UPS: After a challenging 18-month period, our company returned to revenue and profit growth
UPS today announced third-quarter 2024 consolidated revenues of $22.2 billion, a 5.6% increase from the third quarter of 2023.
Consolidated operating profit was $2.0 billion, up 47.8% compared to the third quarter of 2023, and up 22.8% on a non-GAAP adjusted basis. Diluted earnings per share were $1.80 for the quarter; non-GAAP adjusted diluted earnings per share were $1.76, 12.1% above the same period in 2023.
For the third quarter of 2024, GAAP results include an after-tax net benefit of $36 million, or $0.04 per diluted share, comprised of a $152 million gain resulting from the divestiture of the Coyote Logistics business net of transformation strategy costs of $116 million.
“I want to thank all UPSers for their hard work and efforts. After a challenging 18-month period, our company returned to revenue and profit growth,” said Carol Tomé, UPS chief executive officer. “Peak season is nearly upon us, and we are ready to deliver another successful holiday season and continue the progress we demonstrated in the third quarter.”
U.S. Domestic Segment
• Revenue increased 5.8%, driven by a 6.5% increase in average daily volume.
• Operating margin was 6.2%; non-GAAP adjusted operating margin was 6.7%.
International Segment
• Revenue increased 3.4%, driven primarily by a 2.5% increase in revenue per piece.
• Operating margin was 18.1%; non-GAAP adjusted operating margin was 18.0%.
Supply Chain Solutions
• Revenue increased 8.0%, due primarily to growth in air and ocean forwarding and the continued onboarding of USPS air cargo.
• Operating margin was 8.5%; non-GAAP adjusted operating margin was 6.4%.
2024 Outlook
The company provides certain guidance on a non-GAAP adjusted basis because it is not possible to predict or provide a reconciliation reflecting the impact of future pension adjustments or other unanticipated events, which would be included in reported (GAAP) results and could be material.
In the third quarter, the company completed the disposition of Coyote Logistics. The expected revenue and profits associated with this business had been included in the company’s previously provided revenue and operating margin targets. For full-year 2024, UPS updates its consolidated revenue and operating margin targets, reflecting actual third-quarter results, the impact of the completed Coyote disposition and the company’s outlook for the fourth quarter.
• Consolidated revenue expected to be approximately $91.1 billion
• Lifts consolidated non-GAAP adjusted operating margin expectation to approximately 9.6%
• Capital expenditures of approximately $4.0 billion
• Dividend payments expected to be around $5.4 billion, subject to Board approval
