Carol Tomé: our strategy is delivering positive financial results
UPS has announced fourth-quarter 2021 consolidated revenue of $27.8 billion, an 11.5% increase over the fourth quarter of 2020. Consolidated operating profit was $3.9 billion, up 91.0% compared to the fourth quarter of 2020, and up 37.7% on an adjusted basis. Diluted earnings per share were $3.52 for the quarter; adjusted diluted earnings per share were 35.0% above the same period in 2020.
For the fourth quarter of 2021, GAAP results include a total charge of $59 million, or $0.07 per diluted share, comprised of a non-cash, after-tax mark-to-market (MTM) pension charge of $14 million and after-tax transformation and other charges of $45 million.
“I want to thank all UPSers for their outstanding efforts throughout the holiday season and for once again delivering industry-leading service to our customers.” said Carol Tomé, UPS chief executive officer. “The execution of our strategy is delivering positive financial results and driving strong momentum as we move into 2022.”
Full-Year 2021 Consolidated Results
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- Revenue increased 15.0% to $97.3 billion.
- Operating profit was $12.8 billion; adjusted operating profit was $13.1 billion, up 50.8%.
- Operating margin was 13.2%; adjusted operating margin was 13.5%.
- Diluted EPS totaled $14.68; adjusted diluted EPS was $12.13, which excluded the impacts of the MTM pension gain and transformation and other charges.
- Return on invested capital was 30.8%, exceeding the company’s 2023 target.
- Cash from operations was $15.0 billion and free cash flow was $10.9 billion.
2022 Outlook
UPS expects to deliver its 2023 consolidated revenue and operating margin targets one year early. For the full year 2022, the company expects consolidated revenue of about $102 billion, an adjusted operating margin of approximately 13.7% and adjusted return on invested capital to be above 30%.
The company is planning capital expenditures to be 5.4% of revenue or approximately $5.5 billion, dividend payments to be around $5.2 billion, subject to Board approval, and share repurchases to be at least $1.0 billion. The effective tax rate is expected to be around 23.0%.
