Q3-2019 UPS Inc. Earnings Call

  • Revenue for 2nd Quarter rose 5% to $18.3 billion.
  • Total Operating Profit grew 23% with growth in all segments.
  • Net Income was $1.75 Billion.
  • Operating Margin increased 170 basis points to 8.17%.
  • U.S Daily Volume was up more than 9%.

 

US Domestic Segment

  • Highlights:
    • Next Day Air volume up more than 23%
    • Deferred Air volume grew more than 17%
    • Ground volume grew nearly 7%
    • Revenue grew more than $1 billion, a nearly 10% increase.
    • Total US Operating Profit grew 28.1%
    • Total US Operating Margin was 10.6%
    • Decline in unit cost growth of 2.5%

 

International Segment

  • Highlights:
    • International domestic revenue per piece rose 2.3% when adjusted for currency.
    • Total Operating Profit increased more than 24% to $693 million.
    • Total Revenue was $3.5 Billion
    • Export volume was flat.

 

Supply Chain & Freight Segment

  • Highlights:
    • Operating Margin grew to 7.3%
    • Logistics revenue increased more than 7% from growth in healthcare, retail and manufacturing sectors.
    • Nearly 4% increase in revenue per LTL hundredweight