-
UPS earned $22.2 billion in the third quarter of this year, up 5.6% from the same period last year
-
Consolidated operating profit was pegged at $2 billion, up 47.8% compared to the third quarter of last year
-
After a challenging 18-month period, the company returned to revenue and profit growth
UPS’ third-quarter revenues grew 5.6% to $22.2 billion from the same period last year, the company said.
Consolidated operating profit was pegged at $2 billion, up 47.8% compared to the third quarter of last year, and up 22,8% on a non-GAAP (generally accepted accounting principles) adjusted basis.
After a challenging 18-month period, UPS CEO Carol Tomé said, “our company returned to revenue and profit growth.”
“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,” the UPS executive added.
For the third quarter of 2024, GAAP results showed after-tax net of $36 million, or $0.04 per diluted share, comprised of a $152 million gain resulting from the divestiture of Coyote Logistics.
For the US market, revenue rose by 5.8%, driven by a 6.5% hike in average daily volume. Operating margin was 6.2%, with non-GAAP adjusted operating margin of 6.7%.
For the company’s international segment, revenue increased by 3.4%, driven mostly by a 2.5% increase in revenue per piece. Operating margin was 18.1%, while non-GAAP adjusted operating margin was 18%.
For its supply chain solutions, UPS revenue rose 8%, due mostly to growth in air and ocean forwarding and the continued onboarding of USPS air cargo. Operating margin was 8.5%, while non-GAAP adjusted operating margin was 6.4%.
For the rest of 2024, UPS 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,” said the company.
By yearend, consolidated revenue is expected to be about $91.1 billion. Expected capital expenditures will be around $4 billion, while dividend payments are expected to be approximately $5.4 billion, subject to board approval.
READ: UPS launches Asia-Australia next-day delivery services
