For the year ending December 31, 2020, revenue reached $84.6bn, an increase of 14.6% y-o-y. Operating profit was $7.8bn; adjusted operating profit was $8.7bn, up 7.0%.
The company’s consolidated revenue for Q4-20 amounted to $24.9bn, a 21.0% increase over the fourth quarter of 2019. Consolidated average daily volume increased 10.6% year over year. Operating profit was $2.2bn, up 1.6% compared to last year’s fourth quarter, or 26.0% on an adjusted basis. Net loss was $3.3bn for the quarter; adjusted net income was $2.3bn or 26.4% above the same period last year.
In Q4-20 UPS’ U.S. Domestic Segment saw revenue increase by 17.4% to $15.7bn, led by growth from small and medium-sized businesses. Revenue per piece increased by 7.8%, driven by Ground residential. Operating margin was 7.9%; adjusted operating margin was 8.8%.
The International Segment’s revenue rose by 26.8% in the fourth quarter, led by Asia and Europe as Average daily volume grew 21.9%, with export growth from all regions. Operating margin was 24.1%; adjusted operating margin was 24.3%.
The company’s Supply Chain and Freight Segment revenue increased 29.0% in the fourth quarter, with strong market demand in nearly all businesses including freight forwarding out of Asia and UPS Healthcare. Operating margin was -5.2%; adjusted operating margin was 7.6%.
“Our financial performance in the fourth quarter exceeded our expectations, and I thank all UPSers for their extraordinary efforts to deliver industry-leading service through the holidays,” said Carol Tomé, UPS Chief Executive Officer. “I’d also like to thank our customers who worked with us during this challenging year. As we look past 2020 into the new year, we are optimistic. During the fourth quarter, we began transporting COVID-19 vaccines and we stand ready to deliver hope and health to people around the world.”
Given continued economic uncertainty due to the global pandemic, UPS is not providing revenue or diluted earnings per share guidance.
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