UPS (NYSE:UPS) today announced earnings per share of $1.45 for the
third quarter. All three major business units executed well
during the quarter. The company converted accelerating global
demand for UPS solutions into solid financial results, despite one
less operating day in 3Q 2017.
Consolidated
Results |
3Q 2017 |
3Q 2016 |
Revenue |
$15,978
M |
$14,928 M |
Operating profit |
$2,035
M |
$2,034
M |
Currency-neutral
operating profit* |
$2,097
M |
|
Diluted earnings per
share |
$1.45 |
$1.44 |
“UPS produced another solid quarter of financial performance,
despite the impact of several natural disasters that slowed
regional economic activity and damaged infrastructure,” said David
Abney, UPS chairman and CEO. “Our business segments adapted
quickly to changing conditions this quarter, taking advantage of
market opportunities while minimizing cost and service disruptions
from recent events.”
For the total company in 3Q 2017:
- Revenue increased 7.0%, and currency-neutral revenue* was up
7.1%.
- Revenue increased in all segments and major product categories,
as expanded customer demand spread across the company’s broad
product portfolio.
- Operating profit was $2.0 billion, driven by strong performance
in the International and Supply Chain and Freight segments.
- Year-to-date capital expenditures were $3.7 billion, supporting
our investment strategies.
- This year UPS has paid dividends of nearly $2.1 billion, an
increase of 6.4% per share over the prior year, rewarding
shareowners with continued strong dividend yield.
- So far this year the company has repurchased 12.3 million
shares for approximately $1.4 billion, 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 continues to benefit from online retail
customer demand for both UPS Next Day Air and Ground services,
which drove a 3.9% increase in revenue over 3Q 2016. The U.S.
consumer increasingly prefers to shop online and UPS is benefiting
from this trend through its unique portfolio of convenient and
economical delivery solutions.
|
3Q 2017 |
3Q 2016 |
Revenue |
$9,649
M |
$9,289 M |
Operating profit |
$1,182
M |
$1,252
M |
For the U.S. Domestic segment in 3Q 2017:
- Revenue increased $360 million or 3.9% over 3Q 2016, driven by
Next Day Air and Ground product growth.
- Next Day Air daily shipments were up 8.0%, as customers
continued to select UPS’s reliable, day-definite delivery
solutions.
- Deferred Air daily shipments were down slightly when compared
to the strong prior-year growth of more than 10%.
- Revenue per piece was up 2.0%, while base-rate pricing and
higher fuel surcharges offset changes in customer and product
mix.
- Operating profit includes negative impacts from one less
operating day, about $50 million from natural disasters, and
ongoing initiatives including facility construction and deployment
of Saturday operations of nearly $40 million.
International Segment
“Our International segment continued its track record as a
growth engine, generating strong top-line and operating-profit
growth driven by robust demand for UPS solutions,” said
Abney. “Export shipments grew across all regions as customers
took advantage of UPS’s expanded portfolio and enhanced
network.”
|
3Q 2017 |
3Q 2016 |
Revenue |
$3,364
M |
$3,024 M |
Operating profit |
$627
M |
$576
M |
Currency-neutral
operating profit* |
$689
M |
|
For the International segment in 3Q 2017:
- International produced record 3Q operating profit of $627
million, up 8.9%, as the result of broad, accelerated growth
combined with expanded yields.
- Currency-neutral operating profit* increased 20%.
- The segment reported revenue growth of 11% driven by premium
products.
- Robust Export shipment growth surged 19% per day. All
regions of the world contributed to the expansion.
- International Domestic daily shipments increased 5.7%, led by
double-digit growth across several European countries.
- Operating margin continues to lead the industry at
18.6%.
- Also highlighted in the quarter was the regulatory approval of
UPS joint venture with SF Express, a small-package carrier in
China.
* See attached reconciliation of non-GAAP
currency-neutral revenue and operating profit
Supply Chain and Freight Segment
The Supply Chain and Freight segment produced record third
quarter results with double-digit revenue growth and near
double-digit operating profit expansion. Performance results
were driven by revenue-quality improvements combined with
structural cost-reduction programs.
|
3Q 2017 |
3Q 2016 |
Revenue |
$2,965
M |
$2,615 M |
Operating profit |
$226
M |
$206
M |
For the Supply Chain and Freight segment in 3Q 2017:
- Revenue increased 13% over 3Q 2016, the result of deeper
alignment with preferred customers, strengthened revenue management
initiatives and improved market conditions.
- Tonnage gains in Freight Forwarding, UPS Freight and Coyote
Logistics contributed to improved top-line results.
- UPS Freight increased LTL (less-than-truckload) revenue by 9.3%
on tonnage growth of 5.5% and LTL revenue per hundredweight gains
of 3.6%.
- Increased customer demand from the retail and aerospace sectors
drove the Distribution unit’s revenue and operating profit
higher.
- Total segment operating profit improved 9.7% to $226
million.
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.
“UPS third-quarter results highlight the flexibility of our
business” said Richard Peretz, UPS chief financial officer.
“Our recent performance gives us confidence moving forward as we
adapt to evolving, global ecommerce strategies with increased
seasonality. We are executing well on our plans, have a
positive outlook for peak and as a result, we are moving higher in
our original guidance range.”
The company’s full-year 2017 adjusted earnings per share
guidance includes the following:
- Momentum in the business will continue, led by the
International segment.
- Focus remains on delivering a successful peak season for
customers and investors.
- Operating penalties for ongoing facility investments and
Saturday deployment will be approximately $60 million in the fourth
quarter.
- Currency headwinds will continue to weigh on year-over-year
comparisons.
- The tax rate is expected to be 35% for the 4Q 2017 and excludes
4Q 2016 tax savings of approximately $0.05 per share.
UPS moves 2017 adjusted diluted EPS guidance range to between
$5.85 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
third-quarter results with investors and analysts during a
conference call at 8:30 a.m. ET, October 26, 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 September 30 |
|
|
2017 As-Reported(GAAP) |
2016 As-Reported(GAAP) |
% Change(GAAP) |
|
CurrencyImpact |
2017Currency-Neutral(non-GAAP) |
% Change(non-GAAP) |
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
International Package: |
|
|
|
|
|
|
|
Domestic |
$ |
6.27 |
$ |
5.90 |
6.3% |
|
$ |
(0.27) |
|
$ |
6.00 |
1.7% |
Export |
|
29.00 |
|
30.35 |
-4.4% |
|
|
0.47 |
|
|
29.47 |
-2.9% |
Total
International Package |
$ |
16.52 |
$ |
16.21 |
1.9% |
|
$ |
0.06 |
|
$ |
16.58 |
2.3% |
|
|
|
|
|
|
|
|
Consolidated |
$ |
10.77 |
$ |
10.49 |
2.7% |
|
$ |
0.01 |
|
$ |
10.78 |
2.8% |
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
9,649 |
$ |
9,289 |
3.9% |
|
$ |
- |
|
$ |
9,649 |
3.9% |
International Package |
|
3,364 |
|
3,024 |
11.2% |
|
|
12 |
|
|
3,376 |
11.6% |
Supply
Chain & Freight |
|
2,965 |
|
2,615 |
13.4% |
|
|
(9) |
|
|
2,956 |
13.0% |
Total
revenue |
$ |
15,978 |
$ |
14,928 |
7.0% |
|
$ |
3 |
|
$ |
15,981 |
7.1% |
|
|
|
|
|
|
|
|
Operating
Profit: |
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
1,182 |
$ |
1,252 |
-5.6% |
|
$ |
- |
|
$ |
1,182 |
-5.6% |
International Package |
|
627 |
|
576 |
8.9% |
|
|
62 |
|
|
689 |
19.6% |
Supply
Chain & Freight |
|
226 |
|
206 |
9.7% |
|
|
- |
|
|
226 |
9.7% |
Total
operating profit |
$ |
2,035 |
$ |
2,034 |
0.0% |
|
$ |
62 |
|
$ |
2,097 |
3.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30 |
|
|
|
|
|
|
|
|
|
2017 As-Reported(GAAP) |
2016 As-Reported(GAAP) |
% Change(GAAP) |
|
CurrencyImpact |
2017Currency-Neutral(non-GAAP) |
% Change(non-GAAP) |
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
International Package: |
|
|
|
|
|
|
|
Domestic |
$ |
5.99 |
$ |
5.96 |
0.5% |
|
$ |
0.12 |
$ |
6.11 |
2.5% |
Export |
|
28.79 |
|
30.72 |
-6.3% |
|
|
1.23 |
|
30.02 |
-2.3% |
Total
International Package |
$ |
16.10 |
$ |
16.43 |
-2.0% |
|
$ |
0.61 |
$ |
16.71 |
1.7% |
|
|
|
|
|
|
|
|
Consolidated |
$ |
10.68 |
$ |
10.48 |
1.9% |
|
$ |
0.09 |
$ |
10.77 |
2.8% |
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
28,929 |
$ |
27,388 |
5.6% |
|
$ |
- |
$ |
28,929 |
5.6% |
International Package |
|
9,585 |
|
9,015 |
6.3% |
|
|
352 |
|
9,937 |
10.2% |
Supply
Chain & Freight |
|
8,529 |
|
7,572 |
12.6% |
|
|
15 |
|
8,544 |
12.8% |
Total
revenue |
$ |
47,043 |
$ |
43,975 |
7.0% |
|
$ |
367 |
$ |
47,410 |
7.8% |
|
|
|
|
|
|
|
|
Operating
Profit: |
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
3,653 |
$ |
3,587 |
1.8% |
|
$ |
- |
$ |
3,653 |
1.8% |
International Package |
|
1,739 |
|
1,763 |
-1.4% |
|
|
295 |
|
2,034 |
15.4% |
Supply
Chain & Freight |
|
643 |
|
545 |
18.0% |
|
|
1 |
|
644 |
18.2% |
Total
operating profit |
$ |
6,035 |
$ |
5,895 |
2.4% |
|
$ |
296 |
$ |
6,331 |
7.4% |
|
|
United Parcel Service, Inc. |
|
Selected Financial Data - Second
Quarter |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
September 30 |
|
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Change |
|
% Change |
|
|
|
(amounts
in millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
Statement of
Income Data: |
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
9,649 |
|
|
$ |
9,289 |
|
|
$ |
360 |
|
|
3.9 |
% |
|
|
|
International Package |
|
3,364 |
|
|
|
3,024 |
|
|
|
340 |
|
|
11.2 |
% |
|
|
|
Supply
Chain & Freight |
|
2,965 |
|
|
|
2,615 |
|
|
|
350 |
|
|
13.4 |
% |
|
|
|
Total
revenue |
|
15,978 |
|
|
|
14,928 |
|
|
|
1,050 |
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
8,221 |
|
|
|
7,857 |
|
|
|
364 |
|
|
4.6 |
% |
|
|
|
Other |
|
5,722 |
|
|
|
5,037 |
|
|
|
685 |
|
|
13.6 |
% |
|
|
|
Total
operating expenses |
|
13,943 |
|
|
|
12,894 |
|
|
|
1,049 |
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
|
1,182 |
|
|
|
1,252 |
|
|
|
(70 |
) |
|
-5.6 |
% |
|
|
|
International Package |
|
627 |
|
|
|
576 |
|
|
|
51 |
|
|
8.9 |
% |
|
|
|
Supply
Chain & Freight |
|
226 |
|
|
|
206 |
|
|
|
20 |
|
|
9.7 |
% |
|
|
|
Total
operating profit |
|
2,035 |
|
|
|
2,034 |
|
|
|
1 |
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
Investment income and other |
|
20 |
|
|
|
13 |
|
|
|
7 |
|
|
53.8 |
% |
|
|
|
Interest
expense |
|
(111 |
) |
|
|
(94 |
) |
|
|
(17 |
) |
|
18.1 |
% |
|
|
|
Total
other income (expense) |
|
(91 |
) |
|
|
(81 |
) |
|
|
(10 |
) |
|
12.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
1,944 |
|
|
|
1,953 |
|
|
|
(9 |
) |
|
-0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
680 |
|
|
|
683 |
|
|
|
(3 |
) |
|
-0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
1,264 |
|
|
$ |
1,270 |
|
|
$ |
(6 |
) |
|
-0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income as a
percentage of revenue |
|
7.9 |
% |
|
|
8.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
1.45 |
|
|
$ |
1.44 |
|
|
$ |
0.01 |
|
|
0.7 |
% |
|
|
|
Diluted
earnings per share |
$ |
1.45 |
|
|
$ |
1.44 |
|
|
$ |
0.01 |
|
|
0.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
869 |
|
|
|
880 |
|
|
|
(11 |
) |
|
-1.3 |
% |
|
|
|
Diluted |
|
874 |
|
|
|
885 |
|
|
|
(11 |
) |
|
-1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
|
Selected Operating Data - Second
Quarter |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
September 30 |
|
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
|
Next Day
Air |
$ |
1,767 |
|
$ |
1,706 |
|
$ |
61 |
|
|
3.6 |
% |
|
|
|
Deferred |
|
1,002 |
|
|
967 |
|
|
35 |
|
|
3.6 |
% |
|
|
|
Ground |
|
6,880 |
|
|
6,616 |
|
|
264 |
|
|
4.0 |
% |
|
|
|
Total
U.S. Domestic Package |
|
9,649 |
|
|
9,289 |
|
|
360 |
|
|
3.9 |
% |
|
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
|
Domestic |
|
673 |
|
|
609 |
|
|
64 |
|
|
10.5 |
% |
|
|
|
Export |
|
2,556 |
|
|
2,284 |
|
|
272 |
|
|
11.9 |
% |
|
|
|
Cargo and
Other |
|
135 |
|
|
131 |
|
|
4 |
|
|
3.1 |
% |
|
|
|
Total
International Package |
|
3,364 |
|
|
3,024 |
|
|
340 |
|
|
11.2 |
% |
|
|
|
Supply Chain &
Freight: |
|
|
|
|
|
|
|
|
|
|
Forwarding and Logistics |
|
1,989 |
|
|
1,735 |
|
|
254 |
|
|
14.6 |
% |
|
|
|
Freight |
|
778 |
|
|
701 |
|
|
77 |
|
|
11.0 |
% |
|
|
|
Other |
|
198 |
|
|
179 |
|
|
19 |
|
|
10.6 |
% |
|
|
|
Total
Supply Chain & Freight |
|
2,965 |
|
|
2,615 |
|
|
350 |
|
|
13.4 |
% |
|
|
|
Consolidated |
$ |
15,978 |
|
$ |
14,928 |
|
$ |
1,050 |
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated volume (in
millions) |
|
1,196 |
|
|
1,162 |
|
|
34 |
|
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays |
|
63 |
|
|
64 |
|
|
(1 |
) |
|
-1.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Package Volume (in thousands): |
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
|
Next Day
Air |
|
1,470 |
|
|
1,361 |
|
|
109 |
|
|
8.0 |
% |
|
|
|
Deferred |
|
1,240 |
|
|
1,260 |
|
|
(20 |
) |
|
-1.6 |
% |
|
|
|
Ground |
|
13,175 |
|
|
12,743 |
|
|
432 |
|
|
3.4 |
% |
|
|
|
Total
U.S. Domestic Package |
|
15,885 |
|
|
15,364 |
|
|
521 |
|
|
3.4 |
% |
|
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
|
Domestic |
|
1,704 |
|
|
1,612 |
|
|
92 |
|
|
5.7 |
% |
|
|
|
Export |
|
1,399 |
|
|
1,176 |
|
|
223 |
|
|
19.0 |
% |
|
|
|
Total
International Package |
|
3,103 |
|
|
2,788 |
|
|
315 |
|
|
11.3 |
% |
|
|
|
Consolidated |
|
18,988 |
|
|
18,152 |
|
|
836 |
|
|
4.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
|
Next Day
Air |
$ |
19.08 |
|
$ |
19.59 |
|
$ |
(0.51 |
) |
|
-2.6 |
% |
|
|
|
Deferred |
|
12.83 |
|
|
11.99 |
|
|
0.84 |
|
|
7.0 |
% |
|
|
|
Ground |
|
8.29 |
|
|
8.11 |
|
|
0.18 |
|
|
2.2 |
% |
|
|
|
Total
U.S. Domestic Package |
|
9.64 |
|
|
9.45 |
|
|
0.19 |
|
|
2.0 |
% |
|
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
|
Domestic |
|
6.27 |
|
|
5.90 |
|
|
0.37 |
|
|
6.3 |
% |
|
|
|
Export |
|
29.00 |
|
|
30.35 |
|
|
(1.35 |
) |
|
-4.4 |
% |
|
|
|
Total
International Package |
|
16.52 |
|
|
16.21 |
|
|
0.31 |
|
|
1.9 |
% |
|
|
|
Consolidated |
$ |
10.77 |
|
$ |
10.49 |
|
$ |
0.28 |
|
|
2.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Supplemental Analysis of Currency and UPS
Freight |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue Per
Piece |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Currency |
|
|
|
|
|
|
September 30 |
|
|
|
|
|
Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
$ |
6.27 |
|
$ |
5.90 |
|
|
6.3 |
% |
|
$ |
(0.27 |
) |
|
$ |
6.00 |
|
1.7 |
% |
|
|
|
Export |
|
29.00 |
|
|
30.35 |
|
|
-4.4 |
% |
|
|
0.47 |
|
|
|
29.47 |
|
-2.9 |
% |
|
|
|
Total
International Package |
$ |
16.52 |
|
$ |
16.21 |
|
|
1.9 |
% |
|
$ |
0.06 |
|
|
$ |
16.58 |
|
2.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
$ |
10.77 |
|
$ |
10.49 |
|
|
2.7 |
% |
|
$ |
0.01 |
|
|
$ |
10.78 |
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Currency |
|
|
|
|
|
|
September 30 |
|
|
|
|
|
Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
9,649 |
|
$ |
9,289 |
|
|
3.9 |
% |
|
$ |
- |
|
|
$ |
9,649 |
|
3.9 |
% |
|
|
|
International Package |
|
3,364 |
|
|
3,024 |
|
|
11.2 |
% |
|
|
12 |
|
|
|
3,376 |
|
11.6 |
% |
|
|
|
Supply
Chain & Freight |
|
2,965 |
|
|
2,615 |
|
|
13.4 |
% |
|
|
(9 |
) |
|
|
2,956 |
|
13.0 |
% |
|
|
|
Total
revenue |
$ |
15,978 |
|
$ |
14,928 |
|
|
7.0 |
% |
|
$ |
3 |
|
|
$ |
15,981 |
|
7.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Operating
Profit |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Currency |
|
|
|
|
|
|
September 30 |
|
|
|
|
|
Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
Operating
profit (in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
1,182 |
|
$ |
1,252 |
|
|
-5.6 |
% |
|
$ |
- |
|
|
$ |
1,182 |
|
-5.6 |
% |
|
|
|
International Package |
|
627 |
|
|
576 |
|
|
8.9 |
% |
|
|
62 |
|
|
|
689 |
|
19.6 |
% |
|
|
|
Supply
Chain & Freight |
|
226 |
|
|
206 |
|
|
9.7 |
% |
|
|
- |
|
|
|
226 |
|
9.7 |
% |
|
|
|
Total
operating profit |
$ |
2,035 |
|
$ |
2,034 |
|
|
0.0 |
% |
|
$ |
62 |
|
|
$ |
2,097 |
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UPS Freight Selected Operating Data - Third
Quarter |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
September 30 |
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
LTL revenue (in
millions) |
$ |
673 |
|
$ |
616 |
|
$ |
57 |
|
|
|
9.3 |
% |
|
|
|
|
|
|
|
LTL revenue per LTL
hundredweight |
$ |
24.47 |
|
$ |
23.63 |
|
$ |
0.84 |
|
|
|
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL shipments (in
thousands) |
|
2,589 |
|
|
2,551 |
|
|
38 |
|
|
|
1.5 |
% |
|
|
|
|
|
|
|
LTL shipments per day
(in thousands) |
|
41.1 |
|
|
39.9 |
|
|
1.2 |
|
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL gross weight hauled
(in millions of pounds) |
|
2,750 |
|
|
2,607 |
|
|
143 |
|
|
|
5.5 |
% |
|
|
|
|
|
|
|
LTL weight per shipment
(in pounds) |
|
1,062 |
|
|
1,022 |
|
|
40 |
|
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays |
|
63 |
|
|
64 |
|
|
(1 |
) |
|
|
-1.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detail of Other Operating Expenses - Third
Quarter |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions) |
Three Months Ended |
|
|
|
|
|
|
|
September 30 |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
Repairs and
maintenance |
$ |
398 |
|
$ |
386 |
|
$ |
12 |
|
3.1 |
% |
|
|
|
Depreciation and
amortization |
|
572 |
|
|
554 |
|
|
18 |
|
3.2 |
% |
|
|
|
Purchased
transportation |
|
2,652 |
|
|
2,212 |
|
|
440 |
|
19.9 |
% |
|
|
|
Fuel |
|
636 |
|
|
541 |
|
|
95 |
|
17.6 |
% |
|
|
|
Other occupancy |
|
282 |
|
|
248 |
|
|
34 |
|
13.7 |
% |
|
|
|
Other expenses |
|
1,182 |
|
|
1,096 |
|
|
86 |
|
7.8 |
% |
|
|
|
Total other operating
expenses |
$ |
5,722 |
|
$ |
5,037 |
|
$ |
685 |
|
13.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Share and Share Data - Third
Quarter |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
(amounts
in millions, except per share data) |
|
|
September 30 |
|
|
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
$ |
1,264 |
|
$ |
1,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares |
|
|
|
864 |
|
|
876 |
|
|
|
|
|
Deferred
compensation obligations |
|
|
|
1 |
|
|
1 |
|
|
|
|
|
Vested
portion of restricted units |
|
|
|
4 |
|
|
3 |
|
|
|
|
|
Denominator for basic
earnings per share |
|
|
|
869 |
|
|
880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities: |
|
|
|
|
|
|
|
|
|
|
Restricted units |
|
|
|
4 |
|
|
4 |
|
|
|
|
|
Stock
options |
|
|
|
1 |
|
|
1 |
|
|
|
|
|
Denominator for diluted
earnings per share |
|
|
|
874 |
|
|
885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
|
$ |
1.45 |
|
$ |
1.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
|
$ |
1.45 |
|
$ |
1.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detail of shares outstanding as of September 30,
2017: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A shares |
|
|
|
175 |
|
|
|
|
|
|
|
Class B shares |
|
|
|
687 |
|
|
|
|
|
|
|
Total
shares outstanding |
|
|
|
862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Selected Financial Data - Year to
Date |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
September 30 |
|
|
|
|
|
2017 |
|
|
|
2016 |
|
|
Change |
|
% Change |
|
|
(amounts
in millions, except per share data) |
|
|
|
|
|
|
|
|
|
Statement of
Income Data: |
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
$ |
28,929 |
|
|
$ |
27,388 |
|
|
$ |
1,541 |
|
|
5.6 |
% |
|
|
International Package |
|
9,585 |
|
|
|
9,015 |
|
|
|
570 |
|
|
6.3 |
% |
|
|
Supply
Chain & Freight |
|
8,529 |
|
|
|
7,572 |
|
|
|
957 |
|
|
12.6 |
% |
|
|
Total
revenue |
|
47,043 |
|
|
|
43,975 |
|
|
|
3,068 |
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
24,457 |
|
|
|
23,448 |
|
|
|
1,009 |
|
|
4.3 |
% |
|
|
Other |
|
16,551 |
|
|
|
14,632 |
|
|
|
1,919 |
|
|
13.1 |
% |
|
|
Total
operating expenses |
|
41,008 |
|
|
|
38,080 |
|
|
|
2,928 |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit: |
|
|
|
|
|
|
|
|
|
U.S.
Domestic Package |
|
3,653 |
|
|
|
3,587 |
|
|
|
66 |
|
|
1.8 |
% |
|
|
International Package |
|
1,739 |
|
|
|
1,763 |
|
|
|
(24 |
) |
|
-1.4 |
% |
|
|
Supply
Chain & Freight |
|
643 |
|
|
|
545 |
|
|
|
98 |
|
|
18.0 |
% |
|
|
Total
operating profit |
|
6,035 |
|
|
|
5,895 |
|
|
|
140 |
|
|
2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
Investment income and other |
|
49 |
|
|
|
38 |
|
|
|
11 |
|
|
28.9 |
% |
|
|
Interest
expense |
|
(324 |
) |
|
|
(281 |
) |
|
|
(43 |
) |
|
15.3 |
% |
|
|
Total
other income (expense) |
|
(275 |
) |
|
|
(243 |
) |
|
|
(32 |
) |
|
13.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
5,760 |
|
|
|
5,652 |
|
|
|
108 |
|
|
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
1,954 |
|
|
|
1,982 |
|
|
|
(28 |
) |
|
-1.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
3,806 |
|
|
$ |
3,670 |
|
|
$ |
136 |
|
|
3.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net income as a
percentage of revenue |
|
8.1 |
% |
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
|
Basic
earnings per share |
$ |
4.36 |
|
|
$ |
4.15 |
|
|
$ |
0.21 |
|
|
5.1 |
% |
|
|
Diluted
earnings per share |
$ |
4.34 |
|
|
$ |
4.13 |
|
|
$ |
0.21 |
|
|
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
872 |
|
|
|
885 |
|
|
|
(13 |
) |
|
-1.5 |
% |
|
|
Diluted |
|
876 |
|
|
|
889 |
|
|
|
(13 |
) |
|
-1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
|
Selected Operating Data - Year to
Date |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
|
September 30 |
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
Next Day
Air |
$ |
5,183 |
|
$ |
4,918 |
|
$ |
265 |
|
|
5.4 |
% |
|
|
Deferred |
|
2,992 |
|
|
2,781 |
|
|
211 |
|
|
7.6 |
% |
|
|
Ground |
|
20,754 |
|
|
19,689 |
|
|
1,065 |
|
|
5.4 |
% |
|
|
Total
U.S. Domestic Package |
|
28,929 |
|
|
27,388 |
|
|
1,541 |
|
|
5.6 |
% |
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
Domestic |
|
1,906 |
|
|
1,804 |
|
|
102 |
|
|
5.7 |
% |
|
|
Export |
|
7,298 |
|
|
6,813 |
|
|
485 |
|
|
7.1 |
% |
|
|
Cargo and
Other |
|
381 |
|
|
398 |
|
|
(17 |
) |
|
-4.3 |
% |
|
|
Total
International Package |
|
9,585 |
|
|
9,015 |
|
|
570 |
|
|
6.3 |
% |
|
|
Supply Chain &
Freight: |
|
|
|
|
|
|
|
|
|
Forwarding and Logistics |
|
5,709 |
|
|
4,980 |
|
|
729 |
|
|
14.6 |
% |
|
|
Freight |
|
2,240 |
|
|
2,050 |
|
|
190 |
|
|
9.3 |
% |
|
|
Other |
|
580 |
|
|
542 |
|
|
38 |
|
|
7.0 |
% |
|
|
Total
Supply Chain & Freight |
|
8,529 |
|
|
7,572 |
|
|
957 |
|
|
12.6 |
% |
|
|
Consolidated |
$ |
47,043 |
|
$ |
43,975 |
|
$ |
3,068 |
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated volume (in
millions) |
|
3,572 |
|
|
3,435 |
|
|
137 |
|
|
4.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays |
|
191 |
|
|
192 |
|
|
(1 |
) |
|
-0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Package Volume (in thousands): |
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
Next Day
Air |
|
1,393 |
|
|
1,313 |
|
|
80 |
|
|
6.1 |
% |
|
|
Deferred |
|
1,246 |
|
|
1,195 |
|
|
51 |
|
|
4.3 |
% |
|
|
Ground |
|
13,069 |
|
|
12,652 |
|
|
417 |
|
|
3.3 |
% |
|
|
Total
U.S. Domestic Package |
|
15,708 |
|
|
15,160 |
|
|
548 |
|
|
3.6 |
% |
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
Domestic |
|
1,667 |
|
|
1,576 |
|
|
91 |
|
|
5.8 |
% |
|
|
Export |
|
1,327 |
|
|
1,155 |
|
|
172 |
|
|
14.9 |
% |
|
|
Total
International Package |
|
2,994 |
|
|
2,731 |
|
|
263 |
|
|
9.6 |
% |
|
|
Consolidated |
|
18,702 |
|
|
17,891 |
|
|
811 |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package: |
|
|
|
|
|
|
|
|
|
Next Day
Air |
$ |
19.48 |
|
$ |
19.51 |
|
$ |
(0.03 |
) |
|
-0.2 |
% |
|
|
Deferred |
|
12.57 |
|
|
12.12 |
|
|
0.45 |
|
|
3.7 |
% |
|
|
Ground |
|
8.31 |
|
|
8.11 |
|
|
0.20 |
|
|
2.5 |
% |
|
|
Total
U.S. Domestic Package |
|
9.64 |
|
|
9.41 |
|
|
0.23 |
|
|
2.4 |
% |
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
Domestic |
|
5.99 |
|
|
5.96 |
|
|
0.03 |
|
|
0.5 |
% |
|
|
Export |
|
28.79 |
|
|
30.72 |
|
|
(1.93 |
) |
|
-6.3 |
% |
|
|
Total
International Package |
|
16.10 |
|
|
16.43 |
|
|
(0.33 |
) |
|
-2.0 |
% |
|
|
Consolidated |
$ |
10.68 |
|
$ |
10.48 |
|
$ |
0.20 |
|
|
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Supplemental Analysis of Currency and UPS
Freight |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue Per
Piece |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
Currency |
|
|
|
|
|
|
September 30 |
|
|
|
|
|
Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue
Per Piece: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
Package: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
$ |
5.99 |
|
$ |
5.96 |
|
|
0.5 |
% |
|
$ |
0.12 |
|
|
$ |
6.11 |
|
2.5 |
% |
|
|
|
Export |
|
28.79 |
|
|
30.72 |
|
|
-6.3 |
% |
|
|
1.23 |
|
|
|
30.02 |
|
-2.3 |
% |
|
|
|
Total
International Package |
$ |
16.10 |
|
$ |
16.43 |
|
|
-2.0 |
% |
|
$ |
0.61 |
|
|
$ |
16.71 |
|
1.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
$ |
10.68 |
|
$ |
10.48 |
|
|
1.9 |
% |
|
$ |
0.09 |
|
|
$ |
10.77 |
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Revenue |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
Currency |
|
|
|
|
|
|
September 30 |
|
|
|
|
|
Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
Revenue (in
millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package |
$ |
28,929 |
|
$ |
27,388 |
|
|
5.6 |
% |
|
$ |
- |
|
|
$ |
28,929 |
|
5.6 |
% |
|
|
|
International Package |
|
9,585 |
|
|
9,015 |
|
|
6.3 |
% |
|
|
352 |
|
|
|
9,937 |
|
10.2 |
% |
|
|
|
Supply
Chain & Freight |
|
8,529 |
|
|
7,572 |
|
|
12.6 |
% |
|
|
15 |
|
|
|
8,544 |
|
12.8 |
% |
|
|
|
Total
revenue |
$ |
47,043 |
|
$ |
43,975 |
|
|
7.0 |
% |
|
$ |
367 |
|
|
$ |
47,410 |
|
7.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency Neutral Operating
Profit |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
Currency |
|
|
|
|
|
|
September 30 |
|
|
|
|
|
Neutral |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
% Change |
|
Currency |
|
2017* |
|
% Change |
|
|
|
Operating
profit (in millions): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Domestic
Package |
$ |
3,653 |
|
$ |
3,587 |
|
|
1.8 |
% |
|
$ |
- |
|
|
$ |
3,653 |
|
1.8 |
% |
|
|
|
International Package |
|
1,739 |
|
|
1,763 |
|
|
-1.4 |
% |
|
|
295 |
|
|
|
2,034 |
|
15.4 |
% |
|
|
|
Supply
Chain & Freight |
|
643 |
|
|
545 |
|
|
18.0 |
% |
|
|
1 |
|
|
|
644 |
|
18.2 |
% |
|
|
|
Total
operating profit |
$ |
6,035 |
|
$ |
5,895 |
|
|
2.4 |
% |
|
$ |
296 |
|
|
$ |
6,331 |
|
7.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Amounts
adjusted for period over period foreign currency exchange rate and
hedging differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UPS Freight Selected Operating Data - Year to
Date |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
September 30 |
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
LTL revenue (in
millions) |
$ |
1,943 |
|
$ |
1,780 |
|
$ |
163 |
|
|
|
9.2 |
% |
|
|
|
|
|
|
|
LTL revenue per LTL
hundredweight |
$ |
23.90 |
|
$ |
23.46 |
|
$ |
0.44 |
|
|
|
1.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL shipments (in
thousands) |
|
7,739 |
|
|
7,507 |
|
|
232 |
|
|
|
3.1 |
% |
|
|
|
|
|
|
|
LTL shipments per day
(in thousands) |
|
40.5 |
|
|
39.1 |
|
|
1.4 |
|
|
|
3.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTL gross weight hauled
(in millions of pounds) |
|
8,131 |
|
|
7,589 |
|
|
542 |
|
|
|
7.1 |
% |
|
|
|
|
|
|
|
LTL weight per shipment
(in pounds) |
|
1,051 |
|
|
1,011 |
|
|
40 |
|
|
|
4.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays |
|
191 |
|
|
192 |
|
|
(1 |
) |
|
|
-0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
United Parcel Service, Inc. |
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
Detail of Other Operating Expenses - Year to
Date |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
(in millions) |
Nine Months Ended |
|
|
|
|
|
|
|
|
September 30 |
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
Change |
|
% Change |
|
|
|
Repairs and
Maintenance |
$ |
1,180 |
|
$ |
1,150 |
|
$ |
30 |
|
2.6 |
% |
|
|
|
Depreciation and
Amortization |
|
1,688 |
|
|
1,661 |
|
|
27 |
|
1.6 |
% |
|
|
|
Purchased
Transportation |
|
7,461 |
|
|
6,306 |
|
|
1,155 |
|
18.3 |
% |
|
|
|
Fuel |
|
1,873 |
|
|
1,480 |
|
|
393 |
|
26.6 |
% |
|
|
|
Other Occupancy |
|
845 |
|
|
762 |
|
|
83 |
|
10.9 |
% |
|
|
|
Other Expenses |
|
3,504 |
|
|
3,273 |
|
|
231 |
|
7.1 |
% |
|
|
|
Total Other Operating
Expenses |
$ |
16,551 |
|
$ |
14,632 |
|
$ |
1,919 |
|
13.1 |
% |
|
|
|
|
|
|
|
|
|
|
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|
|
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|
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|
|
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|
|
|
Earnings Per Share and Share Data - Year to
Date |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
|
(amounts
in millions, except per share data) |
|
|
September 30 |
|
|
|
|
|
|
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
$ |
3,806 |
|
$ |
3,670 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares |
|
|
|
867 |
|
|
880 |
|
|
|
|
|
Deferred
compensation obligations |
|
|
|
1 |
|
|
1 |
|
|
|
|
|
Vested
portion of restricted units |
|
|
|
4 |
|
|
4 |
|
|
|
|
|
Denominator for basic
earnings per share |
|
|
|
872 |
|
|
885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of dilutive
securities: |
|
|
|
|
|
|
|
|
|
|
Restricted units |
|
|
|
3 |
|
|
3 |
|
|
|
|
|
Stock
options |
|
|
|
1 |
|
|
1 |
|
|
|
|
|
Denominator for diluted
earnings per share |
|
|
|
876 |
|
|
889 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share |
|
|
$ |
4.36 |
|
$ |
4.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
|
$ |
4.34 |
|
$ |
4.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. |
Consolidated Balance Sheets - September 30,
2017 and December 31, 2016 |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in millions) |
|
September 30, |
|
December 31, |
|
|
|
2017 |
|
|
2016 |
|
ASSETS |
|
|
|
|
|
Current
Assets: |
|
|
|
|
|
Cash and marketable securities |
|
$ |
4,461 |
|
$ |
4,567 |
|
Other current assets |
|
|
8,449 |
|
|
9,282 |
|
Total Current Assets |
|
|
12,910 |
|
|
13,849 |
|
Property,
Plant and Equipment |
|
|
47,204 |
|
|
43,674 |
|
Less accumulated depreciation and amortization |
|
|
26,216 |
|
|
24,874 |
|
|
|
20,988 |
|
|
18,800 |
|
Other
Assets |
|
|
7,458 |
|
|
7,728 |
|
|
$ |
41,356 |
|
$ |
40,377 |
|
|
|
|
|
|
LIABILITIES
AND SHAREOWNERS' EQUITY |
|
|
|
|
|
Current
Liabilities |
|
$ |
12,167 |
|
$ |
11,730 |
|
Long-Term
Debt |
|
|
14,355 |
|
|
12,394 |
|
Pension and
Postretirement Benefit Obligations |
|
|
10,075 |
|
|
12,694 |
|
Deferred
Taxes, Credits and Other Liabilities |
|
|
3,220 |
|
|
3,130 |
|
Shareowners' Equity |
|
|
1,539 |
|
|
429 |
|
|
$ |
41,356 |
|
$ |
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) |
|
September 30 |
|
|
Cash flows from
operating activities |
|
$ |
4,418 |
|
|
|
Cash flows used in
investing activities |
|
|
(3,618 |
) |
|
Cash flows used in
financing activities |
|
|
(914 |
) |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
|
56 |
|
|
Net (decrease) in cash
and cash equivalents |
|
$ |
(58 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Free Cash Flow (non-GAAP
measure) |
|
|
|
|
|
Preliminary |
|
|
Year-to-Date |
|
(amounts in
millions) |
|
September 30 |
|
|
Cash flows from
operating activities |
|
$ |
4,418 |
|
|
|
Capital
expenditures |
|
|
(3,708 |
) |
|
|
Proceeds from disposals
of PP&E |
|
|
18 |
|
|
|
Net change in finance
receivables |
|
|
(1 |
) |
|
|
Other investing
activities |
|
|
20 |
|
|
|
Free cash
flow (non-GAAP measure) |
|
$ |
747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts are subject to
reclassification. |
|
|
|
|
|
United Parcel Service, Inc. |
|
Aircraft Fleet - As of September 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 |
2 |
- |
1 |
- |
|
Airbus A300-600 |
52 |
- |
- |
- |
|
Boeing MD-11 |
37 |
- |
- |
- |
|
Boeing 747-400F |
11 |
- |
- |
- |
|
Boeing 747-400BCF |
2 |
- |
- |
- |
|
Boeing 747-8F |
1 |
- |
13 |
14 |
|
Other |
- |
297 |
- |
- |
|
|
|
|
|
|
|
Total |
239 |
297 |
14 |
14 |
|
|
|
|
|
|
|
Contacts: |
Steve
Gaut, Public Relations |
|
404-828-8787 |
|
|
|
Scott
Childress, Investor Relations |
|
404-828-7957 |
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