Growth across all segments, including freight forwarding, with US integrator tapping strong demand out of Asia.
UPS has today announced third quarter 2020 consolidated revenue of $21.2 billion, a 15.9% increase over the same period last year with growth across all business segments including freight forwarding.
Consolidated average daily volume increased 13.5% year over year.
Net income was $2.0 billion for the quarter, 11.8% above the same period in 2019, or 10.7% on an adjusted basis. Operating profit was $2.4 billion, up 11.0% compared to last year’s third quarter, or 9.9% on an adjusted basis.
“Our performance highlights the agility of our global integrated network amid the ongoing challenges of the pandemic. Our results were fueled by continued strong outbound demand from Asia and growth from small and medium-sized businesses,” said Carol Tomé, UPS CEO. “UPSers are everyday heroes who are keeping the world’s supply chains moving. I want to thank our team for their ongoing commitment to our customers and the communities we serve.”
In UPS’ Supply Chain and Freight segment, revenue increased by16.5% to US$$3,926 million “driven by.”
Adjusted operating profit totalled €302 million compared to €256 million a year earlier.
UPS’ biggest segment, US Domestic, recorded an average daily volume increase of 13.8%, “with growth across all products and continued elevated residential demand (e-commerce).”
Turning to the outlook, UPS is not providing consolidated revenue and diluted earnings per share guidance “due to the uncertainty around the timing and pace of the economic recovery.”
The company underlined that it was is unable to predict the extent of the business impact or the duration of the coronavirus pandemic, or reasonably estimate its operating performance in future quarters.
“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 (season) and generating cash returns.”
UPS recently activated a “complex” operating plan to deliver new Apple products to stores, distribution centres and customers in more than 20 countries. It said it was a ‘major carrier’ involved in the US and international launch of the iPhone 12, iPhone 12 Pro and iPad Air and had “worked for weeks” to ensure that pre-ordered devices are delivered to customers and retail stores as promised.
Earlier this month, the company took full control of its supply chain activities in Vietnam as part of the ongoing expansion of its business in the Asia Pacific region.
Source: Lloyd’s
