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UPS International Profit Rebounds

Stocks in this article: UPS

(2) Third quarter 2012 net income and earnings per share amounts excluded the after-tax impact of the U.S. Domestic Package withdrawal liability charge described in (1), which totals $559 million.

Certain prior year amounts have been reclassified to conform to the current year presentation.

 
 

United Parcel Service, Inc.

Selected Operating Data - Third Quarter
(unaudited)
 
           
Three Months Ended
September 30,     Change
2012   2011     $/ #   %
 
Revenue (in millions):
U.S. Domestic Package:
Next Day Air $ 1,577 $ 1,588 $ (11 ) -0.7 %
Deferred 776 760 16 2.1 %
Ground   5,508     5,419       89   1.6 %
Total U.S. Domestic Package 7,861 7,767 94 1.2 %
International Package:
Domestic 600 660 (60 ) -9.1 %
Export 2,195 2,251 (56 ) -2.5 %
Cargo   148     146       2   1.4 %
Total International Package 2,943 3,057 (114 ) -3.7 %
Supply Chain & Freight:
Forwarding and Logistics 1,445 1,552 (107 ) -6.9 %
Freight 691 667 24 3.6 %
Other   131     123       8   6.5 %
Total Supply Chain & Freight   2,267     2,342       (75 ) -3.2 %
Consolidated $ 13,071   $ 13,166     $ (95 ) -0.7 %
 
Consolidated volume (in millions) 978 965 13 1.3 %
 
Operating weekdays 63 64 (1 )
 
Average Daily Package Volume (in thousands):
U.S. Domestic Package:
Next Day Air 1,264 1,196 68 5.7 %
Deferred 931 852 79 9.3 %
Ground   11,010     10,688       322   3.0 %
Total U.S. Domestic Package 13,205 12,736 469 3.7 %
International Package:
Domestic 1,386 1,424 (38 ) -2.7 %
Export   930     919       11   1.2 %
Total International Package   2,316     2,343       (27 ) -1.2 %
Consolidated   15,521     15,079       442   2.9 %
 
Average Revenue Per Piece:
U.S. Domestic Package:
Next Day Air $ 19.80 $ 20.75 $ (0.95 ) -4.6 %
Deferred 13.23 13.94 (0.71 ) -5.1 %
Ground 7.94 7.92 0.02 0.3 %
Total U.S. Domestic Package 9.45 9.53 (0.08 ) -0.8 %
International Package:
Domestic 6.87 7.24 (0.37 ) -5.1 %
Export 37.46 38.27 (0.81 ) -2.1 %
Total International Package 19.16 19.41 (0.25 ) -1.3 %
Consolidated $ 10.90   $ 11.06     $ (0.16 ) -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)
         
Nine Months Ended
September 30,   Change
2012   2011   $   %

(amounts in millions, except per share data)

Statement of Income Data:
Revenue:
U.S. Domestic Package $ 23,923 $ 23,047 $ 876 3.8 %
International Package 8,923 9,096 (173 ) -1.9 %
Supply Chain & Freight   6,710       6,796       (86 ) -1.3 %
Total revenue 39,556 38,939 617 1.6 %
 
Operating expenses:
Compensation and benefits 21,159 19,845 1,314 6.6 %
Other   14,272       14,211       61   0.4 %
Total operating expenses 35,431 34,056 1,375 4.0 %
 
Operating profit:
U.S. Domestic Package 2,258 2,923 (665 ) -22.8 %
International Package 1,311 1,375 (64 ) -4.7 %
Supply Chain & Freight   556       585       (29 ) -5.0 %
Total operating profit 4,125 4,883 (758 ) -15.5 %
 
Other income (expense):
Investment income 18 36 (18 ) -50.0 %
Interest expense   (284 )     (252 )     (32 ) 12.7 %
Total other income (expense) (266 ) (216 ) (50 ) 23.1 %
         
Income before income taxes 3,859 4,667 (808 ) -17.3 %
 
Income tax expense 1,304 1,588 (284 ) -17.9 %
         
Net income $ 2,555     $ 3,079     $ (524 ) -17.0 %
 
Net income as a percentage of revenue 6.5 % 7.9 %
 
Per share amounts
Basic earnings per share $ 2.66 $ 3.12 $ (0.46 ) -14.7 %
Diluted earnings per share $ 2.63 $ 3.09 $ (0.46 ) -14.9 %
 
Weighted-average shares outstanding
Basic 962 986 (24 ) -2.4 %
Diluted 971 996 (25 ) -2.5 %
                   
As adjusted income data:
Operating profit:
U.S. Domestic Package (1) $ 3,154 $ 2,938 $ 216 7.4 %
International Package 1,311 1,375 (64 ) -4.7 %
Supply Chain & Freight (1)   556       537       19   3.5 %
Total operating profit 5,021 4,850 171 3.5 %
 
Income before income taxes (1) $ 4,755 $ 4,634 $ 121 2.6 %
Net income (2) $ 3,114 $ 3,059 $ 55 1.8 %
 
Basic earnings per share (2) $ 3.24 $ 3.10 $ 0.14 4.5 %
Diluted earnings per share (2) $ 3.21 $ 3.07 $ 0.14 4.6 %

(1) 2012 operating profit and consolidated income before income taxes excluded the $896 million pre-tax charge from the withdrawal liability associated with restructuring a multiemployer pension plan in the U.S. Domestic Package segment. 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).

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