UPS 3Q18 Earnings per Share Up More Than 20%

ATLANTA, Oct. 24, 2018 (GLOBE NEWSWIRE) — UPS (NYSE:UPS) today announced third-quarter diluted earnings per share of $1.73, up more than 20%, and adjusted, diluted earnings per share of $1.82, up 26%.

Third-quarter adjusted results exclude a pre-tax charge of $97 million, or $0.09 per share after tax, due to transformation-related costs.  These projects are a part of the company’s transformation initiatives that will create efficiencies across the enterprise.  Transformation will also produce higher-quality revenue growth.

October 24, 2018
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  • 3Q18 EPS of $1.73, up More Than 20%; Adjusted EPS up 26% to $1.82
  • U.S. Domestic Revenue up 8.1% on Growth and Accelerating Yields
  • International Currency-Neutral Revenue Grew 5%, with Gains in all Regions
  • International Year-Over-Year Comparisons Affected by Headwinds from Currency and Fuel
  • Supply Chain & Freight Operating Profit up 24%; Adjusted Operating Profit Jumps 33%
  • YTD Cash from Operations was $9.4B and Free Cash Flow was up to $4.9B
  • Raising Free Cash Flow Guidance to Over $5B and Reaffirming Adjusted EPS


Consolidated Results 3Q 2018 Adjusted
3Q 2018
3Q 2017
Revenue $17,444 M $16,173 M
Net Income $1,508 M $1,581 M $1,259 M
Diluted Earnings Per Share $1.73 $1.82 $1.44
EPS Growth 20.1 % 26.4 %

“Our business strategies position UPS to improve operating leverage and many of our actions are already contributing to performance gains,” said UPS Chairman and CEO David Abney.  “We generated another quarter of industry-leading margins and strong free cash flow and we are confident in the outlook for the business.”

For the company in 3Q 2018:

  • Consolidated revenue increased 7.9% and currency-neutral revenue was 8.4% higher.
  • Average revenue yield increased 4.0%, with base-pricing gains in all product categories.
  • Year-to-date cash from operations expanded to $9.4 billion.
  • Free cash flow increased to $4.9 billion through the first nine months of the year.
  • Year-to-date dividends per share increased by 10%, producing an annual dividend yield in excess of 3%.
  • The company repurchased 6.6 million shares year-to-date for approximately $750 million.
  • Capital investments and associated efficiencies were as expected in the quarter with year-to-date expenditures at $4.5 billion.
  • Third quarter results benefited from several discrete items, including tax that helped to offset unplanned International headwinds from currency and fuel.

U.S. Domestic Segment

The U.S. Domestic segment experienced strong revenue growth of 8.1% to $10.4 billion, driven by high demand for the company’s solutions and robust yield expansion compared to 3Q 2017.  The segment also generated sequential yield improvements driven in part by a more disciplined approach to capture high-quality growth opportunities.

3Q 2018 Adjusted
3Q 2018
3Q 2017
Revenue $10,437 M $9,651 M
Operating profit $949 M $988 M $1,011 M

For the U.S. Domestic segment in 3Q 2018:

  • Revenue, volume and revenue per piece increased across all products in the quarter.
  • Daily shipments increased 3.3%, led by Next Day Air and Ground products.
  • Ground revenue per piece increased by 5.1% over the prior year.
  • Operating profit was reduced by planned increases in pension expense and the cost of ongoing network improvements.
  • Adjusted operating profit excludes transformation charges of $39 million.

The Investor Relations website contains information about UPS’s business for stockholders, potential investors, and financial analysts.

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