-
Global Deliveries in December Climb 20%
-
Higher U.S. Costs Driven by Surge in Shipments and Inclement Weather
-
E-commerce Pushes Quarterly Volume up 6.0% Worldwide
-
International Export Volume Up 9.5% per Day on Strong Europe Growth
-
2013: $6.1 Billion in Shareowner Distributions; $5.3 Billion in
Free Cash Flow
-
$500 Million of Increased Investments in Capacity Expansion
-
Announces Full-Year 2014 EPS Guidance of $5.05 to $5.30
ATLANTA--(BUSINESS WIRE)--Jan. 30, 2014--
UPS (NYSE:UPS) today released details regarding fourth quarter 2013
results. Diluted earnings per share totaled $1.25, a $0.07 decline from
2012 fourth quarter adjusted results. Average daily package volume
increased 6.0%, as total deliveries in December surged 20%.
Significantly higher than predicted volume and inclement weather
contributed to excess operating costs in the U.S., negatively affecting
results.
During the fourth quarter 2012, UPS reported a diluted earnings per
share loss of $1.83, due to an after-tax, non-cash charge of $3.0
billion to account for a mark-to-market pension adjustment.
“As the retail market shifts to a direct-to-consumer model, more and
more companies are leveraging UPS solutions,” said Scott Davis, UPS
chairman and CEO. “As a result, we experienced an unprecedented increase
in volume, exceeding even our most optimistic plans.
“The increased volume put a strain on our network, causing delays. In
response, UPS deployed additional people and equipment, placing a
greater emphasis on service than cost,” Davis explained. “UPS will make
the necessary investments and operational improvements to ensure we meet
the needs of the marketplace.”
The company expects full-year diluted earnings per share to be within a
range of $5.05 to $5.30, an increase of 11%-to-16% over 2013 adjusted
results.
UPS delivered 20 million packages per day during the fourth quarter.
Total shipments in 2013 increased to 4.3 billion, a 3.9% improvement
over 2012.
During the holiday period, global daily deliveries exceeded expectations
by surpassing 29 million packages on five days, with peak volume
exceeding 31 million on December 23. Also during this period, UPS
experienced 10 days with delivery volume that exceeded the company’s
previous high.
Cash Flow
For the year ended Dec. 31, UPS generated $5.3 billion in free cash
flow, producing a net income-to-cash conversion ratio of more than 120%.
The company paid dividends of $2.3 billion, an increase of nearly 9% per
share over the prior year, and repurchased more than 43 million shares
for approximately $3.8 billion.
U.S. Domestic Package
U.S. Domestic fourth quarter revenue improved 4.2% to $9.3 billion.
Daily package volume increased 5.6% with Deferred and Ground leading the
way, up 8.0% and 5.8% respectively.
Total revenue per package declined 1.3%, as lower fuel surcharges,
changes in product and customer mix, as well as higher service refunds,
contributed to the drop. Shippers continue to utilize the UPS portfolio,
choosing lower cost over faster delivery, as evidenced by more than 30%
growth in UPS SurePost.
Operating profit totaled $1.2 billion as additional costs associated
with a greater-than-expected surge in volume and weather led to a $178
million decline from the prior-year adjusted results. Increased
compensation and benefit costs reflected the deployment of additional
resources in an attempt to meet service commitments. During the quarter,
UPS exceeded seasonal hiring targets by more than 30,000, deploying a
total of 85,000 temporary employees. In addition, the company
experienced significantly higher purchased transportation expenses.
On a reported basis, the operating loss for the fourth quarter of 2012
totaled $1.8 billion as a result of the mark-to-market pension charge.
International Package
International revenue increased 5.3% to $3.4 billion on 8.8% growth in
daily package volume. UPS Export products rose 9.5% per day, driven
primarily by 13% growth in Europe and significant growth in the
Asia-to-Europe trade lane. Non-U.S. domestic products were up 8.2% with
strong growth in Poland, Italy, and Canada. During December, the segment
achieved a peak volume day above four million pieces and exceeded last
year’s high on 11 days.
Export yield declined 3.4% on a currency neutral basis, as a result of
lower fuel surcharges and customer preference for non-premium products.
Double-digit gains in Pan-European shipments also lowered revenue per
piece.
Operating profit improved 7.6% to $537 million. Operating margin
expanded 30 basis points to 15.9%, compared to last year’s adjusted
results.
On a reported basis, the operating loss for the fourth quarter of 2012
totaled $442 million as a result of the mark-to-market pension charge.
Supply Chain & Freight
Revenue in the segment fell 5.8% to $2.3 billion, due to declines in the
Freight Forwarding unit. Operating profit was flat compared to 2012
adjusted results, as improvements in Distribution offset declines in
Forwarding and UPS Freight.
On a reported basis, the operating loss for the fourth quarter of 2012
was $541 million as a result of the mark-to-market pension charge.
The Forwarding unit experienced a revenue decline resulting from
decreased tonnage and revenue per kilo, in International Air Freight.
The Ocean Freight business reported growth in shipments and operating
margin expansion.
Distribution revenue increased over the prior year period. The retail
and healthcare sectors contributed to the improved results. Global
footprint expanded during the year to 284 facilities, with more than 22
million square feet of space.
UPS Freight LTL revenue increased 2.3% over the prior year driven by LTL
tonnage and pricing improvements.
Outlook
The company announced plans to repurchase $2.7 billion of UPS shares
during 2014. Capital expenditures are anticipated to be approximately
$2.5 billion. This includes accelerated deployments in operational
technologies and over $500 million of increased investments in capacity
expansion and hub modernization.
“While the year ended on a challenging note, we are confident in our
ability to adapt and we expect much better results in 2014,” said Kurt
Kuehn, UPS chief financial officer. “UPS expects balanced profitability
growth across all segments in a slightly better economic environment,
resulting in full-year guidance of diluted earnings per share of $5.05
to $5.30, an 11%-to-16% increase over our 2013 adjusted results.”
UPS (NYSE:UPS) is a global leader in logistics, offering a broad range
of solutions including the transportation of packages and freight; 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 lead a
discussion on fourth quarter results with investors and analysts during
a conference call at 8:30 a.m. ET 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.
We supplemented the presentation of our fourth quarter and year-to-date
2013 and 2012 operating profit, operating margin, pre-tax income, net
income and earnings per share with similar measures that excluded the
impact of certain transactions. In the first quarter of 2013, we
recorded transactions related to our attempted acquisition of TNT
Express N.V. These items included the impact of (1) a pre-tax charge for
the TNT termination fee and transaction-related costs of $284 million
($177 million after-tax), and (2) a pre-tax currency gain realized upon
the liquidation of a foreign subsidiary of $245 million ($213 million
after-tax). During 2012, these items included the impact of
mark-to-market adjustments for pension expense recognized outside of a
10% corridor of $4.831 billion ($3.023 billion after-tax) and the
establishment of a withdrawal liability related to the New England
Teamsters and Trucking Industry Pension Fund of $896 million ($559
million after-tax). We believe these adjusted measures better enable
shareowners to focus on period-over-period operating performance.
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,
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.
|
|
|
|
|
United Parcel Service, Inc.
|
Selected Financial Data - Fourth Quarter
|
(unaudited)
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
December 31,
|
|
Change
|
|
|
2013
|
|
2012
|
|
$
|
|
%
|
(amounts in millions, except per share data)
|
|
|
|
|
|
|
|
|
Statement of Income Data:
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
U.S. Domestic Package
|
|
$
|
9,308
|
|
|
$
|
8,933
|
|
|
$
|
375
|
|
|
4.2
|
%
|
International Package
|
|
|
3,372
|
|
|
|
3,201
|
|
|
|
171
|
|
|
5.3
|
%
|
Supply Chain & Freight
|
|
|
2,296
|
|
|
|
2,437
|
|
|
|
(141
|
)
|
|
-5.8
|
%
|
Total revenue
|
|
|
14,976
|
|
|
|
14,571
|
|
|
|
405
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
7,647
|
|
|
|
11,943
|
|
|
|
(4,296
|
)
|
|
-36.0
|
%
|
Other
|
|
|
5,421
|
|
|
|
5,410
|
|
|
|
11
|
|
|
0.2
|
%
|
Total operating expenses
|
|
|
13,068
|
|
|
|
17,353
|
|
|
|
(4,285
|
)
|
|
-24.7
|
%
|
|
|
|
|
|
|
|
|
|
Operating profit (loss):
|
|
|
|
|
|
|
|
|
U.S. Domestic Package
|
|
|
1,200
|
|
|
|
(1,799
|
)
|
|
|
2,999
|
|
|
N/A
|
|
International Package
|
|
|
537
|
|
|
|
(442
|
)
|
|
|
979
|
|
|
N/A
|
|
Supply Chain & Freight
|
|
|
171
|
|
|
|
(541
|
)
|
|
|
712
|
|
|
N/A
|
|
Total operating profit (loss)
|
|
|
1,908
|
|
|
|
(2,782
|
)
|
|
|
4,690
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
Investment income
|
|
|
10
|
|
|
|
6
|
|
|
|
4
|
|
|
66.7
|
%
|
Interest expense
|
|
|
(94
|
)
|
|
|
(109
|
)
|
|
|
15
|
|
|
-13.8
|
%
|
Total other income (expense)
|
|
|
(84
|
)
|
|
|
(103
|
)
|
|
|
19
|
|
|
-18.4
|
%
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
1,824
|
|
|
|
(2,885
|
)
|
|
|
4,709
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit)
|
|
|
657
|
|
|
|
(1,137
|
)
|
|
|
1,794
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
1,167
|
|
|
$
|
(1,748
|
)
|
|
$
|
2,915
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) as a percentage of revenue
|
|
|
7.8
|
%
|
|
|
-12.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts:
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
$
|
1.26
|
|
|
$
|
(1.83
|
)
|
|
$
|
3.09
|
|
|
N/A
|
|
Diluted earnings (loss) per share
|
|
$
|
1.25
|
|
|
$
|
(1.83
|
)
|
|
$
|
3.08
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
928
|
|
|
|
956
|
|
|
|
(28
|
)
|
|
-2.9
|
%
|
Diluted
|
|
|
937
|
|
|
|
956
|
|
|
|
(19
|
)
|
|
-2.0
|
%
|
|
|
|
|
|
|
|
|
|
As adjusted income data:
|
|
|
|
|
|
|
|
|
Operating profit:
|
|
|
|
|
|
|
|
|
U.S. Domestic Package (1)
|
|
$
|
1,200
|
|
|
$
|
1,378
|
|
|
$
|
(178
|
)
|
|
-12.9
|
%
|
International Package (1)
|
|
|
537
|
|
|
|
499
|
|
|
|
38
|
|
|
7.6
|
%
|
Supply Chain & Freight (1)
|
|
|
171
|
|
|
|
172
|
|
|
|
(1
|
)
|
|
-0.6
|
%
|
Total operating profit (1)
|
|
|
1,908
|
|
|
|
2,049
|
|
|
|
(141
|
)
|
|
-6.9
|
%
|
|
|
|
|
|
|
|
|
|
Income before income taxes (1)
|
|
$
|
1,824
|
|
|
$
|
1,946
|
|
|
$
|
(122
|
)
|
|
-6.3
|
%
|
Net income (2)
|
|
$
|
1,167
|
|
|
$
|
1,275
|
|
|
$
|
(108
|
)
|
|
-8.5
|
%
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (2)
|
|
$
|
1.26
|
|
|
$
|
1.33
|
|
|
$
|
(0.07
|
)
|
|
-5.3
|
%
|
Diluted earnings per share (2)
|
|
$
|
1.25
|
|
|
$
|
1.32
|
|
|
$
|
(0.07
|
)
|
|
-5.3
|
%
|
|
|
|
|
(1) 2012 operating profit and consolidated income before income
taxes exclude the impact of an increase in pension expense due to
a mark-to-market loss recognized outside of a 10% corridor of
$4.831 billion, allocated between the U.S. Domestic Package
segment ($3.177 billion), International Package segment ($941
million), and Supply Chain & Freight segment ($713 million).
|
|
|
|
|
(2) 2012 net income and earnings per share amounts exclude the
impact of the pension mark-to-market adjustment described in (1),
which decreased net income by $3.023 billion. 4th quarter 2012
adjusted diluted earnings per share is based on weighted-average
shares outstanding of 965 million.
|
|
|
Certain prior year amounts have been reclassified to conform to
the current year presentation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United Parcel Service, Inc. Selected Operating Data
- Fourth Quarter (unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
December 31,
|
|
Change
|
|
|
2013
|
|
2012
|
|
$ / #
|
|
%
|
|
|
|
|
|
|
|
|
|
Revenue (in millions):
|
|
|
|
|
|
|
|
|
U.S. Domestic Package:
|
|
|
|
|
|
|
|
|
Next Day Air
|
|
$
|
1,689
|
|
$
|
1,669
|
|
$
|
20
|
|
|
1.2
|
%
|
Deferred
|
|
|
1,037
|
|
|
992
|
|
|
45
|
|
|
4.5
|
%
|
Ground
|
|
|
6,582
|
|
|
6,272
|
|
|
310
|
|
|
4.9
|
%
|
Total U.S. Domestic Package
|
|
|
9,308
|
|
|
8,933
|
|
|
375
|
|
|
4.2
|
%
|
International Package:
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
728
|
|
|
676
|
|
|
52
|
|
|
7.7
|
%
|
Export
|
|
|
2,502
|
|
|
2,391
|
|
|
111
|
|
|
4.6
|
%
|
Cargo
|
|
|
142
|
|
|
134
|
|
|
8
|
|
|
6.0
|
%
|
Total International Package
|
|
|
3,372
|
|
|
3,201
|
|
|
171
|
|
|
5.3
|
%
|
Supply Chain & Freight:
|
|
|
|
|
|
|
|
|
Forwarding and Logistics
|
|
|
1,441
|
|
|
1,623
|
|
|
(182
|
)
|
|
-11.2
|
%
|
Freight
|
|
|
712
|
|
|
671
|
|
|
41
|
|
|
6.1
|
%
|
Other
|
|
|
143
|
|
|
143
|
|
|
-
|
|
|
0.0
|
%
|
Total Supply Chain & Freight
|
|
|
2,296
|
|
|
2,437
|
|
|
(141
|
)
|
|
-5.8
|
%
|
Consolidated
|
|
$
|
14,976
|
|
$
|
14,571
|
|
$
|
405
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
Consolidated volume (in millions)
|
|
|
1,217
|
|
|
1,148
|
|
|
69
|
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
Operating weekdays
|
|
|
61
|
|
|
61
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Package Volume (in thousands):
|
|
|
|
|
|
|
|
|
U.S. Domestic Package:
|
|
|
|
|
|
|
|
|
Next Day Air
|
|
|
1,422
|
|
|
1,405
|
|
|
17
|
|
|
1.2
|
%
|
Deferred
|
|
|
1,400
|
|
|
1,296
|
|
|
104
|
|
|
8.0
|
%
|
Ground
|
|
|
14,244
|
|
|
13,461
|
|
|
783
|
|
|
5.8
|
%
|
Total U.S. Domestic Package
|
|
|
17,066
|
|
|
16,162
|
|
|
904
|
|
|
5.6
|
%
|
International Package:
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
1,687
|
|
|
1,559
|
|
|
128
|
|
|
8.2
|
%
|
Export
|
|
|
1,205
|
|
|
1,100
|
|
|
105
|
|
|
9.5
|
%
|
Total International Package
|
|
|
2,892
|
|
|
2,659
|
|
|
233
|
|
|
8.8
|
%
|
Consolidated
|
|
|
19,958
|
|
|
18,821
|
|
|
1,137
|
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
Average Revenue Per Piece:
|
|
|
|
|
|
|
|
|
U.S. Domestic Package:
|
|
|
|
|
|
|
|
|
Next Day Air
|
|
$
|
19.47
|
|
$
|
19.47
|
|
$
|
-
|
|
|
0.0
|
%
|
Deferred
|
|
|
12.14
|
|
|
12.55
|
|
|
(0.41
|
)
|
|
-3.3
|
%
|
Ground
|
|
|
7.58
|
|
|
7.64
|
|
|
(0.06
|
)
|
|
-0.8
|
%
|
Total U.S. Domestic Package
|
|
|
8.94
|
|
|
9.06
|
|
|
(0.12
|
)
|
|
-1.3
|
%
|
International Package:
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
7.07
|
|
|
7.11
|
|
|
(0.04
|
)
|
|
-0.6
|
%
|
Export
|
|
|
34.04
|
|
|
35.63
|
|
|
(1.59
|
)
|
|
-4.5
|
%
|
Total International Package
|
|
|
18.31
|
|
|
18.91
|
|
|
(0.60
|
)
|
|
-3.2
|
%
|
Consolidated
|
|
$
|
10.30
|
|
$
|
10.45
|
|
$
|
(0.15
|
)
|
|
-1.4
|
%
|
|
|
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)
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
December 31,
|
|
Change
|
|
|
2013
|
|
2012
|
|
$
|
|
%
|
(amounts in millions, except per share data)
|
|
|
|
|
|
|
|
|
Statement of Income Data:
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
U.S. Domestic Package
|
|
$
|
34,074
|
|
|
$
|
32,856
|
|
|
$
|
1,218
|
|
|
3.7
|
%
|
International Package
|
|
|
12,429
|
|
|
|
12,124
|
|
|
|
305
|
|
|
2.5
|
%
|
Supply Chain & Freight
|
|
|
8,935
|
|
|
|
9,147
|
|
|
|
(212
|
)
|
|
-2.3
|
%
|
Total revenue
|
|
|
55,438
|
|
|
|
54,127
|
|
|
|
1,311
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
28,557
|
|
|
|
33,102
|
|
|
|
(4,545
|
)
|
|
-13.7
|
%
|
Other
|
|
|
19,847
|
|
|
|
19,682
|
|
|
|
165
|
|
|
0.8
|
%
|
Total operating expenses
|
|
|
48,404
|
|
|
|
52,784
|
|
|
|
(4,380
|
)
|
|
-8.3
|
%
|
|
|
|
|
|
|
|
|
|
Operating profit:
|
|
|
|
|
|
|
|
|
U.S. Domestic Package
|
|
|
4,603
|
|
|
|
459
|
|
|
|
4,144
|
|
|
N/A
|
|
International Package
|
|
|
1,757
|
|
|
|
869
|
|
|
|
888
|
|
|
102.2
|
%
|
Supply Chain & Freight
|
|
|
674
|
|
|
|
15
|
|
|
|
659
|
|
|
N/A
|
|
Total operating profit
|
|
|
7,034
|
|
|
|
1,343
|
|
|
|
5,691
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
Investment income
|
|
|
20
|
|
|
|
24
|
|
|
|
(4
|
)
|
|
-16.7
|
%
|
Interest expense
|
|
|
(380
|
)
|
|
|
(393
|
)
|
|
|
13
|
|
|
-3.3
|
%
|
Total other income (expense)
|
|
|
(360
|
)
|
|
|
(369
|
)
|
|
|
9
|
|
|
-2.4
|
%
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
6,674
|
|
|
|
974
|
|
|
|
5,700
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
2,302
|
|
|
|
167
|
|
|
|
2,135
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
4,372
|
|
|
$
|
807
|
|
|
$
|
3,565
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Net income as a percentage of revenue
|
|
|
7.9
|
%
|
|
|
1.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share amounts
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
4.65
|
|
|
$
|
0.84
|
|
|
$
|
3.81
|
|
|
N/A
|
|
Diluted earnings per share
|
|
$
|
4.61
|
|
|
$
|
0.83
|
|
|
$
|
3.78
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
940
|
|
|
|
960
|
|
|
|
(20
|
)
|
|
-2.1
|
%
|
Diluted
|
|
|
948
|
|
|
|
969
|
|
|
|
(21
|
)
|
|
-2.2
|
%
|
|
|
|
|
|
|
|
|
|
As adjusted income data:
|
|
|
|
|
|
|
|
|
Operating profit:
|
|
|
|
|
|
|
|
|
U.S. Domestic Package (1)
|
|
$
|
4,603
|
|
|
$
|
4,532
|
|
|
$
|
71
|
|
|
1.6
|
%
|
International Package (1)
|
|
|
1,796
|
|
|
|
1,810
|
|
|
|
(14
|
)
|
|
-0.8
|
%
|
Supply Chain & Freight (1)
|
|
|
674
|
|
|
|
728
|
|
|
|
(54
|
)
|
|
-7.4
|
%
|
Total operating profit (1)
|
|
|
7,073
|
|
|
|
7,070
|
|
|
|
3
|
|
|
0.0
|
%
|
|
|
|
|
|
|
|
|
|
Income before income taxes (1)
|
|
$
|
6,713
|
|
|
$
|
6,701
|
|
|
$
|
12
|
|
|
0.2
|
%
|
Net income (2)
|
|
$
|
4,336
|
|
|
$
|
4,389
|
|
|
$
|
(53
|
)
|
|
-1.2
|
%
|
|
|
|
|
|
|
|
|
|
Basic earnings per share (2)
|
|
$
|
4.61
|
|
|
$
|
4.57
|
|
|
$
|
0.04
|
|
|
0.9
|
%
|
Diluted earnings per share (2)
|
|
$
|
4.57
|
|
|
$
|
4.53
|
|
|
$
|
0.04
|
|
|
0.9
|
%
|
|
(1) 2013 operating profit and consolidated income before income
taxes exclude the impact of the TNT termination penalty of €200
million ($268 million) and transaction-related expenses of $16
million. The combination of these items resulted in a pre-tax
charge of $284 million ($177 million after-tax). Subsequent to the
termination of the merger protocol, we liquidated a foreign
subsidiary resulting in a realized foreign currency gain of $245
million ($213 million after-tax). Both transactions impacted the
International Package segment.
|
|
2012 operating profit and consolidated income before income taxes
exclude the impact of an increase in pension expense due to a
mark-to-market loss recognized outside of a 10% corridor of $4.831
billion, allocated between the U.S. Domestic Package segment
($3.177 billion), International Package segment ($941 million),
and Supply Chain & Freight segment ($713 million). 2012 also
excludes an $896 million pre-tax charge from the withdrawal
liability associated with restructuring a multiemployer pension
plan in the U.S. Domestic Package segment.
|
|
(2) 2013 net income and earnings per share amounts excluded the
after-tax impact of the International Package segment transactions
described in (1), which total a combined $36 million after-tax
gain.
|
|
2012 net income and earnings per share amounts exclude the after
tax impact of the adjustments described in (1), which combined to
a decrease in net income by $3.582 billion.
|
|
|
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)
|
|
|
|
|
Twelve Months Ended
|
|
|
|
|
|
|
December 31,
|
|
Change
|
|
|
2013
|
|
2012
|
|
$ / #
|
|
%
|
|
|
|
|
|
|
|
|
|
Revenue (in millions):
|
|
|
|
|
|
|
|
|
U.S. Domestic Package:
|
|
|
|
|
|
|
|
|
Next Day Air
|
|
$
|
6,443
|
|
$
|
6,412
|
|
$
|
31
|
|
|
0.5
|
%
|
Deferred
|
|
|
3,437
|
|
|
3,392
|
|
|
45
|
|
|
1.3
|
%
|
Ground
|
|
|
24,194
|
|
|
23,052
|
|
|
1,142
|
|
|
5.0
|
%
|
Total U.S. Domestic Package
|
|
|
34,074
|
|
|
32,856
|
|
|
1,218
|
|
|
3.7
|
%
|
International Package:
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
2,667
|
|
|
2,531
|
|
|
136
|
|
|
5.4
|
%
|
Export
|
|
|
9,166
|
|
|
9,033
|
|
|
133
|
|
|
1.5
|
%
|
Cargo
|
|
|
596
|
|
|
560
|
|
|
36
|
|
|
6.4
|
%
|
Total International Package
|
|
|
12,429
|
|
|
12,124
|
|
|
305
|
|
|
2.5
|
%
|
Supply Chain & Freight:
|
|
|
|
|
|
|
|
|
Forwarding and Logistics
|
|
|
5,492
|
|
|
5,977
|
|
|
(485
|
)
|
|
-8.1
|
%
|
Freight
|
|
|
2,882
|
|
|
2,640
|
|
|
242
|
|
|
9.2
|
%
|
Other
|
|
|
561
|
|
|
530
|
|
|
31
|
|
|
5.8
|
%
|
Total Supply Chain & Freight
|
|
|
8,935
|
|
|
9,147
|
|
|
(212
|
)
|
|
-2.3
|
%
|
Consolidated
|
|
$
|
55,438
|
|
$
|
54,127
|
|
$
|
1,311
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
Consolidated volume (in millions)
|
|
|
4,268
|
|
|
4,107
|
|
|
161
|
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
Operating weekdays
|
|
|
252
|
|
|
252
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Package Volume (in thousands):
|
|
|
|
|
|
|
|
|
U.S. Domestic Package:
|
|
|
|
|
|
|
|
|
Next Day Air
|
|
|
1,271
|
|
|
1,277
|
|
|
(6
|
)
|
|
-0.5
|
%
|
Deferred
|
|
|
1,074
|
|
|
1,031
|
|
|
43
|
|
|
4.2
|
%
|
Ground
|
|
|
12,060
|
|
|
11,588
|
|
|
472
|
|
|
4.1
|
%
|
Total U.S. Domestic Package
|
|
|
14,405
|
|
|
13,896
|
|
|
509
|
|
|
3.7
|
%
|
International Package:
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
1,499
|
|
|
1,427
|
|
|
72
|
|
|
5.0
|
%
|
Export
|
|
|
1,034
|
|
|
972
|
|
|
62
|
|
|
6.4
|
%
|
Total International Package
|
|
|
2,533
|
|
|
2,399
|
|
|
134
|
|
|
5.6
|
%
|
Consolidated
|
|
|
16,938
|
|
|
16,295
|
|
|
643
|
|
|
3.9
|
%
|
|
|
|
|
|
|
|
|
|
Average Revenue Per Piece:
|
|
|
|
|
|
|
|
|
U.S. Domestic Package:
|
|
|
|
|
|
|
|
|
Next Day Air
|
|
$
|
20.12
|
|
$
|
19.93
|
|
$
|
0.19
|
|
|
1.0
|
%
|
Deferred
|
|
|
12.70
|
|
|
13.06
|
|
|
(0.36
|
)
|
|
-2.8
|
%
|
Ground
|
|
|
7.96
|
|
|
7.89
|
|
|
0.07
|
|
|
0.9
|
%
|
Total U.S. Domestic Package
|
|
|
9.39
|
|
|
9.38
|
|
|
0.01
|
|
|
0.1
|
%
|
International Package:
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
7.06
|
|
|
7.04
|
|
|
0.02
|
|
|
0.3
|
%
|
Export
|
|
|
35.18
|
|
|
36.88
|
|
|
(1.70
|
)
|
|
-4.6
|
%
|
Total International Package
|
|
|
18.54
|
|
|
19.13
|
|
|
(0.59
|
)
|
|
-3.1
|
%
|
Consolidated
|
|
$
|
10.76
|
|
$
|
10.82
|
|
$
|
(0.06
|
)
|
|
-0.6
|
%
|
|
|
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)
|
|
December 31,
|
Net cash from operations
|
|
$
|
7,304
|
|
Capital expenditures
|
|
|
(2,065
|
)
|
Proceeds from disposals of PP&E
|
|
|
104
|
|
Net change in finance receivables
|
|
|
39
|
|
Other investing activities
|
|
|
(43
|
)
|
Free cash flow
|
|
$
|
5,339
|
|
|
|
|
|
|
|
Amounts are subject to reclassification.
|
|
|
Certain prior year amounts have been reclassified to conform to
the current year presentation.
|
|
|
|

Source: UPS
UPS Public Relations: Andy McGowan, 404-828-4663 or Investor
Relations: Andy Dolny, 404-828-8901
|