ENP Newswire -
Release date- 29072014 - E-Commerce Drives UPS 2Q Shipments Up 7.2 Percent, UPS 2Q EPS Increases 7.1 Percent.
U.S. Domestic Daily Packages Increased 7.4%
International Export Shipments Climb 9.1% per Day
Supply Chain and Freight Segment Operating Profit Grows 11%
Full-Year Adjusted EPS Guidance Lowered to a Range of
Increases 2014 Expenditures for Capacity and Peak Projects to
Recognizes Charge to
As previously announced, the company completed the transfer of post-retirement liabilities for certain
'The strong revenue growth this quarter is evidence that our portfolio resonates with customers, with more choosing UPS as their logistics provider,' said
For the six months ended
U.S. Domestic Package
U.S. Domestic revenue increased 5.2% to
On a reported basis, operating profit declined 82% to
Ground product growth was driven primarily by lightweight e-commerce shipments. UPS SurePost shipments increased more than 60% over the prior year period and accounted for about half of the total growth.
Total revenue per package declined 2.0% as base rates improvements were offset by customer and product mix. The rapid growth in UPS SurePost was the primary cause of the reduction, while growth from large enterprise accounts also weighed on yields.
International small package revenue climbed 6.2% or
On a reported basis, operating profit declined
Export shipments increased 9.1% over the prior year, with growth from all regions of the world.
Revenue per package on a currency-neutral basis was down 1.7% from the prior year, driven by a 4% decline in Export yield. Non-premium products continued to outpace premium as customers seek low-cost alternatives. Double-digit gains in Pan-European shipments also lowered revenue per package.
Rapid shipment growth in
Supply Chain & Freight
Supply Chain and Freight revenue increased 6.5% to
On a reported basis, operating profit dropped
UPS Forwarding produced double-digit operating profit growth. Strong improvements at North American Air Freight, Brokerage and Ocean Freight were offset somewhat by a drop in International Air Freight. Market pricing on the key
The Distribution business unit experienced high single-digit revenue growth as a result of gains from Retail and Healthcare customers. UPS continues to invest in expanding its global distribution footprint.
UPS Freight revenue was 5.5% higher, driven by a 4.1% increase in LTL revenue per hundredweight and tonnage gains of 1.6%. Operating profit and margin improved from the prior year, as the business unit continued to focus on profitable revenue opportunities.
The company announced plans to increase 2014 operating expense for capacity and peak related projects to a total of
'We are encouraged by the strong demand for UPS solutions around the world,' said
'These initiatives will increase operating expense this year, but will provide financial benefits for years to come,' Kuehn continued. 'As a result, we have lowered our expectations for adjusted diluted earnings per share to be in a range of
UPS chairman and CEO
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 second quarter and year-to-date 2014 and 2013 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 second quarter of 2014, we recorded a
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, which are 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
UPS (NYSE: UPS) is a global leader in logistics, offering a broad range of solutions including transporting packages and freight; facilitating international trade, and deploying advanced technology to more efficiently manage the world of business. Headquartered in
To ask about this press release, contact:
UPS Public Relations
UPS Investor Relations
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