UPS Q4 '19 results out

30/01/2020

PRESS RELEASEExecution, Strategies and Investments Drive Continued Gains and Uniquely Position UPS for Future Success

4Q19 Operating Profit Growth and Margin Expansion in All Segments
4Q19 Positive Operating Leverage Driven by Lower Unit Cost in the U.S.
4Q19 Diluted EPS of ($0.12); Adjusted* Diluted 4Q19 EPS Up 8.8% to $2.11
4Q19 U.S. Daily Volume Grew Nearly 9%; Next Day Air Volume Up Nearly 26%
2019 Cash from Operations of $8.6B; Adjusted Free Cash Flow Topped $4.1B
Announces Full-Year 2020 Adjusted EPS Guidance Range of $7.76 to $8.06
Speeding up time-in-transit and broadening weekend services in 2020 to capture profitable growth from Small- and Medium-sized Businesses (SMB)

ATLANTA, Jan. 30, 2020 (GLOBE NEWSWIRE) — UPS (NYSE:UPS) today announced fourth-quarter 2019 adjusted earnings per share of $2.11, an 8.8% increase over the same period last year. The company’s results highlight the strong volume growth in the U.S. Domestic segment and the impact of successful execution from all segments.

“Our network improvements from transformation enabled UPS to embrace a surge in demand for air products while at the same time generate productivity improvements and positive operating leverage,” said David Abney, UPS chairman and CEO. “Looking to 2020, we will continue to adapt to the changing environment, strengthen our network and create new solutions to support our strategic growth initiatives and help our customers grow and compete.”

In the fourth quarter of 2019, the company incurred a non-cash, after-tax mark-to-market (MTM) pension charge of $1.8 billion, an after-tax transformation charge of $39 million, and U.S. Domestic after-tax legal contingency and expense charges of $91 million, predominantly related to the New York cigarette case. The total impact to EPS was $2.23 per diluted share. MTM pension charges of $1.42 per diluted share were included in the company’s fourth-quarter GAAP results in the prior-year period.

– To read the full release, please click here.

– Seeking Alpha’s “United Parcel Service EPS in-line, misses on revenue” can be found here.

– Read our Premium coverage earlier this month: “UPS – time to stop the ‘fly-by-night’ buyback scheme“.

– SEC: Form 8-K here.