UPS releases 2Q 2019 Earnings
- 2Q19 EPS of $1.94; 2Q19 Adjusted* EPS of $1.96
- U.S. Daily Volume Grew Over 7%; Next Day Air Volume Soared Over 30%
- U.S. Operating Profit Increased Nearly 29%; Up 8% on an Adjusted Basis
- International Boosts Operating Margins to 18.9%; Adjusted Margins of 19%
- Supply Chain and Freight Operating Profit Increased Nearly 26%; Adjusted Operating Profit Up More Than 10%
- Cash from Operations of $4.2B; Adjusted Free Cash Flow Near $2.2B
- UPS reaffirms adjusted full-year diluted EPS in the range of $7.45 to $7.75
Consolidated Results | Adjusted | Adjusted | ||
2Q 2019 | 2Q 2019 | 2Q 2018 | 2Q 2018 | |
Revenue | $18,048 M | $17,456 M | ||
Net Income | $1,685 M | $1,702 M | $1,485 M | $1,685M |
Diluted Earnings Per Share | $1.94 | $1.96 | $1.71 | $1.94 |
- Consolidated revenue increased 3.4% to $18 billion, driven by gains in average daily volume in the U.S. and higher-quality, currency-neutral revenue in the International segment.
- Total operating profit grew nearly 21%, and 6.3% on an adjusted basis, with growth in all segments.
- Total operating margin expanded 170 basis points; adjusted operating margin expanded 30 basis points.
- Capital expenditures for the year are approximately $2.9 billion to support network enhancements.
- Year-to-date dividends per share increased 5.5% and the company repurchased 4.8 million shares for approximately $500 million.
Adjusted | Adjusted | |||
2Q 2019 | 2Q 2019 | 2Q 2018 | 2Q 2018 | |
Revenue | $11,150 M | $10,354 M | ||
Operating profit | $1,208 M | $1,226 M | $939 M | $1,135 M |
- Revenue increased $796 million or 7.7% over 2Q 2018, led by increased demand for air services from customers in healthcare and retail.
- Operating profit increased by 28.6%, or 8% on an adjusted basis.
- Operating margins were 10.8%, and 11% on an adjusted basis.
- Network efficiencies continued to reduce the growth in cost per piece, with a steady decline in unit cost growth for the third straight quarter.
Adjusted | Adjusted | |||
2Q 2019 | 2Q 2019 | 2Q 2018 | 2Q 2018 | |
Revenue | $3,505 M | $3,602 M | ||
Operating profit | $663 M | $665 M | $618 M | $654M |
- International volume slightly declined due to global macroeconomic pressure and tough year-over-year comparisons, as 2Q 2018 exports grew 9.5%.
- Total revenue per piece fell less than 1%, but grew nearly 2% when adjusting for currency.
- International domestic revenue per piece rose 0.3%, an increase of 5.6% on a currency-neutral basis.
- Operating profit increased more than 7%, or by 1.7% on an adjusted basis.
Adjusted | Adjusted | |||
2Q 2019 | 2Q 2019 | 2Q 2018 | 2Q 2018 | |
Revenue | $3,393M | $3,500 M | ||
Operating profit | $272 M | $273 M | $216 M | $247M |
- Operating margins expanded to 8% on an adjusted and unadjusted basis, due to strong execution, disciplined cost management and strategic initiatives that focus on delivering excellent service levels and growing high-quality revenue from the SMB market.
- International Air Freight achieved robust profit growth on a decline in tonnage, driven by expanded buy/sell spreads.
- Coyote and Marken made significant contributions to operating profit.
- UPS Freight achieved a 3.9% increase in revenue per LTL (less-than-truckload) hundredweight as the unit focused on revenue quality.
- The company’s full-year adjusted diluted EPS will be in the range of $7.45 to $7.75.
- Adjusted free cash flow for the year is projected to be between $3.5 and $4 billion with potential additional upside from the working capital initiatives.
- The effective tax rate for the full-year 2019 is estimated to be between 22% and 24%.
- Third-quarter adjusted EPS is expected to benefit from numerous items including one additional operating day and year-over-year International benefits from 2018 commodities headwinds that should not repeat.
- Transformation charges and pension MTM are not included in the adjusted guidance.
Home >> Shipping and Logistic Section
Oris Introduces the Divers Sixty-Five Date Cotton Candy “White Star”
ICBA Welcomes the UAE's Launch of the National Agricultural Center to Advance Ag ...
Hitachi Energy bolsters manufacturing capacity in North America with additional ...
Abu Dhabi Department of Energy highlighting regulatory frameworks for petroleum ...
Family Development Foundation organised ‘Mukhallaf w Muwallaf' initiative for se ...
Ksrelief delegation visits zaatari camp, marking fourth year of support to wfp's ...
Discover the thrill of outdoor fitness and get inspired ahead of this year's Dub ...
Dubai Humanitarian Wins Gold Stevie® Award for Pioneering Technology in Global A ...
Dubai Airports celebrates unified service and service excellence in an entertain ...
UAE Secures Silver Medal at the First Global Challenge 2024: A Historic Achievem ...
Panasonic Introduces New CCTV lineup for SME and Residential Market
Wizz air abu dhabi launches incredible promotion with ten percent off on selecte ...
Nothing expands its audio portfolio in the Middle East with the launch of Nothin ...
Moro Hub presents Green Certificate to Dubai Supreme Council of Energy
GPSSA highlights the impacts of ‘excess spending' A financial awareness session ...
Dubai Sports Council continues Receiving of Registration Forms for the 12th &quo ...
Dubai Culture showcases Dubai's creative journey in Tashkent
Dubai Health Authority to Showcase Exceptional Services to Support and Empower P ...
Liali Jewellery Celebrates the Grand Opening of New Boutique at BurJuman Mall an ...