UPS sees Q3 revenues grow 16%
Net income was $2 billion for the quarter, 11.8 per cent above the same period in 2019, or 10.7 per cent on an adjusted basis.
UPS has announced its third-quarter 2020 consolidated revenue of $21.2 billion, a 15.9 per cent increase over the third quarter of 2019. Consolidated average daily volume increased 13.5 per cent year over year. Net income was $2 billion for the quarter, 11.8 per cent above the same period in 2019, or 10.7 per cent on an adjusted basis. Operating profit was $2.4 billion, up 11 per cent compared to last year’s third quarter, or 9.9 per cent on an adjusted basis.
Diluted earnings per share was $2.24 and adjusted diluted earnings per share was $2.28, up 10.1 per cent from the same period last year. GAAP results include a pre-tax transformation charge of $44 million, equivalent to $0.04 per share. In the prior year period, GAAP results included a pre-tax charge for transformation costs of $63 million, equivalent to $0.06 per diluted share.
“Our performance highlights the agility of our global integrated network amid the ongoing challenges of the pandemic. Our results were fueled by continued strong outbound demand from Asia and growth from small and medium-sized businesses,” said Carol Tomé, UPS chief executive officer. She added, “UPSers are everyday heroes who are keeping the world’s supply chains moving. I want to thank our team for their ongoing commitment to our customers and the communities we serve.”
US Domestic Segment
-Average daily volume increased 13.8 per cent, with growth across all products and continued elevated residential demand.
-Operating margin was 8.3 per cent; adjusted operating margin was 8.6 per cent.
International Segment
-Average daily volume grew 12.1 per cent, with double-digit export volume growth globally and continued strong outbound demand from Asia.
-Operating margin was 23.6 per cent; adjusted operating margin was 23.8 per cent.
Supply Chain and Freight Segment
-Revenue increased 16.5 per cent, driven by strong freight forwarding demand out of Asia.
-Operating margin was 7.6 per cent; adjusted operating margin was 7.7 per cent.
* “Adjusted” amounts are non-GAAP financial measures. See the appendix to this release for a discussion of non-GAAP financial measures, including a reconciliation to the most closely correlated GAAP measure.
