UPS Releases Fourth Quarter 2020 Earnings

UPS is one of the world's largest package delivery companies, with revenue of $84.6 billion in 2020 and provides a wide range of integrated logistics solutions to customers in more than 220 countries and regions.

Data shows that UPS's consolidated revenue in the fourth quarter of 2020 was US$24.9 billion , a year-on-year increase of 21.0%. The consolidated average daily transaction volume increased by 10.6% year-on-year. Operating profit was US$2.2 billion, an increase of 1.6% from the fourth quarter of last year, or 26.0% on an adjusted basis. The net loss for the quarter was US$3.3 billion; adjusted net income was US$2.3 billion, an increase of 26.4% from the same period last year.

Total expenses for the fourth quarter of 2020 were $5.6 billion, or $6.38 per diluted share, on a GAAP basis , and included $4.9 billion of non-cash, after-tax mark-to-market (MTM) pension expense, $114 million of pre-tax conversion charges related to the company's decision to sell UPS Freight and $545 million of after-tax impairment charges.

The Company's fourth quarter 2019 GAAP results included total charges of $1.9 billion, or $2.23 per diluted share, consisting of $1.8 billion of non-cash after-tax MTM pension charges, $39 million of after-tax transformation charges and a U.S. domestic after-tax statutory reserve of $91 million.

“Our fourth-quarter financial results exceeded our expectations, and I thank all UPSers for their extraordinary efforts to provide industry-leading service during the holiday season,” said Carol Tomé, UPS CEO . “I also want to thank our customers who partnered with us during this challenging year. As we turn 2020 into the new year, we are optimistic. In the fourth quarter, we began shipping COVID-19 vaccines and stand ready to bring hope and health to people around the world.”

Details of UPS's full-year 2020 consolidated results : Revenue increased 14.2% to $84.6 billion. Operating profit was $7.8 billion; adjusted operating profit was $8.7 billion, up 7.0%. Capital expenditures were $5.4 billion, or $5.6 billion on an adjusted basis. Annual free cash flow was $5.1 billion, including $3.1 billion for pensions.

UPS did not provide revenue or diluted earnings per share guidance given the ongoing economic uncertainty caused by the global pandemic . It provided full-year guidance for capital allocation.

UPS's full-year capital allocation plan for 2021 is as follows:

Planned capital expenditures are approximately $4 billion , and the dividend is expected to grow, pending board approval. $2.5 billion of long-term debt will be repaid as it matures , and the effective tax rate is expected to be approximately 23.5%. The company has no plans to repurchase shares or access the debt capital markets in 2021.

ups

2020

Fourth quarter earnings

logistics