Dubai, UAE, July 30, 2018:   UPS (NYSE:UPS) today announced second-quarter diluted earnings per share growth of 8.2%, to $1.71, and adjusted diluted earnings per share growth of 23%, to $1.94. 

 

Second-quarter 2018 adjusted results exclude a pre-tax charge of $263 million, or $0.23 per share after-tax, due to transformation costs primarily related to the Voluntary Retirement Plan (VRP).    

 

Consolidated Results	2Q 2018	Adjusted 2Q 2018	2Q 2017
Revenue	$17,456 M		$15,927 M
Net Income	$1,485 M	$1,685 M	$1,384 M
Diluted earnings per share	$1.71	$1.94	$1.58
EPS Growth	8.2%	23%

“UPS is making great progress on our transformation initiatives to enhance profitable growth and improve operating leverage,” said David Abney, UPS Chairman and CEO.  “We are confident that our strategies will position the company to provide improved value for customers and shareowners.”  

 

For the total company in 2Q 2018:

* Information on non-GAAP financial measures is attached to this press release.

 

The U.S. Domestic segment experienced strong revenue growth of 6.3%, driven by ecommerce demand and increased revenue per piece over the prior year.  Operating profit was primarily reduced by planned increases in pension expense and cost for ongoing network projects.

 

	2Q 2018	Adjusted 2Q 2018	2Q 2017
Revenue	$10,354 M		$9,741 M
Operating profit	$939 M	$1,135 M	$1,255 M

For the U.S. Domestic segment in 2Q 2018:

 

The International segment delivered its 14th consecutive quarter of currency neutral double-digit operating profit growth.   The segment enjoyed its highest 2nd quarter operating profit ever, led by the Europe region.

 

	2Q 2018	Adjusted 2Q 2018	2Q 2017
Revenue	$3,602 M		$3,171 M
Operating profit	$618 M	$654 M	$570 M

For the International segment in 2Q 2018:

 

“The Supply Chain and Freight segment delivered another quarter of double-digit growth in revenue and adjusted operating profit,” continued Abney.  “Our targeted growth strategies and improved efficiencies produced the segment’s best profit growth in its history.” 

 

	2Q 2018	Adjusted 2Q 2018	2Q 2017
Revenue	$3,500 M		$3,015 M
Operating profit	$216 M	$247 M	$212 M

For the Supply Chain and Freight segment in 2Q 2018:

 

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 or other unanticipated events, which would be included in reported (GAAP) results and could be material.

 

“UPS is focused on executing our strategic imperatives for improved efficiency and high-quality growth,” said Richard Peretz, UPS’s chief financial officer.  “We remain confident in our ability to achieve our full-year adjusted earnings per share target.”