- Focused on the Health and Safety of Employees and the Public
- Supported Customers with Near Record On-Time Service
- COVID-19 Weighed on First-Quarter Results
- Cash from Operations of $2.6B; Adjusted* Free Cash Flow of $1.6B
- UPS Liquidity and Financial Condition Remain Strong
UPS (NYSE:UPS) today announced first-quarter 2020 diluted earnings per share of $1.11 and adjusted diluted earnings per share of $1.15. The company’s results were adversely affected by the disruption to customers from the global coronavirus pandemic.
UPS has been designated by governments around the world as a Critical Infrastructure Business and continues to operate in all major countries, while adhering to additional regulatory requirements. In the U.S., the company is also front and center in leading the pandemic logistics response for the Federal Emergency Management Agency (FEMA) and other federal and state government agencies. As a logistics leader, UPS is supporting FEMA and its Project Airbridge by managing charter flights around the globe. UPS has delivered several million pounds of Personal Protective Equipment for FEMA into dedicated UPS distribution space. In addition, as part of FEMA’s Project Airbridge and other healthcare-related missions, in April the company increased the number of flights by over 200 to transport critical life-saving cargo to the U.S. and Europe.
“I want to thank all 495,000 UPSers for their extraordinary efforts to leverage the full power of our global network in the fight against the coronavirus pandemic, keeping critical goods moving for businesses and consumers globally,” said David Abney, UPS chairman and CEO. “The world is counting on UPS more than ever before as we support the people on the front lines of this crisis and our customers with speed, ingenuity and reliability.”
In the first quarter of 2020, the company incurred a pre-tax transformation charge of $45 million, or $0.04 per share after tax. First-quarter 2019 adjusted results excluded a pre-tax charge of $123 million, or $0.11 per share after tax, from transformation-related charges.
第 1 季度 2019
Diluted Earnings Per Share
* “Adjusted” amounts presented in this release are non-GAAP financial measures. 请参考本新闻稿的附录，了解非 GAAP 财务指标的讨论，包括与最密切相关的 GAAP 指标的对照。
For the total company in 1Q 2020:
- Consolidated revenue increased to $18 billion, driven by growth in business-to-consumer shipments and gains in healthcare.
- Net income was $965 million; adjusted net income was $1 billion.
- Net income included material headwinds due to disruptions from the coronavirus pandemic, higher self-insurance accruals and other items.
- Adjusted capital expenditures were $939 million to support network enhancements.
- Dividends per share increased 5.2%, with dividends remaining a high priority for the company.
U.S. Domestic Segment
The progression of stay-at-home restrictions instituted across the country as a result of coronavirus closed businesses and disrupted supply chains, resulting in an unprecedented shift in customer and product mix in the quarter. The company’s automated hubs and other transformation investments generated efficiency gains; however, these benefits did not offset the significant headwinds from the impact the coronavirus pandemic had on UPS customers, coupled with higher self-insurance accruals. UPS continues to adapt its network to the current economic environment while supporting customers and critical government programs.
第 1 季度 2019
- Revenue increased 9.3% and average daily volume was up 8.5%, with growth across all products.
- Next Day Air average daily volume grew 20.5%, the fourth consecutive quarter of double-digit increases.
- Revenue per piece decreased less than 1% due to changes in customer and product mix.
- Commercial deliveries declined while residential deliveries were elevated.
- Shipment growth in the quarter was driven by large customers.
- On-time performance across all service levels was near a record high in a dynamic environment.
UPS’s International segment generated $551 million in operating profit, or $558 million in operating profit on an adjusted basis, despite weakening global economic activity. The company executed well to contain costs and target customer opportunities as the coronavirus pandemic rapidly spread from Asia to other parts of the world.
第 1 季度 2019
- International average daily volume was down 1.8% with declines in commercial deliveries.
- China volume primarily rebounded in March as its economic recovery accelerated, offsetting declines in January and February. Healthcare, high-tech and e-commerce sectors were positive contributors.
- International cost per piece was down 0.5%, primarily due to the impact of currency. Additionally, the significant change in mix was partially offset by network adjustments to align capacity to changing trade patterns.
- Operating margin was 16.3%; adjusted operating margin remained strong at 16.5%.
Supply Chain and Freight generated operating profit of $157 million, or $158 million in operating profit on an adjusted basis, despite significant economic headwinds from the coronavirus pandemic. Revenue was negatively impacted by widespread reductions in global economic activity. The segment is taking numerous actions to assist customers and improve financial performance as demand recovers, including activating aircraft charters from Asia, expanding customer relationships in the healthcare sector and applying peak surcharges where appropriate.
第 1 季度 2019
- Revenue was down less than 1% due to disciplined focus on growth opportunities and the segment’s broad portfolio of solutions.
- Toward the end of the quarter, UPS Freight and Coyote experienced depressed volume levels primarily from mandated stay-at-home restrictions and businesses closures.
- Logistics grew both revenue and operating profit, led by double-digit growth from Marken.
- Within the Forwarding unit, International Air Freight tonnage rebounded in March generating revenue and profit growth in the quarter.
At this time, UPS is unable to predict the extent of the business impact or the duration of the coronavirus pandemic, or reasonably estimate its operating performance in future quarters. As a result, the company is withdrawing its previously issued 2020 revenue and diluted earnings per share growth guidance. UPS has taken steps to ensure it remains strong and resilient throughout this period, including:
- The company expects 2020 capital expenditures will be reduced by approximately $1 billion from previous estimates.
- UPS is suspending share buybacks for 2020, reducing its planned full-year repurchase target by approximately $783 million.
“We will continue to adapt through this challenging period and prioritize investments and operational decisions that put UPS in the best financial position.” said Brian Newman, UPS’s chief financial officer. “We take a disciplined and balanced approach to capital allocation and are confident in our liquidity position including our commitments to capital management and dividends.”
UPS CEO David Abney and CFO Brian Newman will discuss first-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, 2020 年 4 月 28 日. 其他人将可通过实时网络直播参与视频会议。如需参加视频会议，请访问 www.investors.ups.com，并点击“营收网络直播”(Earnings Webcast)。其他财务信息包括公布在“财务”下的 www.investors.ups.com 中并作为附件提交给美国证券交易委员会 (SEC) 的目前的 8-K 表格报告的详细财务时间表。
UPS (纽交所: UPS) 为全球物流领导企业，提供广泛的解决方案，业务范围涵括国际快递及海空运货物运输，通过国际贸易便利化、先进科技的布署，从而更有效率地管理全球商务。UPS 总部设在美国亚特兰大市，服务范围遍及全球 220 多个国家和地区。UPS 获评《新闻周刊》杂志“运输货运”服务类别美国最佳客户服务公司和《福布斯》杂志运输业最具价值品牌，在 JUST 100 榜单社会责任类别中位列前茅，还受到道琼斯可持续发展世界指数、哈里斯民意调查声誉商数 (RQ®) 等其他声誉卓著的排名和奖项的肯定。UPS 公司的网址为 ups.com 或 pressroom.ups.com，企业博客网址为 ups.com/longitudes。公司的可持续发展电子刊物UPS Horizons位于ups.com/sustainabilitynewsletter。如欲直接了解 UPS 最新消息，请在 Twitter 上关注 @UPS_News。若要使用 UPS 寄件，请访问 ups.com/ship。
本稿，即已结束年度 10-K 表格的年报 2019 年 12 月 31 日和我们向证券交易委员会提交的其他文件，包含并涉及美国 1995 年私人证券诉讼改革法之意义的“前瞻性声明”。除了对于现时事实或过往事实的声明之外，所有包括“相信”、“计划”、“预期”、“预估”、“假定”、“打算”、“期望”、“目标”、“方案”和以上字词变化的声明条款以及类似的条款，均意指前瞻性声明。前瞻性陈述依据美国联邦 1933 年证券法第 27A 节与 1934 年证券交易法第 21E 节的安全港法规提出。
前瞻性声明受某些风险和不确定性限制，可能导致实际结果与历史经验和现行期望或预期的结果有显著的不同。这些风险和不确定性其中有许多是在我们的控制范围之外，包括但不限于：changes in general economic conditions, in the U.S. or internationally; significant competition on a local, regional, national and international basis; changes in our relationships with our significant customers; changes in the complex and stringent regulation in the U.S. and internationally (including tax laws and regulations); increased physical or data security requirements that may increase our costs of operations and reduce operating efficiencies; legal, regulatory or market responses to global climate change; results of negotiations and ratifications of labor contracts; strikes, work stoppages or slowdowns by our employees; the effects of changing prices of energy, including gasoline, diesel and jet fuel, and interruptions in supplies of these commodities; changes in exchange rates or interest rates; uncertainty from the expected discontinuance of LIBOR and transition to any other interest rate benchmark; our ability to maintain the image of our brand; breaches in data security; disruptions to the Internet or our technology infrastructure; interruptions in or impacts on our business from natural or man-made event or disasters including terrorist attacks, epidemics and pandemics; our ability to accurately forecast our future capital investment needs; exposure to changing economic, political and social developments in international and emerging markets; changes in business strategy, government regulations, or economic or market conditions that may result in substantial impairment of our assets; increases in our expenses or funding obligations relating to employee health, retiree health and/or pension benefits; potential additional tax liabilities in the U.S. or internationally; the potential for various claims and litigation related to labor and employment, personal injury, property damage, business practices, environmental liability and other matters; our ability to realize the anticipated benefits from acquisitions, joint ventures or strategic alliances; our ability to realize the anticipated benefits from our transformation initiatives; cyclical and seasonal fluctuations in our operating results; our ability to manage insurance and claims expenses; and other risks discussed in our filings with the Securities and Exchange Commission from time to time, including our Annual Report on Form 10-K for the year ended December 31, 2019 and subsequently filed reports. Such risks and uncertainties are currently amplified by and may continue to be amplified by the coronavirus pandemic and the impact it has had, and may continue to have on the global economy and our business, financial position and results of operations. You should consider the limitations on, and risks associated with, forward-looking statements and not unduly rely on the accuracy of information contained in such forward-looking statements. 除非法律规定所规定之外，我们并不承担任何更新前瞻性声明以反映在这些声明后发生的事件、情形、期望变化或意外事件的义务。
GAAP 与非 GAAP 财务指标调节
We supplement the reporting of our financial information determined under generally accepted accounting principles ("GAAP") with certain non-GAAP financial measures, including "adjusted" operating profit, operating margin, other income (expense), income before income taxes, income tax expense, net income and earnings per share. We periodically disclose free cash flow, free cash flow excluding discretionary pension contributions, and capital expenditures including principal repayments of capital lease obligations. Additionally, we supplement the reporting of revenue, revenue per piece and operating profit with non-GAAP measures that exclude the period-over-period impact of foreign currency exchange rate changes and hedging activities. 依据 GAAP 认定的同等指标也称为“公告”或“调整前”。
We consider quantitative and qualitative factors in assessing whether to adjust for the impact of items that may be significant or that could affect an understanding of our ongoing financial and business performance or trends. Examples of items for which we may make adjustments include but are not limited to: amounts related to mark-to-market gains or losses (non-cash); recognition of contingencies; gains or losses associated with mergers, acquisitions, divestitures and other structural changes; charges related to restructuring programs such as the implementation of our Transformation strategy; asset impairments (non-cash); amounts related to changes in tax regulations or positions; amounts related to changes in foreign currency exchange rates and the impact of any hedging activities; other pension and postretirement related items; and debt modifications.
我们认为，这些非 GAAP 指标可提供额外有意义的信息，协助财报用户了解我们的财务结果和现金流，并评估我们持续的表现，因为这些指标排除了可能不具我们潜在业务的指标，或是与其无关的项目，而且也可作为分析潜在业务趋势的实用基准。Management uses these non-GAAP financial measures in making financial, operating and planning decisions. We also use certain of these measures for the determination of incentive compensation awards.
非 GAAP 财务指标应该作为我们依据 GAAP 备制的公告结果的补充物，而非替代物。非 GAAP 财务信息不代表综合会计基础。因此，我们的非 GAAP 财务信息与其他公司报告的类似标题指标并不相当。
非 GAAP 经营利润、营业利润、税前收入、净利和每股收益排除了与重组计划相关成本的影响，包括转型战略成本。我们相信，在不考虑重组成本的短期影响下，这可以对于年度间财务绩效提供实用的比较。我们以调整为基础，对业绩进行评估。
我们相信货币中性营收、每件营收以及营业利润可供财务报表使用者了解公司产品与业绩的增长趋势。We evaluate the performance of our International Package and Supply Chain and Freight segments on this currency-neutral basis.
非 GAAP 退休金折现率（中性利率）营业利益不包括折现率变更对退休金服务成本在同期比较下的影响。We believe this allows users of our financial statements to understand growth trends in our products and results excluding the period over period movement in discount rates. 2020 年 1 月 1 日生效，我们开始使用退休金折现率（自然利率）营业利润来评估我们的业务，并加上目前业务营业利润的衡量标准。
We believe free cash flow, free cash flow excluding discretionary pension contributions and free cash flow plus principal repayments of capital lease obligations are important indicators of how much cash is generated by regular business operations and we use them as a measure of incremental cash available to invest in our business, meet our debt obligations and return cash to shareowners. Additionally, we believe that adjusting capital expenditures for principal repayments of capital lease obligations more appropriately reflects the overall cash that we have invested in capital assets.We calculate free cash flow as cash flows from operating activities less capital expenditures, proceeds from disposals of property, plant and equipment, and plus or minus the net changes in finance receivables and other investing activities. 排除自提退休金的自由现金流量，再加回在此期间提拨的任何自提退休金。