |
|
141 |
|
|
|
93 |
|
|
|
48 |
|
|
51.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
1,661 |
|
|
|
1,710 |
|
|
|
(49 |
) |
|
-2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
316 |
|
|
|
544 |
|
|
|
(228 |
) |
|
-41.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
1,345 |
|
|
$ |
1,166 |
|
|
$ |
179 |
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income as a
percentage of revenue |
|
7.9 |
% |
|
|
7.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
1.55 |
|
|
$ |
1.33 |
|
|
$ |
0.22 |
|
|
16.5 |
% |
Diluted
earnings per share |
$ |
1.55 |
|
|
$ |
1.33 |
|
|
$ |
0.22 |
|
|
16.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
866 |
|
|
|
874 |
|
|
|
(8 |
) |
|
-0.9 |
% |
Diluted |
|
870 |
|
|
|
879 |
|
|
|
(9 |
) |
|
-1.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Selected Operating Data - First
Quarter |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
March 31 |
|
|
|
2018 |
|
|
2017 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
|
|
Next Day
Air |
$ |
1,784 |
|
$ |
1,665 |
|
$ |
119 |
|
|
7.1 |
% |
Deferred |
|
1,069 |
|
|
970 |
|
|
99 |
|
|
10.2 |
% |
Ground |
|
7,374 |
|
|
6,901 |
|
|
473 |
|
|
6.9 |
% |
Total
U.S. Domestic Package |
|
10,227 |
|
|
9,536 |
|
|
691 |
|
|
7.2 |
% |
International
Package: |
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
716 |
|
|
613 |
|
|
103 |
|
|
16.8 |
% |
Export |
|
2,672 |
|
|
2,337 |
|
|
335 |
|
|
14.3 |
% |
Cargo and
Other |
|
145 |
|
|
124 |
|
|
21 |
|
|
16.9 |
% |
Total
International Package |
|
3,533 |
|
|
3,074 |
|
|
459 |
|
|
14.9 |
% |
Supply Chain &
Freight: |
|
|
|
|
|
|
|
|
|
|
|
Forwarding |
|
1,605 |
|
|
1,266 |
|
|
339 |
|
|
26.8 |
% |
Logistics |
|
782 |
|
|
740 |
|
|
42 |
|
|
5.7 |
% |
Freight |
|
777 |
|
|
707 |
|
|
70 |
|
|
9.9 |
% |
Other |
|
189 |
|
|
187 |
|
|
2 |
|
|
1.1 |
% |
Total
Supply Chain & Freight |
|
3,353 |
|
|
2,900 |
|
|
453 |
|
|
15.6 |
% |
Consolidated |
$ |
17,113 |
|
$ |
15,510 |
|
$ |
1,603 |
|
|
10.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated volume (in
millions) |
|
1,241 |
|
|
1,187 |
|
|
54 |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays |
|
64 |
|
|
64 |
|
|
- |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily
Package Volume (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
|
|
Next Day
Air |
|
1,437 |
|
|
1,315 |
|
|
122 |
|
|
9.3 |
% |
Deferred |
|
1,297 |
|
|
1,243 |
|
|
54 |
|
|
4.3 |
% |
Ground |
|
13,545 |
|
|
13,008 |
|
|
537 |
|
|
4.1 |
% |
Total
U.S. Domestic Package |
|
16,279 |
|
|
15,566 |
|
|
713 |
|
|
4.6 |
% |
International
Package: |
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
1,670 |
|
|
1,683 |
|
|
(13 |
) |
|
-0.8 |
% |
Export |
|
1,446 |
|
|
1,297 |
|
|
149 |
|
|
11.5 |
% |
Total
International Package |
|
3,116 |
|
|
2,980 |
|
|
136 |
|
|
4.6 |
% |
Consolidated |
|
19,395 |
|
|
18,546 |
|
|
849 |
|
|
4.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
|
|
Next Day
Air |
$ |
19.40 |
|
$ |
19.78 |
|
$ |
(0.38 |
) |
|
-1.9 |
% |
Deferred |
|
12.88 |
|
|
12.19 |
|
|
0.69 |
|
|
5.7 |
% |
Ground |
|
8.51 |
|
|
8.29 |
|
|
0.22 |
|
|
2.7 |
% |
Total
U.S. Domestic Package |
|
9.82 |
|
|
9.57 |
|
|
0.25 |
|
|
2.6 |
% |
International
Package: |
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
6.70 |
|
|
5.69 |
|
|
1.01 |
|
|
17.8 |
% |
Export |
|
28.87 |
|
|
28.15 |
|
|
0.72 |
|
|
2.6 |
% |
Total
International Package |
|
16.99 |
|
|
15.47 |
|
|
1.52 |
|
|
9.8 |
% |
Consolidated |
$ |
10.97 |
|
$ |
10.52 |
|
$ |
0.45 |
|
|
4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Supplemental Analysis of Currency and UPS
Freight |
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue Per
Piece |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Currency |
|
|
|
March 31 |
|
|
|
|
|
Neutral |
|
|
|
|
2018 |
|
|
2017 |
|
% Change |
|
Currency |
|
2018* |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
|
|
Domestic |
$ |
6.70 |
|
$ |
5.69 |
|
|
17.8 |
% |
|
$ |
(0.74 |
) |
|
$ |
5.96 |
|
4.7 |
% |
Export |
|
28.87 |
|
|
28.15 |
|
|
2.6 |
% |
|
$ |
(1.21 |
) |
|
$ |
27.66 |
|
-1.7 |
% |
Total
International Package |
$ |
16.99 |
|
$ |
15.47 |
|
|
9.8 |
% |
|
$ |
(0.96 |
) |
|
$ |
16.03 |
|
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
$ |
10.97 |
|
$ |
10.52 |
|
|
4.3 |
% |
|
$ |
(0.16 |
) |
|
$ |
10.81 |
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Currency |
|
|
|
March 31 |
|
|
|
|
|
Neutral |
|
|
|
|
2018 |
|
|
2017 |
|
% Change |
|
Currency |
|
2018* |
|
% Change |
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
10,227 |
|
$ |
9,536 |
|
|
7.2 |
% |
|
$ |
- |
|
|
$ |
10,227 |
|
7.2 |
% |
International Package |
|
3,533 |
|
|
3,074 |
|
|
14.9 |
% |
|
|
(193 |
) |
|
|
3,340 |
|
8.7 |
% |
Supply
Chain & Freight |
|
3,353 |
|
|
2,900 |
|
|
15.6 |
% |
|
|
(51 |
) |
|
|
3,302 |
|
13.9 |
% |
Total
revenue |
$ |
17,113 |
|
$ |
15,510 |
|
|
10.3 |
% |
|
$ |
(244 |
) |
|
$ |
16,869 |
|
8.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Operating
Profit |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Currency |
|
|
|
March 31 |
|
|
|
|
|
Neutral |
|
|
|
|
2018 |
|
|
2017 |
|
% Change |
|
Currency |
|
2018* |
|
% Change |
Operating
profit (in millions): |
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
756 |
|
$ |
950 |
|
|
-20.4 |
% |
|
$ |
- |
|
|
$ |
756 |
|
-20.4 |
% |
International Package |
|
594 |
|
|
518 |
|
|
14.7 |
% |
|
|
(22 |
) |
|
|
572 |
|
10.4 |
% |
Supply
Chain & Freight |
|
170 |
|
|
149 |
|
|
14.1 |
% |
|
|
(1 |
) |
|
|
169 |
|
13.4 |
% |
Total
operating profit |
$ |
1,520 |
|
$ |
1,617 |
|
|
-6.0 |
% |
|
$ |
(23 |
) |
|
$ |
1,497 |
|
-7.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UPS Freight Selected Operating Data - First
Quarter |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
March 31 |
|
|
|
|
|
|
|
|
2018 |
|
|
2017 |
|
Change |
|
% Change |
|
|
|
|
LTL revenue (in
millions) |
$ |
661 |
|
$ |
616 |
|
$ |
45 |
|
|
|
7.3 |
% |
|
|
|
|
LTL revenue per LTL
hundredweight |
$ |
24.76 |
|
$ |
23.57 |
|
$ |
1.19 |
|
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL shipments (in
thousands) |
|
2,468 |
|
|
2,510 |
|
|
(42 |
) |
|
|
-1.7 |
% |
|
|
|
|
LTL shipments per day
(in thousands) |
|
38.6 |
|
|
39.2 |
|
|
(0.6 |
) |
|
|
-1.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL gross weight hauled
(in millions of pounds) |
|
2,670 |
|
|
2,613 |
|
|
57 |
|
|
|
2.2 |
% |
|
|
|
|
LTL weight per shipment
(in pounds) |
|
1,082 |
|
|
1,041 |
|
|
41 |
|
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays |
|
64 |
|
|
64 |
|
|
- |
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detail of Other Operating Expenses - First
Quarter |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
Three Months Ended |
|
|
|
|
March 31 |
|
|
|
|
2018 |
|
|
2017 |
|
Change |
|
% Change |
Repairs and
maintenance |
$ |
434 |
|
$ |
390 |
|
$ |
44 |
|
11.3 |
% |
Depreciation and
amortization |
|
596 |
|
|
554 |
|
|
42 |
|
7.6 |
% |
Purchased
transportation |
|
3,145 |
|
|
2,545 |
|
|
600 |
|
23.6 |
% |
Fuel |
|
750 |
|
|
621 |
|
|
129 |
|
20.8 |
% |
Other occupancy |
|
361 |
|
|
299 |
|
|
62 |
|
20.7 |
% |
Other expenses |
|
1,262 |
|
|
1,173 |
|
|
89 |
|
7.6 |
% |
Total other operating
expenses |
$ |
6,548 |
|
$ |
5,582 |
|
$ |
966 |
|
17.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detail of Other Pension Income (Expense) -
First Quarter |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
Three Months Ended |
|
|
|
|
March 31 |
|
|
|
|
2018 |
|
|
2017 |
|
Change |
|
% Change |
U.S. Domestic
Package |
$ |
227 |
|
$ |
139 |
|
$ |
88 |
|
63.3 |
% |
International
Package |
|
20 |
|
|
13 |
|
|
7 |
|
53.8 |
% |
Supply Chain &
Freight |
|
38 |
|
|
28 |
|
|
10 |
|
35.7 |
% |
Total other pension
income (expense) |
$ |
285 |
|
$ |
180 |
|
$ |
105 |
|
58.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share and Share Data - First
Quarter |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
(amounts
in millions, except per share data) |
|
|
March 31 |
|
|
|
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
Net
income |
|
|
$ |
1,345 |
|
$ |
1,166 |
|
|
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
Weighted-average shares |
|
|
|
861 |
|
|
869 |
|
|
Deferred
compensation obligations |
|
|
|
1 |
|
|
1 |
|
|
Vested
portion of restricted units |
|
|
|
4 |
|
|
4 |
|
|
Denominator for basic
earnings per share |
|
|
|
866 |
|
|
874 |
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities: |
|
|
|
|
|
|
|
|
|
Restricted units |
|
|
|
4 |
|
|
4 |
|
|
Stock
options |
|
|
|
- |
|
|
1 |
|
|
Denominator for diluted
earnings per share |
|
|
|
870 |
|
|
879 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
|
$ |
1.55 |
|
$ |
1.33 |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
|
$ |
1.55 |
|
$ |
1.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detail of
shares outstanding as of March 31, 2018: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A shares |
|
|
|
173 |
|
|
|
|
|
Class B shares |
|
|
|
689 |
|
|
|
|
|
Total
shares outstanding |
|
|
|
862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Consolidated Balance Sheets - March 31, 2018
and December 31, 2017 |
(unaudited) |
|
|
|
|
(amounts in
millions) |
March 31, |
|
December 31, |
|
2018 |
|
2017 |
ASSETS |
|
|
|
Current
Assets: |
|
|
|
Cash and marketable securities |
$ |
4,209 |
|
$ |
4,069 |
Other current assets |
|
9,411 |
|
|
11,649 |
Total Current Assets |
|
13,620 |
|
|
15,718 |
Property,
Plant and Equipment |
|
50,309 |
|
|
48,726 |
Less accumulated depreciation and amortization |
|
27,070 |
|
|
26,608 |
|
|
23,239 |
|
|
22,118 |
Other
Assets |
|
7,605 |
|
|
7,738 |
|
$ |
44,464 |
|
$ |
45,574 |
|
|
|
|
LIABILITIES
AND SHAREOWNERS' EQUITY |
|
|
|
Current
Liabilities |
$ |
11,149 |
|
$ |
12,886 |
Long-Term
Debt |
|
20,409 |
|
|
20,278 |
Pension and
Postretirement Benefit Obligations |
|
7,053 |
|
|
7,061 |
Deferred
Taxes, Credits and Other Liabilities |
|
4,478 |
|
|
4,325 |
Shareowners' Equity |
|
1,375 |
|
|
1,024 |
|
$ |
44,464 |
|
$ |
45,574 |
|
|
|
|
Amounts are
subject to reclassification. |
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Selected Cash Flow Data |
(unaudited) |
|
|
Net Increase in Cash, Cash Equivalents and
Restricted Cash |
|
|
|
Preliminary |
|
Year-to-Date |
(amounts in
millions) |
March 31 |
Cash flows from
operating activities |
$ |
4,067 |
|
Cash flows used in
investing activities |
|
(1,446 |
) |
Cash flows used in
financing activities |
|
(2,550 |
) |
Effect of exchange rate
changes on cash, cash equivalents and restricted cash |
|
(14 |
) |
Net increase in cash,
cash equivalents and restricted cash |
$ |
57 |
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow (non-GAAP
measure) |
|
|
|
Preliminary |
|
Year-to-Date |
(amounts in
millions) |
March 31 |
Cash flows from
operating activities |
$ |
4,067 |
|
Capital
expenditures |
|
(1,537 |
) |
Proceeds from disposals
of PP&E |
|
20 |
|
Net change in finance
receivables |
|
- |
|
Other investing
activities |
|
2 |
|
Free cash
flow (non-GAAP measure) |
$ |
2,552 |
|
|
|
|
|
Amounts are subject to
reclassification. |
|
United Parcel Service, Inc. |
|
Aircraft Fleet - As of March 31,
2018 |
|
(unaudited) |
|
|
|
|
|
|
|
|
Owned and |
Leases & Charters |
|
|
|
Description |
Capital Leases |
from Others |
On Order |
Under Option |
|
Operating: |
|
|
|
|
|
Boeing 757-200 |
75 |
- |
- |
- |
|
Boeing 767-200 |
- |
2 |
- |
|
|
Boeing 767-300 |
59 |
- |
4 |
- |
|
Boeing 767-300BCF |
3 |
- |
- |
- |
|
Airbus A300-600 |
52 |
- |
- |
- |
|
Boeing MD-11 |
37 |
4 |
- |
- |
|
Boeing 747-400F |
11 |
- |
- |
- |
|
Boeing 747-400BCF |
2 |
- |
- |
- |
|
Boeing 747-8F |
5 |
- |
23 |
- |
|
Other |
- |
314 |
- |
- |
|
|
|
|
|
|
|
Total |
244 |
320 |
27 |
- |
|
|
|
|
|
|
|
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