US-based company, United Parcel Service (UPS), has reported consolidated revenue of $24.9 billion USD for Q4 2020, a 21 per cent increase compared to Q4 2019.
Consolidated average daily volume increased 10.6 per cent year-over-year.
Operating profit was $2.2 billion USD, up 1.6 per cent compared to last year’s fourth quarter, or 26.0 per cent on an adjusted basis.
Net loss was $3.3 billion USD for the quarter; adjusted net income was $2.3 billion USD or 26.4 per cent above the same period last year.
For the fourth quarter of 2020, GAAP results include a total charge of $5.6 billion USD, or $6.38 USD per diluted share, comprised of a non-cash, after-tax mark-to-market (MTM) pension charge of $4.9 billion USD, an after-tax transformation charge of $114 million USD and an after-tax impairment charge of $545 million USD associated with the company’s decision to sell UPS Freight.
UPS’ fourth-quarter 2019 GAAP results included a total charge of $1.9 billion USD, or $2.23 USD per diluted share, comprised of a non-cash, after-tax MTM pension charge of $1.8 billion USD, an after-tax transformation charge of $39 million and a US Domestic after-tax legal reserve charge of $91 million USD.
“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 UPS CEO, Carol Tomé.
“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.”
FY2020 consolidated results:
- Revenue increased 14.2 per cent to $84.6 billion USD.
- Operating profit was $7.8 billion USD; adjusted operating profit was $8.7 billion USD, up 7.0 per cent.
- Diluted EPS totalled $1.64 USD; adjusted diluted EPS was $8.23 USD.
- Capital expenditures were $5.4 billion USD, or on an adjusted basis $5.6 billion USD.
- Annual free cash flow was $5.1 billion USD, including $3.1 billion USD in pension contributions.
- Dividends paid were $3.6 billion USD, a per-share increase of 5.2 per cent over the prior year.
UPS is one of the world’s largest package delivery companies and provides a broad range of integrated logistics solutions to customers in more than 220 countries and territories.
In recent news, UPS announced a $800 million USD divestment.