UPS releases Q3 2020 earnings

UPS has announced Q3 2020 consolidated revenue of $21.2bn, a 15.9% increase Y-o-Y.

UPS has announced Q3 2020 consolidated revenue of $21.2bn, a 15.9% increase Y-o-Y. Consolidated average daily volume increased 13.5% Y-o-Y. Net income was $2.0bn for the quarter, 11.8% increase Y-o-Y. Operating profit was $2.4bn, up 11.0% Y-o-Y.

“Our performance highlights the agility of our global integrated network amid the ongoing challenges of the pandemic. Our results were fuelled by continued strong outbound demand from Asia and growth from small and medium-sized businesses,” said Carol Tomé, UPS chief executive officer. 

The domestic segment revenue increased to $13.2bn, compared to $11.5bn in Q3 2019; while the average daily volume increased 13.8%, with growth across all products and continued elevated residential demand. The operating margin was 8.3%, with operating profits down by $118m. 

The international segment revenue increased to $4.1bn, compared to $3.5bn in Q3 2019. The average daily volume grew 12.1%, with double-digit export volume growth globally and continued strong outbound demand from Asia. The operating margin was 23.6%, while operating profit increased to $966m from $667 in Q3 2019.

The supply chain and freight segment revenue increased to $3.9bn from $3.4bn in Q3 2019, increasing 16.5% driven by strong freight forwarding demand out of Asia. Operating margin was 7.6%, while operating profit increased to $299m from $245 in Q3 2019.

“Our Better, not Bigger approach had a positive impact on our performance in the quarter, specifically through the revenue-quality actions we’ve taken. Additionally, we recently launched new initiatives to further reduce our costs,” said Brian Newman, UPS chief financial officer.  “Looking ahead to the fourth quarter, we are collaborating with our customers and using our proven tools to control volume and ensure the resiliency of our network.  We are focused on delivering a successful peak and generating cash returns.”

Source: UPS

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