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

Transcription

1 Selected Financial Data - Third Quarter (amounts in millions, except per share data) Statement of Income Data: Revenue: U.S. Domestic Package $ 9,649 $ 9,289 $ % International Package 3,364 3, % Supply Chain & Freight 2,965 2, % Total revenue 15,978 14,928 1, % Operating expenses: Compensation and benefits 8,221 7, % Other 5,722 5, % Total operating expenses 13,943 12,894 1, % Operating profit: U.S. Domestic Package 1,182 1,252 (70) -5.6% International Package % Supply Chain & Freight % Total operating profit 2,035 2, % Other income (expense): Investment income and other % Interest expense (111) (94) (17) 18.1% Total other income (expense) (91) (81) (10) 12.3% Income before income taxes 1,944 1,953 (9) -0.5% Income tax expense (3) -0.4% Net income $ 1,264 $ 1,270 $ (6) -0.5% Net income as a percentage of revenue 7.9% 8.5% Per share amounts: Basic earnings per share $ 1.45 $ 1.44 $ % Diluted earnings per share $ 1.45 $ 1.44 $ % Weighted-average shares outstanding: Basic (11) -1.3% Diluted (11) -1.2% Certain prior year amounts have been reclassified to conform to the current year presentation. 1 of 11

2 Selected Operating Data - Third Quarter Revenue (in millions): Next Day Air $ 1,767 $ 1,706 $ % Deferred 1, % Ground 6,880 6, % Total U.S. Domestic Package 9,649 9, % Domestic % Export 2,556 2, % Cargo and Other % Total International Package 3,364 3, % Supply Chain & Freight: Forwarding and Logistics 1,989 1, % Freight % Other % Total Supply Chain & Freight 2,965 2, % Consolidated $ 15,978 $ 14,928 $ 1, % Consolidated volume (in millions) 1,196 1, % Operating weekdays (1) -1.6% Average Daily Package Volume (in thousands): Next Day Air 1,470 1, % Deferred 1,240 1,260 (20) -1.6% Ground 13,175 12, % Total U.S. Domestic Package 15,885 15, % Domestic 1,704 1, % Export 1,399 1, % Total International Package 3,103 2, % Consolidated 18,988 18, % Average Revenue Per Piece: Next Day Air $ $ $ (0.51) -2.6% Deferred % Ground % Total U.S. Domestic Package % Domestic % Export (1.35) -4.4% Total International Package % Consolidated $ $ $ % Certain prior year amounts have been reclassified to conform to the current year presentation. 2 of 11

3 Supplemental Analysis of and UPS Freight Revenue Per Piece % Change 2017* % Change Average Revenue Per Piece: Domestic $ 6.27 $ % $ (0.27) $ % Export % % Total International Package $ $ % $ 0.06 $ % Consolidated $ $ % $ 0.01 $ % Revenue % Change 2017* % Change Revenue (in millions): U.S. Domestic Package $ 9,649 $ 9, % $ - $ 9, % International Package 3,364 3, % 12 3, % Supply Chain & Freight 2,965 2, % (9) 2, % Total revenue $ 15,978 $ 14, % $ 3 $ 15, % Operating Profit % Change 2017* % Change Operating profit (in millions): U.S. Domestic Package $ 1,182 $ 1, % $ - $ 1, % International Package % % Supply Chain & Freight % % Total operating profit $ 2,035 $ 2, % $ 62 $ 2, % UPS Freight Selected Operating Data - Third Quarter LTL revenue (in millions) $ 673 $ 616 $ % LTL revenue per LTL hundredweight $ $ $ % LTL shipments (in thousands) 2,589 2, % LTL shipments per day (in thousands) % LTL gross weight hauled (in millions of pounds) 2,750 2, % LTL weight per shipment (in pounds) 1,062 1, % Operating weekdays (1) -1.6% Certain prior year amounts have been reclassified to conform to the current year presentation. 3 of 11

4 Detail of Other Operating Expenses - Third Quarter (in millions) Repairs and maintenance $ 398 $ 386 $ % Depreciation and amortization % Purchased transportation 2,652 2, % Fuel % Other occupancy % Other expenses 1,182 1, % Total other operating expenses $ 5,722 $ 5,037 $ % Earnings Per Share and Share Data - Third Quarter (amounts in millions, except per share data) Numerator: Net income $ 1,264 $ 1,270 Denominator: Weighted-average shares Deferred compensation obligations 1 1 Vested portion of restricted units 4 3 Denominator for basic earnings per share Effect of dilutive securities: Restricted units 4 4 Stock options 1 1 Denominator for diluted earnings per share Basic earnings per share $ 1.45 $ 1.44 Diluted earnings per share $ 1.45 $ 1.44 Detail of shares outstanding as of, 2017: Class A shares 175 Class B shares 687 Total shares outstanding 862 Certain prior year amounts have been reclassified to conform to the current year presentation. 4 of 11

5 Selected Financial Data - Year to Date (amounts in millions, except per share data) Statement of Income Data: Revenue: U.S. Domestic Package $ 28,929 $ 27,388 $ 1, % International Package 9,585 9, % Supply Chain & Freight 8,529 7, % Total revenue 47,043 43,975 3, % Operating expenses: Compensation and benefits 24,457 23,448 1, % Other 16,551 14,632 1, % Total operating expenses 41,008 38,080 2, % Operating profit: U.S. Domestic Package 3,653 3, % International Package 1,739 1,763 (24) -1.4% Supply Chain & Freight % Total operating profit 6,035 5, % Other income (expense): Investment income and other % Interest expense (324) (281) (43) 15.3% Total other income (expense) (275) (243) (32) 13.2% Income before income taxes 5,760 5, % Income tax expense 1,954 1,982 (28) -1.4% Net income $ 3,806 $ 3,670 $ % Net income as a percentage of revenue 8.1% 8.3% Per share amounts: Basic earnings per share $ 4.36 $ 4.15 $ % Diluted earnings per share $ 4.34 $ 4.13 $ % Weighted-average shares outstanding: Basic (13) -1.5% Diluted (13) -1.5% Certain prior year amounts have been reclassified to conform to the current year presentation. 10/26/ of 11

6 Selected Operating Data - Year to Date Revenue (in millions): Next Day Air $ 5,183 $ 4,918 $ % Deferred 2,992 2, % Ground 20,754 19,689 1, % Total U.S. Domestic Package 28,929 27,388 1, % Domestic 1,906 1, % Export 7,298 6, % Cargo and Other (17) -4.3% Total International Package 9,585 9, % Supply Chain & Freight: Forwarding and Logistics 5,709 4, % Freight 2,240 2, % Other % Total Supply Chain & Freight 8,529 7, % Consolidated $ 47,043 $ 43,975 $ 3, % Consolidated volume (in millions) 3,572 3, % Operating weekdays (1) -0.5% Average Daily Package Volume (in thousands): Next Day Air 1,393 1, % Deferred 1,246 1, % Ground 13,069 12, % Total U.S. Domestic Package 15,708 15, % Domestic 1,667 1, % Export 1,327 1, % Total International Package 2,994 2, % Consolidated 18,702 17, % Average Revenue Per Piece: Next Day Air $ $ $ (0.03) -0.2% Deferred % Ground % Total U.S. Domestic Package % Domestic % Export (1.93) -6.3% Total International Package (0.33) -2.0% Consolidated $ $ $ % Certain prior year amounts have been reclassified to conform to the current year presentation. 6 of 11

7 Supplemental Analysis of and UPS Freight Revenue Per Piece % Change 2017* % Change Average Revenue Per Piece: Domestic $ 5.99 $ % $ 0.12 $ % Export % % Total International Package $ $ % $ 0.61 $ % Consolidated $ $ % $ 0.09 $ % Revenue % Change 2017* % Change Revenue (in millions): U.S. Domestic Package $ 28,929 $ 27, % $ - $ 28, % International Package 9,585 9, % 352 9, % Supply Chain & Freight 8,529 7, % 15 8, % Total revenue $ 47,043 $ 43, % $ 367 $ 47, % Operating Profit % Change 2017* % Change Operating profit (in millions): U.S. Domestic Package $ 3,653 $ 3, % $ - $ 3, % International Package 1,739 1, % 295 2, % Supply Chain & Freight % % Total operating profit $ 6,035 $ 5, % $ 296 $ 6, % UPS Freight Selected Operating Data - Year to Date LTL revenue (in millions) $ 1,943 $ 1,780 $ % LTL revenue per LTL hundredweight $ $ $ % LTL shipments (in thousands) 7,739 7, % LTL shipments per day (in thousands) % LTL gross weight hauled (in millions of pounds) 8,131 7, % LTL weight per shipment (in pounds) 1,051 1, % Operating weekdays (1) -0.5% Certain prior year amounts have been reclassified to conform to the current year presentation. 7 of 11

8 Detail of Other Operating Expenses - Year to Date (in millions) Repairs and Maintenance $ 1,180 $ 1,150 $ % Depreciation and Amortization 1,688 1, % Purchased Transportation 7,461 6,306 1, % Fuel 1,873 1, % Other Occupancy % Other Expenses 3,504 3, % Total Other Operating Expenses $ 16,551 $ 14,632 $ 1, % Earnings Per Share and Share Data - Year to Date (amounts in millions, except per share data) Numerator: Net income $ 3,806 $ 3,670 Denominator: Weighted-average shares Deferred compensation obligations 1 1 Vested portion of restricted units 4 4 Denominator for basic earnings per share Effect of dilutive securities: Restricted units 3 3 Stock options 1 1 Denominator for diluted earnings per share Basic earnings per share $ 4.36 $ 4.15 Diluted earnings per share $ 4.34 $ 4.13 Certain prior year amounts have been reclassified to conform to the current year presentation. 8 of 11

9 Consolidated Balance Sheets -, 2017 and December 31, 2016 (amounts in millions), December 31, ASSETS Current Assets: Cash and marketable securities $ 4,461 $ 4,567 Other current assets 8,449 9,282 Total Current Assets 12,910 13,849 Property, Plant and Equipment 47,204 43,674 Less accumulated depreciation and amortization 26,216 24,874 20,988 18,800 Other Assets 7,458 7,728 $ 41,356 $ 40,377 LIABILITIES AND SHAREOWNERS' EQUITY Current Liabilities $ 12,167 $ 11,730 Long-Term Debt 14,355 12,394 Pension and Postretirement Benefit Obligations 10,075 12,694 Deferred Taxes, Credits and Other Liabilities 3,220 3,130 Shareowners' Equity 1, $ 41,356 $ 40,377 Amounts are subject to reclassification. Certain prior year amounts have been reclassified to conform to the current year presentation. 9 of 11

10 Selected Cash Flow Data Net Increase (Decrease) in Cash and Cash Equivalents Preliminary Year-to-Date (amounts in millions) Cash flows from operating activities $ 4,418 Cash flows used in investing activities (3,618) Cash flows used in financing activities (914) Effect of exchange rate changes on cash and cash equivalents 56 Net (decrease) in cash and cash equivalents $ (58) Reconciliation of Free Cash Flow (non-gaap measure) Preliminary Year-to-Date (amounts in millions) Cash flows from operating activities $ 4,418 Capital expenditures (3,708) Proceeds from disposals of PP&E 18 Net change in finance receivables (1) Other investing activities 20 Free cash flow (non-gaap measure) $ 747 Amounts are subject to reclassification. 10 of 11

11 Aircraft Fleet - As of, 2017 Owned and Leases & Charters Description Capital Leases from Others On Order Under Option Operating: Boeing Boeing Boeing BCF Airbus A Boeing MD Boeing F Boeing BCF Boeing 747-8F Other Total of 11