UPS Releases 3Q 2019 Earnings789

조지아주 애틀란타

Operating Profit Up More Than 20%, with Margin Expansion in All Segments

• 3Q19 EPS of $2.01, Up More Than 16%; Adjusted* EPS Up 13.7% to $2.07
• U.S. Daily Volume Grew Above 9%; Next Day Air Volume Jumped Nearly 24%
• U.S. Operating Profit Rose Over 28%; Grew Nearly 26% on an Adjusted Basis
• Positive Operating Leverage in U.S. Driven by Lower Unit Cost
• International Operating Profit Up 24.4%; and 20.3% on an Adjusted Basis
• Supply Chain and Freight Operating Margin of 7.3%; Adjusted Margin of 7.6%
• Reaffirms 2019 Adjusted EPS and Raises Adjusted FCF Target to Over $4.0B

UPS (NYSE:UPS) today announced third-quarter 2019 adjusted earnings per share of $2.07, a 13.7% increase over the same period last year. The company delivered strong operating profit growth of more than 20%, led by the U.S. Domestic and International segments. U.S. Domestic performed exceptionally well year-over-year, with volume gains across all products.

“Our results reflect significant progress from our transformation initiatives, and our ability to generate growth and deliver increased efficiencies in a dynamic economic environment,” said David Abney, UPS chairman and CEO. “As we recently announced, we continue to forge new partnerships and create innovative solutions to accelerate growth in the most attractive opportunities.”

Transformation strategy costs are excluded from adjusted results. Adjusted third-quarter 2019  results exclude a pre-tax transformation charge of $63 million, or $0.06 per diluted share after tax.  Adjusted third-quarter 2018 results excluded a pre-tax transformation charge of $97 million, or $0.09 per share after tax.  

* “Adjusted” and amounts presented in this release are non-GAAP financial measures. See the appendix to this release for a discussion of non-GAAP financial metrics, including a reconciliation to the most closely correlated GAAP measure.

For the total company in 3Q 2019:

• Consolidated revenue increased 5% to $18.3 billion, driven by strong average daily volume growth in the U.S.    
• Total operating profit growth was very strong at more than 23%, and 20.1% on an adjusted basis, led by the U.S. Domestic and International segments.
• Total operating margin expanded 170 basis points**; adjusted operating margin expanded 150 basis points.
• Adjusted capital expenditures for the year are approximately $4.5 billion to support network enhancements.
• Year-to-date cash from operations was $5.7 billion and adjusted free cash flow grew to $3.2 billion.
• Dividends per share increased 5.5%, and the company repurchased 7 million shares for approximately $753 million year-to-date.

미국 국내 시장

In the U.S. Domestic segment, total volume across all products grew more than 9%.  Next Day Air increased nearly 24%; Deferred Air grew more than 17%; and Ground volume rose nearly 7%.  Growth came from both B2C and B2B shippers, led by the retail, healthcare and high-tech sectors.

“The investments we are making in new facilities and automation in our network, coupled with solid execution of our strategies, are producing strong results, including strong, positive operating leverage,” said Abney.  “We see significant near-term benefits to both top- and bottom-line results in the U.S. and continued momentum into the future.”

• Revenue grew more than $1 billion, a nearly 10% increase.
• Operating profit increased 28.1%, and nearly 26% on an adjusted basis.
• Operating margin was 10.6%; adjusted operating margin expanded 130 basis points.
• Unit costs were lower by 2.7%; on an adjusted basis, down 2.5%, contributing to positive operating leverage.  

국제 시장

The International segment reported strong operating profit and expanded operating margin. The company’s performance is the result of a number of items in the quarter, including strong cost control, good execution and targeted domestic and export growth.

• International saw export volume growth on intra-European trade lanes and virtually all Asia trade lanes except Asia-U.S.
• International domestic revenue per piece fell less than 1%, but grew 2.3% when adjusting for currency.
• Operating profit increased more than 24%, or by 20.3% on an adjusted basis.
• Industry-leading operating margin remained strong at 19.1%; adjusted operating margin expanded 320 basis points**.

• **One basis point equals one-hundredth of a percentage point.

공급망 및 중량 화물 부문

The Supply Chain and Freight segment’s performance was driven by small and medium-sized customers that generate higher-quality revenue, as well as cost management actions throughout the network.

• Operating margin expanded to 7.3%, and to 7.6% on an adjusted basis.
• Logistics revenue increased more than 7% from growth in the healthcare, retail and manufacturing sectors.
• UPS Freight produced an increase in revenue per LTL (less-than-truckload) hundredweight of nearly 4%, driven by its focus on small and medium-sized businesses.
• The Forwarding unit adjusted costs and partially offset the negative revenue impact of trade uncertainty.

전망

UPS는 향후 시가 평가 연금 조정 또는 기타 예상치 못한 사건의 영향을 반영하는 조정을 예측 또는 제공하는 것이 불가능하므로 조정된 (비 GAAP) 기준에 대한 지침을 제공하며, 이는 보고된 (GAAP) 실적에 포함되고 중요한 내용일 수 있습니다.

“UPS delivered solid performance for the third quarter,” said Brian Newman, UPS’s chief financial officer. “Positive impacts from our transformation initiatives are visible in our results as we continue to improve network efficiencies and create new solutions that will open more growth opportunities well into the future.”

• The company reaffirms full-year adjusted diluted EPS in the range of $7.45 to $7.75.
• Guidance assumes no further deterioration regarding global trade uncertainty or U.S. industrial weakness.
• Adjusted free cash flow for the year is projected to be over $4.0 billion.
• Capital investments have been reduced in both 2019 and 2020 by about $500 million each year. Network automation targets and other transformation goals remain unchanged.
• The effective tax rate for the full year 2019 is estimated to be between 22% and 23%.
• Transformation charges are not included in the adjusted guidance.

**One basis point equals one-hundredth of a percentage point.

전화 회의 정보

UPS CEO David Abney, CFO Brian Newman and former CFO Richard Peretz will discuss third-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, 2019년 10월 22일.  That call will be open to others through a live Webcast.  To access the call, go to www.investors.ups.com and click on “Earnings Webcast.” 추가 재무 정보는 “Financials” 아래에 www.investors.ups.com에 게시되어 있는 재무 세부 일정에 포함되어 있으며 Form 8-K의 임시 보고서에 대한 증거로 SEC에 제출한 것입니다.

UPS 소개

UPS는 세계 최대 규모의 특송 및 공급망 서비스의 글로벌 리더이며, 국제 무역을 촉진하고, 비즈니스를 효율적으로 운영하기 위해 다양한 최신 기술를 겸비한 선도적인 글로벌 교역 전문 기업이다. 애틀랜타에 본사를 둔 UPS는 전 세계 220개 이상의 국가 및 지역에 서비스를 제공하고 있습니다. UPS는 뉴스위크지가 선정한 배송 및 배달 부문 미국 최고의 고객 서비스 회사, 포브스가 선정한 운송 분야의 가장 가치 있는 브랜드를 수상했으며, 사회적 책임을 위한 JUST 100 리스트, 다우 존스의 지속 가능성 세계 지수 및 해리스 폴 평판 지수 등 기타 권위 있는 순위 및 상에서 상위 순위에 올랐습니다. The company can be found on the web at ups.com or pressroom.ups.com and its corporate blog can be found at ups.com/longitudes The company’s sustainability eNewsletter, UPS Horizons, can be found at ups.com/sustainabilitynewsletter. UPS 소식을 들으시려면 Twitter에서 @UPS_News를 팔로우하세요. UPS 발송 서비스를 이용하시려면 ups.com/ship을 방문해 주세요.

미래 예측 진술

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 direction, prospects and future results, involve certain risks and uncertainties.

Certain factors may cause actual results to differ materially from those contemplated by the forward-looking statements, including changes in economic and other conditions in the markets in which we operate, governmental regulations (including tax laws and regulations), our competitive environment, the facts or assumptions underlying our health and pension benefit funding obligations, the results of negotiation and ratification of labor contracts, the impact of any strikes, work stoppages or 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 Securities and Exchange Commission, which discussions are incorporated herein by reference.

GAAP 및 비 GAAP 재무 측정치 조정

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, other income (expense), pre-tax income, net income and earnings per share. 또한, UPS는 잉여 현금 흐름, 재량적 연금 기여금을 제외한 잉여 현금 흐름, 자본 리스 채무의 원금 변제를 포함한 자본적 지출을 주기적으로 공개합니다. GAAP에 따라 결정된 상응하는 측정치도 "보고된" 또는 "조정되지 않은"으로 지칭합니다.

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); settlement 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.

We believe that these non-GAAP measures provide additional meaningful information to assist users of our financial statements in understanding our financial results, cash flows and assessing our ongoing performance because they exclude items that may not be indicative of, or are unrelated to, our underlying operations and may provide a useful baseline for analyzing trends in our underlying businesses. 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.

비 GAAP 재무 측정치는 GAAP에 따라 준비된 보고 실적을 대체하는 것이 아니며 함께 고려되어야 합니다. 당사의 비 GAAP 재무 정보는 포괄적 회계 기준을 나타내지 않습니다. 따라서 당사의 비 GAAP 재무 정보는 다른 기업에서 유사한 제목으로 발표하는 지표와 유사하지 않을 수 있습니다.

구조조정 프로그램과 관련된 비용, 혁신 전략 비용

We supplement the presentation of our operating profit, operating margin, pre-tax income, net income and earnings per share with similar non-GAAP measures that exclude the impact of costs related to restructuring programs, including Transformation strategy costs.  We believe this adjusted information provides a useful comparison of year-to-year financial performance without considering the short-term impact of restructuring costs. UPS는 이 조정된 기준으로 성과를 평가합니다.

외화 환율 및 헤징 활동 변동의 영향

We supplement the reporting of our 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. 당사는 통화 중립 수익, 단위당 수익 및 영업 이익 정보를 바탕으로 사용자가 재무제표를 통해 당사 제품 및 실적의 성장 추세를 이해할 수 있다고 생각합니다. We evaluate the performance of our International Package and Supply Chain and Freight segments on this currency-neutral basis.

통화 중립 매출, 개당 매출 및 영업 이익은 현 기간에 보고된 미화 매출, 개당 매출 및 영업 이익을 현 기간의 평균 환율로 나누어 계산하여 현 기간 현지 통화 매출, 개당 매출 및 영업 이익을 도출합니다. 그런 다음, 도출된 금액을 이전 연도(기간별 외환 헤징 활동 영향 포함)의 달별로 비교 가능한 실적을 변환하는 데 사용되는 평균 외환 환율로 곱합니다. 현 기간에 보고된 미화 매출, 개당 매출 및 영업 이익과 도출된 현 기간 미화 매출, 개당 매출 및 영업 이익 간의 차이는 기간별 통화 변동의 영향입니다.

잉여 현금 흐름과 조정된 자본 지출

We supplement the reporting of cash flows from operating activities with free cash flow, free cash flow excluding discretionary pension contributions and free cash flow plus principal repayments of capital lease obligations, non-GAAP liquidity measures. We believe these free cash flow measures 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. 재량적 연금 기여금을 제외한 잉여 현금 흐름은 해당 기간 동안의 재량적 연금 기여금을 다시 가산합니다.