The operating profit of UPS Supply Chain and Freight increases in Q2 – Business, Ups, Q2, Business, Express Logistics

UPS announced adjusted earnings per share of $ 1.96 for the second quarter of 2019, with increasing demand for overnight service, generating strong financial results in the United States and proven cost management and management strategies. proven costs in the International and Supply Chain and Freight segments.

"Our transformation initiatives are driving increased efficiencies across the entire network and, combined with our growth strategies, UPS has enabled earnings growth across all segments," said David Abney, President and Chief Executive Officer. 39; UPS. "We have also announced the very large launch of new products and services, such as UPS My Choice for Business, the increased number of UPS access points and UPS Worldwide Economy, among others, for small and medium-sized businesses, all designed for generate additional income. profitable growth. "

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The amounts presented on an adjusted basis exclude the costs of the transformation strategy. Adjusted results for the second quarter of 2019 exclude a pre-tax charge of $ 21 million, or $ 0.02 per share after tax. Adjusted results for the second quarter of 2018 exclude a pre-tax charge of $ 263 million, or $ 0.23 per share after tax, mainly from the voluntary retirement program of UPS.

_{* "The "adjusted" and "adjusted" amounts presented in this release are non-GAAP financial measures. See the Appendix to this news release for an badysis of non-GAAP financial measures, including a reconciliation to the most closely correlated GAAP measure.}

For the whole of the company at 2Q 2019:

• Consolidated sales grew 3.4% to $ 18 billion, driven by higher average daily US volumes and the superior, currency neutral, International segment.
• Total operating income increased by almost 21% and 6.3% on an adjusted basis, with growth in all sectors.
• Total operating margin increased 170 basis points; Adjusted operating margin increased by 30 basis points.
• Capital expenditures for the year amount to approximately $ 2.9 billion to support network improvements.
• Year-to-date dividends per share increased 5.5% and the Company repurchased 4.8 million shares for approximately $ 500 million.

International leveraged its highly flexible network and targeted growing markets within the company's diversified revenue base. The sector posted its second-quarter best-ever profit and increased adjusted operating margins while avoiding market uncertainties.

• International volume fell slightly due to global macroeconomic pressure and difficult comparisons from one year to the next, as exports in 2Q 2018 rose 9.5%.
• Total revenue per room decreased by less than 1%, but increased by almost 2% after adjusting for the currency.
• International domestic revenue per room increased 0.3%, an increase of 5.6%, with no impact on exchange rates.
• Operating profit increased by more than 7%, or 1.7% on an adjusted basis.

Segment of supply chain and freight

Supply Chain and Freight increased operating profit to more than $ 270 million, a double-digit increase for the quarter. Successful cost management, made possible by strategies that lighten the company's badets, yielded strong financial results, while revenues were influenced by lower trading.

"UPS has generated profits across all industries," said Richard Peretz, chief financial officer of UPS. "Our performance has been fueled by the efficiency gains from investing in our network, the success of ongoing initiatives and our ability to operate in a constantly changing environment. We plan to continue this momentum in the coming quarters. "