United Parcel Service, Inc. Selected Financial Data - Fourth Quarter (unaudited)

Transcription

1 Selected Financial Data - Fourth Quarter Three Months Ended $ % (amounts in millions, except per share data) Statement of Income Data: Revenue: U.S. Domestic Package $ 10,265 $ 10,004 $ % International Package 3,175 3,426 (251) -7.3% Supply Chain & Freight 2,614 2, % Total revenue 16,054 15, % Operating expenses: Compensation and benefits 8,504 9,188 (684) -7.4% Other 5,499 5,953 (454) -7.6% Total operating expenses 14,003 15,141 (1,138) -7.5% U.S. Domestic Package 1, % International Package % Supply Chain & Freight 187 (25) 212 N/A Total operating profit 2, , % Other income (expense): Investment income 3 (5) 8 N/A Interest expense (85) (87) 2-2.3% Total other income (expense) (82) (92) % Income before income taxes 1, , % Income tax expense N/A Net income $ 1,331 $ 453 $ % Net income as a percentage of revenue 8.3% 2.8% Per share amounts: Basic earnings per share $ 1.49 $ 0.50 $ % Diluted earnings per share $ 1.48 $ 0.49 $ 0.99 N/A Weighted-average shares outstanding: Basic (15) -1.7% Diluted (19) -2.1% As adjusted income data: U.S. Domestic Package (1) $ 1,346 $ 1,137 $ % International Package (1) % Supply Chain & Freight (1) % Total operating profit (1) 2,169 1, % Income before income taxes (1) $ 2,087 $ 1,760 $ % Net income (2) $ 1,410 $ 1,145 $ % Basic earnings per share (2) $ 1.58 $ 1.26 $ % Diluted earnings per share (2) $ 1.57 $ 1.25 $ % (1) 2015 operating profit and consolidated income before income taxes exclude the impact of an increase in pension expense due to a mark-tomarket loss recognized outside of a 10% corridor of $118 million, allocated between the U.S. Domestic Package segment ($62 mi llion), International Package segment ($44 million), and Supply Chain & Freight segment ($12 million) operating profit and consolidated income before income taxes exclude the impact of an increase in pension expense due to a mark-tomarket loss recognized outside of a 10% corridor of $1.062 billion, allocated between the U.S. Domestic Package segment ($660 million), International Package segment ($200 million), and Supply Chain & Freight segment ($202 million) operating profit and consolidated income before income taxes also exclude a $36 million pre -tax charge associated with transferring postretirement health and welfare benefit obligations to multiemployer healthcare plans for certain union employees. The cha rge is allocated between the U.S. Domestic Package segment ($33 million), the International Package segment ($1 million) and the Supply Chain & Freight segment ($2 million). (2) 2015 net income and earnings per share amounts exclude the after-tax impact of the adjustments described in (1), which decreased net income by $79 million net income and earnings per share amounts exclude the after -tax impact of the adjustments described in (1), which decreased net income by $692 million. Certain prior year amounts have been reclassified to conform to the current year presentation. 2/2/2016 6:56 AM 1 of 5

2 Selected Operating Data - Fourth Quarter Three Months Ended $ / # % Revenue (in millions): Next Day Air $ 1,760 $ 1,719 $ % Deferred 1,246 1, % Ground 7,259 7, % Total U.S. Domestic Package 10,265 10, % Domestic (89) -12.4% Export 2,394 2,540 (146) -5.7% Cargo and Other (16) -9.4% Total International Package 3,175 3,426 (251) -7.3% Supply Chain & Freight: Forwarding and Logistics 1,751 1, % Freight (94) -12.2% Other % Total Supply Chain & Freight 2,614 2, % Consolidated $ 16,054 $ 15,895 $ % Consolidated volume (in millions) 1,338 1, % Operating weekdays % Average Daily Package Volume (in thousands): Next Day Air 1,515 1, % Deferred 1,778 1, % Ground 15,321 15, % Total U.S. Domestic Package 18,614 18, % Domestic 1,704 1,748 (44) -2.5% Export 1,271 1, % Total International Package 2,975 3,016 (41) -1.4% Consolidated 21,589 21, % Average Revenue Per Piece: Next Day Air $ $ $ (1.39) -6.9% Deferred (0.83) -6.8% Ground % Total U.S. Domestic Package % Domestic (0.67) -10.2% Export (1.93) -6.0% Total International Package (1.04) -6.0% Consolidated $ 9.93 $ $ (0.16) -1.6% Certain prior year amounts have been reclassified to conform to the current year presentation. 2 of 5

3 Selected Financial Data - Year to Date Twelve Months Ended $ % (amounts in millions, except per share data) Statement of Income Data: Revenue: U.S. Domestic Package $ 36,747 $ 35,851 $ % International Package 12,149 12,988 (839) -6.5% Supply Chain & Freight 9,467 9, % Total revenue 58,363 58, % Operating expenses: Compensation and benefits 31,028 32,045 (1,017) -3.2% Other 19,667 21,219 (1,552) -7.3% Total operating expenses 50,695 53,264 (2,569) -4.8% U.S. Domestic Package 4,767 2,859 1, % International Package 2,137 1, % Supply Chain & Freight % Total operating profit 7,668 4,968 2, % Other income (expense): Investment income (7) -31.8% Interest expense (341) (353) % Total other income (expense) (326) (331) 5-1.5% Income before income taxes 7,342 4,637 2, % Income tax expense 2,498 1, % Net income $ 4,844 $ 3,032 $ 1, % Net income as a percentage of revenue 8.3% 5.2% Per share amounts: Basic earnings per share $ 5.38 $ 3.31 $ % Diluted earnings per share $ 5.35 $ 3.28 $ % Weighted-average shares outstanding: Basic (15) -1.6% Diluted (18) -1.9% As adjusted income data: U.S. Domestic Package (1) $ 4,829 $ 4,509 $ % International Package (1) 2,181 1, % Supply Chain & Freight (1) % Total operating profit (1) 7,786 7, % Income before income taxes (1) $ 7,460 $ 6,801 $ % Net income (2) $ 4,923 $ 4,389 $ % Basic earnings per share (2) $ 5.46 $ 4.79 $ % Diluted earnings per share (2) $ 5.43 $ 4.75 $ % (1) 2015 operating profit and consolidated income before income taxes exclude the impact of an increase in pension expense du e to a mark-tomarket loss recognized outside of a 10% corridor of $118 million, allocated between the U.S. Domestic Package segment ($62 mi llion), International Package segment ($44 million), and Supply Chain & Freight segment ($12 million) operating profit and consolidated income before income taxes exclude the impact of an increase in pension expense due to a mark-tomarket loss recognized outside of a 10% corridor of $1.062 billion, allocated between the U.S. Domestic Package segment ($660 million), International Package segment ($200 million), and Supply Chain & Freight segment ($202 million) also excludes a $1.102 billion pre-tax charge associated with transferring postretirement health and welfare benefit obligations to multiemployer healthcare plans for certain union employees. The charge was allocated between the U.S. Domestic Package segme nt ($990 million), the International Package segment ($28 million) and the Supply Chain & Freight segment ($84 million). (2) 2015 net income and earnings per share amounts exclude the after -tax impact of the adjustments described in (1), which decreased net income by $79 million net income and earnings per share amounts exclude the after -tax impact of the adjustments described in (1), which combined to a decrease in net income by $1.357 billion. Certain prior year amounts have been reclassified to conform to the current year presentation. 3 of 5

4 Selected Operating Data - Year to Date Twelve Months Ended $ / # % Revenue (in millions): Next Day Air $ 6,570 $ 6,581 $ (11) -0.2% Deferred 3,903 3, % Ground 26,274 25, % Total U.S. Domestic Package 36,747 35, % Domestic 2,425 2,784 (359) -12.9% Export 9,092 9,586 (494) -5.2% Cargo and Other % Total International Package 12,149 12,988 (839) -6.5% Supply Chain & Freight: Forwarding and Logistics 5,900 5, % Freight 2,881 3,048 (167) -5.5% Other % Total Supply Chain & Freight 9,467 9, % Consolidated $ 58,363 $ 58,232 $ % Consolidated volume (in millions) 4,654 4, % Operating weekdays % Average Daily Package Volume (in thousands): Next Day Air 1,316 1, % Deferred 1,313 1, % Ground 12,969 12, % Total U.S. Domestic Package 15,598 15, % Domestic 1,575 1,579 (4) -0.3% Export 1,151 1, % Total International Package 2,726 2, % Consolidated 18,324 18, % Average Revenue Per Piece: Next Day Air $ $ $ (0.76) -3.7% Deferred (0.87) -6.9% Ground % Total U.S. Domestic Package % Domestic (0.91) -13.1% Export (2.88) -8.5% Total International Package (1.52) -8.4% Consolidated $ $ $ (0.21) -2.0% Certain prior year amounts have been reclassified to conform to the current year presentation. 4 of 5

5 Reconciliation of Free Cash Flow Preliminary Year-to-Date (amounts in millions) Net cash from operations $ 7,414 Capital expenditures (2,384) Proceeds from disposals of PP&E 26 Net change in finance receivables 5 Other investing activities (12) Free cash flow $ 5,049 Amounts are subject to reclassification. 5 of 5