U.S. Domestic Profit Climbs 12%; Economic Uncertainty Dampens
Expectations
ATLANTA--(BUSINESS WIRE)--Jul. 24, 2012--
UPS (NYSE:UPS) today announced second quarter 2012 diluted earnings per
share of $1.15, a 7.5% improvement over the 2011 adjusted results. U.S.
Domestic operating profit expanded $122 million or 12% over the
prior-year period. On a reported basis, diluted earnings per share
increased 5.5% and U.S. Domestic operating profit rose 14%.
“Increasing uncertainty in the United States, continuing weakness in
Asia exports and the debt crisis in Europe are impacting projections of
economic expansion,” said Scott Davis, UPS chairman and CEO. “Throughout
its history, UPS has maintained its strength in all economic cycles and
we are making the adjustments necessary to respond to today’s
challenging conditions.”
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|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
Consolidated Results
|
|
|
2Q 2012
|
|
|
2Q 2011
|
|
|
2Q 2011
|
Revenue
|
|
|
$13.35
|
|
B
|
|
|
$
|
13.19
|
|
B
|
|
|
|
|
|
|
Operating profit
|
|
|
$1.79
|
|
B
|
|
|
$
|
1.75
|
|
B
|
|
|
$
|
1.71
|
|
B
|
Operating margin
|
|
|
|
13.4
|
|
%
|
|
|
|
13.2
|
|
%
|
|
|
|
13.0
|
|
%
|
Average volume per day
|
|
|
|
15.4
|
|
M
|
|
|
|
14.9
|
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M
|
|
|
|
|
|
|
Diluted earnings per share
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$1.15
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$
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1.09
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$
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1.07
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|
UPS, the Official Logistics and Express Delivery Supporter of the 2012
London Olympic and Paralympic Games, has been busy preparing for the
world’s largest peacetime logistical undertaking. The Games provide UPS
with a prime opportunity to showcase its expertise on a global stage
while handling more than 30 million items for these events.
During the quarter, UPS made several announcements regarding its
proposal to acquire TNT Express. Plans for financing the purchase were
disclosed in May and the formal Offer Memorandum was filed in June.
Earlier this month, the company announced it was moving to a Phase II
review as there are certain areas that the European Commission requires
more time to analyze.
UPS expects to close on the transaction during the fourth quarter. The
complementary strengths of both companies will create a customer-focused
platform delivering unparalleled access to the world.
Cash Position
For the six months ending June 30, UPS generated $3 billion in free cash
flow, an increase of more than $600 million over the same period last
year. Capital expenditures were $949 million. UPS repurchased 11.3
million shares for approximately $870 million and paid dividends
totaling $1.1 billion, a 9.6% increase per share over the prior year.
UPS ended the quarter with $7.3 billion in cash and marketable
securities as it prepares to complete the acquisition of TNT Express.
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|
|
|
|
|
|
Adjusted
|
U.S. Domestic Package
|
|
|
2Q 2012
|
|
|
2Q 2011
|
|
2Q 2011
|
Revenue
|
|
|
$
|
8.06
|
|
B
|
|
|
$
|
7.74
|
|
B
|
|
|
|
|
Operating profit
|
|
|
$
|
1,134
|
|
M
|
|
|
$
|
997
|
|
M
|
|
$
|
1,012
|
|
M
|
Operating margin
|
|
|
|
14.1
|
|
%
|
|
|
|
12.9
|
|
%
|
|
|
13.1
|
|
%
|
Average volume per day
|
|
|
|
13.1
|
|
M
|
|
|
|
12.6
|
|
M
|
|
|
|
|
U.S. Domestic revenue increased 4.1% over the prior-year period, driven
by a 3.5% gain in package volume. Operating profit jumped more than 12%
over 2011 adjusted results. Operating margin expanded 100 basis points
to 14.1%, aided by volume growth, improved efficiency, higher base rates
and a benefit from the timing of the fuel surcharge.
On a reported basis, operating profit improved 14% and operating margin
climbed 120 basis points over the prior-year period.
Volume grew across all products as ground rose 3%, UPS Next Day Air®
increased 5% and deferred air climbed 8.6%. The majority of the
improvement was driven by large e-commerce customers shipping low-weight
residential packages.
Average revenue per package increased 0.6%, as higher base rates were
mostly offset by changes in customer and product mix.
International Package
|
|
|
2Q 2012
|
|
|
|
2Q 2011
|
Revenue
|
|
|
$3.01
|
|
B
|
|
|
|
$3.14
|
|
B
|
Operating profit
|
|
|
$454
|
|
M
|
|
|
|
$505
|
|
M
|
Operating margin
|
|
|
|
15.1
|
|
%
|
|
|
|
|
16.1
|
|
%
|
Average volume per day
|
|
|
|
2.3
|
|
M
|
|
|
|
|
2.3
|
|
M
|
Revenue was $3 billion as the segment remains under pressure due to
weaker global economies and reductions in exports from Asia. Currency
fluctuations also had a negative impact.
In this challenging environment, operating profit was $454 million. The
operating margin of 15.1% remains the best in the industry.
Export volume increased 0.8% over the same quarter last year. European
growth was mostly offset by double-digit declines in exports from Asia
to the U.S. and Europe. Non-U.S. Domestic volume, down 3.2%, reflected
weaker economic conditions and continued yield improvement initiatives.
Average revenue per piece was down 2.4%, although on a currency-neutral
basis it was up 2.1%.
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|
|
|
|
|
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|
|
Adjusted
|
|
|
Supply Chain & Freight
|
|
|
2Q 2012
|
|
|
|
|
2Q 2011
|
|
|
|
|
2Q 2011
|
|
|
Revenue
|
|
|
$2.28
|
|
B
|
|
|
$2.32
|
|
B
|
|
|
|
|
|
Operating profit
|
|
|
$202
|
|
M
|
|
|
$243
|
|
M
|
|
|
$195
|
|
M
|
Operating margin
|
|
|
|
8.9
|
|
%
|
|
|
|
10.5
|
|
%
|
|
|
|
8.4
|
|
%
|
All business units contributed to the strong operating profit of $202
million in the Supply Chain and Freight segment. Operating margin
achieved a new high of 8.9%.
Total revenue declined 1.6% to $2.28 billion due to slowing
International Air Freight demand and lower pricing. Forwarding continues
to experience pressure on pricing, especially out of Asia, as excess
capacity in the marketplace continues. Operating profit was strong due
to effective revenue management and cost controls.
The Distribution business experienced revenue growth driven by
healthcare and e-commerce customers. The continued investment in
technology and infrastructure to support the company’s healthcare
initiative was a slight drag on operating profit.
At UPS Freight, revenue was flat as lower tonnage was offset by higher
yields. The business unit did experience operating profit improvement
and margin expansion.
Outlook
“The company’s performance was mixed during the second quarter,” said
Kurt Kuehn, UPS’s chief financial officer. “The results in the U.S.
Domestic and Supply Chain and Freight segments were partially offset by
the weakness in International.
“As we look toward the second half of the year, customers are more
concerned as greater uncertainty exists. Additionally, economic growth
expectations have come down,” Kuehn continued. “Consequently, we are
reducing our guidance for 2012 diluted earnings per share to a range of
$4.50 to $4.70, an increase of 3%-to-8% over 2011 adjusted results.”
UPS (NYSE:UPS) is a global leader in logistics, offering a broad range
of solutions for the transportation of packages and freight, including
innovative delivery options for the global consumer market; the
facilitation of international trade, and the deployment of 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
and its corporate blog can be found at blog.ups.com. To get UPS news
direct, visit pressroom.ups.com/RSS.
EDITOR’S NOTE:
UPS Chairman and CEO Scott Davis and CFO Kurt Kuehn will discuss second
quarter results with investors and analysts during a conference call at
8:30 a.m. EDT today. That call is open to listeners through a live
Webcast. To access the call, go to www.investors.ups.com
and click on “Earnings Webcast.”
UPS routinely posts investor announcements on its web site -- www.investors.ups.com
-- and encourages those interested in the company to check there
frequently.
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.” We believe
that these adjusted measures provide meaningful information to assist
investors and analysts in understanding our financial results and
assessing our prospects for future performance. We believe these
adjusted financial measures are important indicators of our recurring
operations because they exclude items that may not be indicative of or
are unrelated to our core operating results, and provide a better
baseline for analyzing trends in our underlying businesses. Furthermore,
we use these adjusted financial measures to determine awards for our
management personnel under our incentive compensation plans.
In the second quarter of 2011, we recorded certain real estate
transactions, including a $15 million pre-tax loss for U.S. Domestic
Package segment and a $48 million pre-tax gain in the Supply Chain &
Freight segment. We presented second quarter and year-to-date 2011
operating profit, operating margin, pre-tax income, net income and
earnings per share excluding the impact of these items as we believe
these adjusted measures better enable shareowners to focus on
period-over-period operating performance. The underlying matters that
produced these charges were unique, and we do not believe they are
reflective of the types of charges that will affect future results.
Because non-GAAP financial measures are not standardized, it may not be
possible to compare these financial measures with other companies'
non-GAAP financial measures having the same or similar names. These
adjusted financial measures should not be considered in isolation or as
a substitute for GAAP operating profit, operating margin, net income and
earnings per share, the most directly comparable GAAP financial
measures. These non-GAAP financial measures reflect an additional way of
viewing aspects of our operations that, when viewed with our GAAP
results and the preceding reconciliations to corresponding GAAP
financial measures, provide a more complete understanding of our
business. We strongly encourage investors to review our financial
statements and publicly-filed reports in their entirety and not to rely
on any single financial measure.
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, our competitive environment, strikes,
work stoppages and slowdowns, increases 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.
United Parcel Service, Inc.
|
Selected Financial Data - Second Quarter
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
June 30,
|
|
|
Change
|
|
|
2012
|
|
2011
|
|
|
$
|
|
%
|
(amounts in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
Statement of Income Data:
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
U.S. Domestic Package
|
|
$
|
8,058
|
|
|
$
|
7,737
|
|
|
|
$
|
321
|
|
|
4.1
|
%
|
International Package
|
|
|
3,014
|
|
|
|
3,139
|
|
|
|
|
(125
|
)
|
|
-4.0
|
%
|
Supply Chain & Freight
|
|
|
2,277
|
|
|
|
2,315
|
|
|
|
|
(38
|
)
|
|
-1.6
|
%
|
Total revenue
|
|
|
13,349
|
|
|
|
13,191
|
|
|
|
|
158
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
6,747
|
|
|
|
6,636
|
|
|
|
|
111
|
|
|
1.7
|
%
|
Other
|
|
|
4,812
|
|
|
|
4,810
|
|
|
|
|
2
|
|
|
0.0
|
%
|
Total operating expenses
|
|
|
11,559
|
|
|
|
11,446
|
|
|
|
|
113
|
|
|
1.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating profit:
|
|
|
|
|
|
|
|
|
|
U.S. Domestic Package
|
|
|
1,134
|
|
|
|
997
|
|
|
|
|
137
|
|
|
13.7
|
%
|
International Package
|
|
|
454
|
|
|
|
505
|
|
|
|
|
(51
|
)
|
|
-10.1
|
%
|
Supply Chain & Freight
|
|
|
202
|
|
|
|
243
|
|
|
|
|
(41
|
)
|
|
-16.9
|
%
|
Total operating profit
|
|
|
1,790
|
|
|
|
1,745
|
|
|
|
|
45
|
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Investment income
|
|
|
6
|
|
|
|
9
|
|
|
|
|
(3
|
)
|
|
-33.3
|
%
|
Interest expense
|
|
|
(92
|
)
|
|
|
(83
|
)
|
|
|
|
(9
|
)
|
|
10.8
|
%
|
Total other income (expense)
|
|
|
(86
|
)
|
|
|
(74
|
)
|
|
|
|
(12
|
)
|
|
16.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
1,704
|
|
|
|
1,671
|
|
|
|
|
33
|
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
588
|
|
|
|
579
|
|
|
|
|
9
|
|
|
1.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,116
|
|
|
$
|
1,092
|
|
|
|
$
|
24
|
|
|
2.2
|
%
|
|
|
|
|
|
|
|
|
|
|
Net income as a percentage of revenue
|
|
|
8.4
|
%
|
|
|
8.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
1.16
|
|
|
$
|
1.11
|
|
|
|
$
|
0.05
|
|
|
4.5
|
%
|
Diluted earnings per share
|
|
$
|
1.15
|
|
|
$
|
1.09
|
|
|
|
$
|
0.06
|
|
|
5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
962
|
|
|
|
988
|
|
|
|
|
(26
|
)
|
|
-2.6
|
%
|
Diluted
|
|
|
971
|
|
|
|
998
|
|
|
|
|
(27
|
)
|
|
-2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
As adjusted income data:
|
|
|
|
|
|
|
|
|
|
Operating profit:
|
|
|
|
|
|
|
|
|
|
U.S. Domestic Package (1)
|
|
$
|
1,134
|
|
|
$
|
1,012
|
|
|
|
$
|
122
|
|
|
12.1
|
%
|
International Package
|
|
|
454
|
|
|
|
505
|
|
|
|
|
(51
|
)
|
|
-10.1
|
%
|
Supply Chain & Freight (1)
|
|
|
202
|
|
|
|
195
|
|
|
|
|
7
|
|
|
3.6
|
%
|
Total operating profit
|
|
|
1,790
|
|
|
|
1,712
|
|
|
|
|
78
|
|
|
4.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes (1)
|
|
$
|
1,704
|
|
|
$
|
1,638
|
|
|
|
$
|
66
|
|
|
4.0
|
%
|
Net income (2)
|
|
$
|
1,116
|
|
|
$
|
1,072
|
|
|
|
$
|
44
|
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (2)
|
|
$
|
1.16
|
|
|
$
|
1.09
|
|
|
|
$
|
0.07
|
|
|
6.4
|
%
|
Diluted earnings per share (2)
|
|
$
|
1.15
|
|
|
$
|
1.07
|
|
|
|
$
|
0.08
|
|
|
7.5
|
%
|
(1)
|
|
Second quarter 2011 operating profit and consolidated income before
income taxes excluded the impact of gains and losses on certain real
estate transactions, including a $15 million loss in the U.S.
Domestic Package segment and a $48 million gain in the Supply Chain
& Freight segment.
|
|
|
|
(2)
|
|
Second quarter 2011 net income and earnings per share amounts
excluded the after-tax impact of the U.S. Domestic Package and
Supply Chain & Freight real estate transactions described in (1),
which total a combined $20 million.
|
|
|
|
Certain prior year amounts have been reclassified to conform to
the current year presentation.
|
|
|
United Parcel Service, Inc.
|
Selected Operating Data - Second Quarter
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
Change
|
|
|
|
2012
|
|
2011
|
|
|
$ / #
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (in millions):
|
|
|
|
|
|
|
|
|
|
|
U.S. Domestic Package:
|
|
|
|
|
|
|
|
|
|
|
Next Day Air
|
|
|
$
|
1,609
|
|
$
|
1,562
|
|
|
$
|
47
|
|
|
3.0
|
%
|
Deferred
|
|
|
|
804
|
|
|
764
|
|
|
|
40
|
|
|
5.2
|
%
|
Ground
|
|
|
|
5,645
|
|
|
5,411
|
|
|
|
234
|
|
|
4.3
|
%
|
Total U.S. Domestic Package
|
|
|
|
8,058
|
|
|
7,737
|
|
|
|
321
|
|
|
4.1
|
%
|
International Package:
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
615
|
|
|
672
|
|
|
|
(57
|
)
|
|
-8.5
|
%
|
Export
|
|
|
|
2,252
|
|
|
2,316
|
|
|
|
(64
|
)
|
|
-2.8
|
%
|
Cargo
|
|
|
|
147
|
|
|
151
|
|
|
|
(4
|
)
|
|
-2.6
|
%
|
Total International Package
|
|
|
|
3,014
|
|
|
3,139
|
|
|
|
(125
|
)
|
|
-4.0
|
%
|
Supply Chain & Freight:
|
|
|
|
|
|
|
|
|
|
|
Forwarding and Logistics
|
|
|
|
1,485
|
|
|
1,539
|
|
|
|
(54
|
)
|
|
-3.5
|
%
|
Freight
|
|
|
|
660
|
|
|
660
|
|
|
|
-
|
|
|
0.0
|
%
|
Other
|
|
|
|
132
|
|
|
116
|
|
|
|
16
|
|
|
13.8
|
%
|
Total Supply Chain & Freight
|
|
|
|
2,277
|
|
|
2,315
|
|
|
|
(38
|
)
|
|
-1.6
|
%
|
Consolidated
|
|
|
$
|
13,349
|
|
$
|
13,191
|
|
|
$
|
158
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated volume (in millions)
|
|
|
|
983
|
|
|
957
|
|
|
|
26
|
|
|
2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays
|
|
|
|
64
|
|
|
64
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Package Volume (in thousands):
|
|
|
|
|
|
|
|
|
|
|
U.S. Domestic Package:
|
|
|
|
|
|
|
|
|
|
|
Next Day Air
|
|
|
|
1,231
|
|
|
1,172
|
|
|
|
59
|
|
|
5.0
|
%
|
Deferred
|
|
|
|
924
|
|
|
851
|
|
|
|
73
|
|
|
8.6
|
%
|
Ground
|
|
|
|
10,920
|
|
|
10,604
|
|
|
|
316
|
|
|
3.0
|
%
|
Total U.S. Domestic Package
|
|
|
|
13,075
|
|
|
12,627
|
|
|
|
448
|
|
|
3.5
|
%
|
International Package:
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
1,358
|
|
|
1,403
|
|
|
|
(45
|
)
|
|
-3.2
|
%
|
Export
|
|
|
|
923
|
|
|
916
|
|
|
|
7
|
|
|
0.8
|
%
|
Total International Package
|
|
|
|
2,281
|
|
|
2,319
|
|
|
|
(38
|
)
|
|
-1.6
|
%
|
Consolidated
|
|
|
|
15,356
|
|
|
14,946
|
|
|
|
410
|
|
|
2.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue Per Piece:
|
|
|
|
|
|
|
|
|
|
|
U.S. Domestic Package:
|
|
|
|
|
|
|
|
|
|
|
Next Day Air
|
|
|
$
|
20.42
|
|
$
|
20.82
|
|
|
$
|
(0.40
|
)
|
|
-1.9
|
%
|
Deferred
|
|
|
|
13.60
|
|
|
14.03
|
|
|
|
(0.43
|
)
|
|
-3.1
|
%
|
Ground
|
|
|
|
8.08
|
|
|
7.97
|
|
|
|
0.11
|
|
|
1.4
|
%
|
Total U.S. Domestic Package
|
|
|
|
9.63
|
|
|
9.57
|
|
|
|
0.06
|
|
|
0.6
|
%
|
International Package:
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
7.08
|
|
|
7.48
|
|
|
|
(0.40
|
)
|
|
-5.3
|
%
|
Export
|
|
|
|
38.12
|
|
|
39.51
|
|
|
|
(1.39
|
)
|
|
-3.5
|
%
|
Total International Package
|
|
|
|
19.64
|
|
|
20.13
|
|
|
|
(0.49
|
)
|
|
-2.4
|
%
|
Consolidated
|
|
|
$
|
11.12
|
|
$
|
11.21
|
|
|
$
|
(0.09
|
)
|
|
-0.8
|
%
|
Certain prior year amounts have been reclassified to conform to the
current year presentation.
|
|
United Parcel Service, Inc.
|
Selected Financial Data - Year to Date
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
June 30,
|
|
|
Change
|
|
|
2012
|
|
2011
|
|
|
$
|
|
%
|
(amounts in millions, except per share data)
|
|
|
|
|
|
|
|
|
|
Statement of Income Data:
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
U.S. Domestic Package
|
|
$
|
16,062
|
|
|
$
|
15,280
|
|
|
|
$
|
782
|
|
|
5.1
|
%
|
International Package
|
|
|
5,980
|
|
|
|
6,039
|
|
|
|
|
(59
|
)
|
|
-1.0
|
%
|
Supply Chain & Freight
|
|
|
4,443
|
|
|
|
4,454
|
|
|
|
|
(11
|
)
|
|
-0.2
|
%
|
Total revenue
|
|
|
26,485
|
|
|
|
25,773
|
|
|
|
|
712
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
13,582
|
|
|
|
13,198
|
|
|
|
|
384
|
|
|
2.9
|
%
|
Other
|
|
|
9,544
|
|
|
|
9,358
|
|
|
|
|
186
|
|
|
2.0
|
%
|
Total operating expenses
|
|
|
23,126
|
|
|
|
22,556
|
|
|
|
|
570
|
|
|
2.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Operating profit:
|
|
|
|
|
|
|
|
|
|
U.S. Domestic Package
|
|
|
2,129
|
|
|
|
1,877
|
|
|
|
|
252
|
|
|
13.4
|
%
|
International Package
|
|
|
862
|
|
|
|
958
|
|
|
|
|
(96
|
)
|
|
-10.0
|
%
|
Supply Chain & Freight
|
|
|
368
|
|
|
|
382
|
|
|
|
|
(14
|
)
|
|
-3.7
|
%
|
Total operating profit
|
|
|
3,359
|
|
|
|
3,217
|
|
|
|
|
142
|
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Investment income
|
|
|
12
|
|
|
|
20
|
|
|
|
|
(8
|
)
|
|
-40.0
|
%
|
Interest expense
|
|
|
(186
|
)
|
|
|
(168
|
)
|
|
|
|
(18
|
)
|
|
10.7
|
%
|
Total other income (expense)
|
|
|
(174
|
)
|
|
|
(148
|
)
|
|
|
|
(26
|
)
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
3,185
|
|
|
|
3,069
|
|
|
|
|
116
|
|
|
3.8
|
%
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
1,099
|
|
|
|
1,062
|
|
|
|
|
37
|
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,086
|
|
|
$
|
2,007
|
|
|
|
$
|
79
|
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
|
Net income as a percentage of revenue
|
|
|
7.9
|
%
|
|
|
7.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
2.17
|
|
|
$
|
2.03
|
|
|
|
$
|
0.14
|
|
|
6.9
|
%
|
Diluted earnings per share
|
|
$
|
2.15
|
|
|
$
|
2.01
|
|
|
|
$
|
0.14
|
|
|
7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
962
|
|
|
|
990
|
|
|
|
|
(28
|
)
|
|
-2.8
|
%
|
Diluted
|
|
|
972
|
|
|
|
1,000
|
|
|
|
|
(28
|
)
|
|
-2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
As adjusted income data:
|
|
|
|
|
|
|
|
|
|
Operating profit:
|
|
|
|
|
|
|
|
|
|
U.S. Domestic Package (1)
|
|
$
|
2,129
|
|
|
$
|
1,892
|
|
|
|
$
|
237
|
|
|
12.5
|
%
|
International Package
|
|
|
862
|
|
|
|
958
|
|
|
|
|
(96
|
)
|
|
-10.0
|
%
|
Supply Chain & Freight (1)
|
|
|
368
|
|
|
|
334
|
|
|
|
|
34
|
|
|
10.2
|
%
|
Total operating profit
|
|
|
3,359
|
|
|
|
3,184
|
|
|
|
|
175
|
|
|
5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes (1)
|
|
$
|
3,185
|
|
|
$
|
3,036
|
|
|
|
$
|
149
|
|
|
4.9
|
%
|
Net income (2)
|
|
$
|
2,086
|
|
|
$
|
1,987
|
|
|
|
$
|
99
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (2)
|
|
$
|
2.17
|
|
|
$
|
2.01
|
|
|
|
$
|
0.16
|
|
|
8.0
|
%
|
Diluted earnings per share (2)
|
|
$
|
2.15
|
|
|
$
|
1.99
|
|
|
|
$
|
0.16
|
|
|
8.0
|
%
|
(1) 2011 operating profit and consolidated income before income
taxes exclude the $33 million gain on certain real estate
transactions ($15 million loss in U.S. Domestic Package and a $48
million gain in Supply Chain & Freight).
|
|
(2) 2011 net income and earnings per share amounts exclude the
after-tax impact of the U.S. Domestic Package and Supply Chain &
Freight real estate transactions described in (1) which total a
combined $20 million.
|
|
Certain prior year amounts have been reclassified to conform to the
current year presentation.
|
|
|
United Parcel Service, Inc.
|
Selected Operating Data - Year to Date
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
Change
|
|
|
|
2012
|
|
2011
|
|
|
$/ #
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Revenue (in millions):
|
|
|
|
|
|
|
|
|
|
|
U.S. Domestic Package:
|
|
|
|
|
|
|
|
|
|
|
Next Day Air
|
|
|
$
|
3,166
|
|
$
|
3,057
|
|
|
$
|
109
|
|
|
3.6
|
%
|
Deferred
|
|
|
|
1,624
|
|
|
1,517
|
|
|
|
107
|
|
|
7.1
|
%
|
Ground
|
|
|
|
11,272
|
|
|
10,706
|
|
|
|
566
|
|
|
5.3
|
%
|
Total U.S. Domestic Package
|
|
|
|
16,062
|
|
|
15,280
|
|
|
|
782
|
|
|
5.1
|
%
|
International Package:
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
1,255
|
|
|
1,301
|
|
|
|
(46
|
)
|
|
-3.5
|
%
|
Export
|
|
|
|
4,447
|
|
|
4,447
|
|
|
|
-
|
|
|
0.0
|
%
|
Cargo
|
|
|
|
278
|
|
|
291
|
|
|
|
(13
|
)
|
|
-4.5
|
%
|
Total International Package
|
|
|
|
5,980
|
|
|
6,039
|
|
|
|
(59
|
)
|
|
-1.0
|
%
|
Supply Chain & Freight:
|
|
|
|
|
|
|
|
|
|
|
Forwarding and Logistics
|
|
|
|
2,909
|
|
|
2,968
|
|
|
|
(59
|
)
|
|
-2.0
|
%
|
Freight
|
|
|
|
1,278
|
|
|
1,264
|
|
|
|
14
|
|
|
1.1
|
%
|
Other
|
|
|
|
256
|
|
|
222
|
|
|
|
34
|
|
|
15.3
|
%
|
Total Supply Chain & Freight
|
|
|
|
4,443
|
|
|
4,454
|
|
|
|
(11
|
)
|
|
-0.2
|
%
|
Consolidated
|
|
|
$
|
26,485
|
|
$
|
25,773
|
|
|
$
|
712
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated volume (in millions)
|
|
|
|
1,981
|
|
|
1,914
|
|
|
|
67
|
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating weekdays
|
|
|
|
128
|
|
|
128
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Package Volume (in thousands):
|
|
|
|
|
|
|
|
|
|
|
U.S. Domestic Package:
|
|
|
|
|
|
|
|
|
|
|
Next Day Air
|
|
|
|
1,222
|
|
|
1,164
|
|
|
|
58
|
|
|
5.0
|
%
|
Deferred
|
|
|
|
954
|
|
|
873
|
|
|
|
81
|
|
|
9.3
|
%
|
Ground
|
|
|
|
10,981
|
|
|
10,611
|
|
|
|
370
|
|
|
3.5
|
%
|
Total U.S. Domestic Package
|
|
|
|
13,157
|
|
|
12,648
|
|
|
|
509
|
|
|
4.0
|
%
|
International Package:
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
1,384
|
|
|
1,398
|
|
|
|
(14
|
)
|
|
-1.0
|
%
|
Export
|
|
|
|
933
|
|
|
905
|
|
|
|
28
|
|
|
3.1
|
%
|
Total International Package
|
|
|
|
2,317
|
|
|
2,303
|
|
|
|
14
|
|
|
0.6
|
%
|
Consolidated
|
|
|
|
15,474
|
|
|
14,951
|
|
|
|
523
|
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Average Revenue Per Piece:
|
|
|
|
|
|
|
|
|
|
|
U.S. Domestic Package:
|
|
|
|
|
|
|
|
|
|
|
Next Day Air
|
|
|
$
|
20.24
|
|
$
|
20.52
|
|
|
$
|
(0.28
|
)
|
|
-1.4
|
%
|
Deferred
|
|
|
|
13.30
|
|
|
13.58
|
|
|
|
(0.28
|
)
|
|
-2.1
|
%
|
Ground
|
|
|
|
8.02
|
|
|
7.88
|
|
|
|
0.14
|
|
|
1.8
|
%
|
Total U.S. Domestic Package
|
|
|
|
9.54
|
|
|
9.44
|
|
|
|
0.10
|
|
|
1.1
|
%
|
International Package:
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
7.08
|
|
|
7.27
|
|
|
|
(0.19
|
)
|
|
-2.6
|
%
|
Export
|
|
|
|
37.24
|
|
|
38.39
|
|
|
|
(1.15
|
)
|
|
-3.0
|
%
|
Total International Package
|
|
|
|
19.23
|
|
|
19.50
|
|
|
|
(0.27
|
)
|
|
-1.4
|
%
|
Consolidated
|
|
|
$
|
10.99
|
|
$
|
10.99
|
|
|
$
|
-
|
|
|
0.0
|
%
|
Certain prior year amounts have been reclassified to conform to the
current year presentation.
|
|
United Parcel Service, Inc.
|
Reconciliation of Free Cash Flow
|
(unaudited)
|
|
|
|
|
|
Preliminary
|
|
|
Year-to-Date
|
(amounts in millions)
|
|
June 30, 2012
|
Net cash from operations
|
|
$ 3,850
|
Capital expenditures
|
|
(949)
|
Proceeds from disposals of PP&E
|
|
32
|
Net change in finance receivables
|
|
42
|
Other investing activities
|
|
4
|
Free cash flow
|
|
$ 2,979
|
|
|
|
|
|
|
Amounts are subject to reclassification.
|
Certain prior year amounts have been reclassified to conform to the
current year presentation.

Source: UPS
UPS Norman Black, Public Relations 404-828-7593 or Andy
Dolny, Investor Relations 404-828-8901
|