UPS Sales Intelligence Blog

UPS Sales Intelligence Blog 

United Parcel Service, Inc.
55 Glenlake Parkway, NE
Atlanta 30328
United States
404 828 6000
http://www.ups.com

 

UPS Blog Highlights

United Parcel Service, Inc. (NYSE: UPS) is ranked #43 on the 2020 Fortune 500 list

  • UPS has a new CEO, Carol Tomé, UPS Chief Executive Officer, effective June 1
  • How will UPS solve the Amazon dilemma?
  • UPS to Add Capacity By Expanding Facility Air Operations as Demand Surges
  • UPS Says Residential And Medical Deliveries Boost Q2 Results
  • UPS Promotes Laura Lane To Chief Corporate Affairs And Communications Officer

Social Media properties
Facebook: https://www.facebook.com/ups
LinkedIn: https://www.linkedin.com/company/ups/
Twitter: https://twitter.com/UPS
YouTube: https://www.youtube.com/ups

Latest UPS Earnings Call Highlights

July 30, 2020

Executives In Attendance

Analysts in Attendance

  • David Ross – Stifel
  • Scott Group – Wolfe Research
  • Chris Wetherbee – Citi
  • Jordan Alliger – Goldman Sachs
  • Ravi Shanker – Morgan Stanley
  • Allison Poliniak – Wells Fargo
  • Scott Schneeberger – Oppenheimer
  • Brian Ossenbeck – JPMorgan
  • Ben Hartford – Baird
  • Amit Mehrotra – Deutsche
  • Allison Landry – Credit Suisse
  • Ken Hoexter – Bank of America
  • Jack Atkins – Stephens
  • Bascome Majors – Susquehanna

 

  • Consolidated revenue rose 13.4% from last year to $20.5 billion. Operating profit grew 7.4% from last year to $2.3 billion, led by outstanding results in the international segment, while U.S. operating margin declined by 170 basis points from last year, largely due to certain expense items.
  • Today, UPS is focused on increasing network efficiency, as well as more permanent actions to improve revenue quality, including pricing that reflects the value UPS creates. For example, on May 31, UPS introduced new surcharges of certain volumes. UPS is developing specific actions and metrics against strategic efforts.
  • UPS healthcare expertise and global portfolio of services enabled to meet the urgent need for PPE and COVID-19 testing supplies, and provide support for vaccine and treatment studies. All of which, contributed to results in each of UPS' three segments. For the quarter, consolidated revenue increased 13.4% to $20.5 billion. Net income rose 8.8% to $1.9 billion and operating profit totaled $2.3 billion or 7.4% higher than last year. The operating margin for the company was 11.4% below last year by 60 basis points, diluted earnings per share was $2.13, up 8.7% from the same period last year.
  • In U.S. Domestic, market demand for residential delivery surged in the quarter, driving total average daily volume up to 21.1 million packages, an increase of 22.8%. SurePost increased by 96.6% and represented 53% of total U.S. Domestic volume growth. Volume approached peak like levels with May and June, significantly above April. 

 

UPS Investor Presentation

UPS Earnings Call July 30, 2020: https://seekingalpha.com/article/4362472-united-parcel-services-ups-ceo-carol-tom-on-q2-2020-results-earnings-call-transcript?part=single

 

UPS Annual Report Highlights

UPS 2019 Annual Report filed for Fiscal Year-End December 31, 2019

NAME TITLE
David Abney UPS Chairman and Former UPS Chief Executive Officer
Carol B. Tomé UPS Chief Executive Officer
Rodney C. Adkins Former Senior Vice President of Corporate Strategy, IBM
Michael J. Burns Former Chairman, Chief Executive Officer and President, Dana Corporation
Angela Hwang Group President, Pfizer Biopharmaceuticals Group
William R. Johnson Former Chairman, President and Chief Executive Officer, H.J. Heinz Company
Ann M. Livermore Former Executive Vice President, Hewlett Packard Company
Rudy H.P. Markham Former Financial Director, Unilever PLC and Unilever NV
Franck J. Moison Former Vice Chairman, Colgate-Palmolive Company
Clark T. "Sandy" Randt Jr. Former U.S. Ambassador to the People's Republic of China, President of Randt & Co. LLC
Christiana Smith Shi Former President of Direct-to-Consumer, Nike, Inc
John T. Stankey Chief Executive Officer, AT&T Inc.
Kevin M. Warsh Former Member of the Board of Governors of the Federal Reserve System, Distinguished Visiting Fellow, Hoover Institution Stanford University

 

UPS Org Chart

United Parcel Service, Inc. (“UPS”) was founded in 1907 as a private messenger and delivery service in Seattle, Washington. Today, UPS is the world’s largest package delivery company, a leader in the U.S. less-than-truckload industry and a premier provider of global supply chain management solutions. The global market for these services includes transportation, distribution, contract logistics, ground freight, ocean freight, air freight, customs brokerage, insurance and financing.

UPS operates one of the largest airlines in the world, as well as the world’s largest fleet of alternative-powered vehicles. UPS delivers packages each business day for 1.6 million shipping customers to 9.9 million delivery customers in over 220 countries and territories. In 2019, UPS delivered an average of 21.9 million pieces per day, or a total of 5.5 billion packages. Total revenue in 2019 was $74.094 billion.

UPS has three reporting segments: U.S. Domestic Package and International Package, which together refer to as global small package operations, and Supply Chain & Freight.
 

 

UPS Revenue

 

UPS Financial Highlights

Fiscal Year  
Fiscal Year Ends December 31, 2019
Most Recent Quarter  June 30, 2020
   
Profitability  
Profit Margin 5.66%
Operating Margin  7.28%
   
Management Effectiveness  
Return on Assets  6.13%
Return on Equity  99.49%
   
Income Statement  
Revenue  $77.38 Billion
Revenue Per Share  89.61
Quarterly Revenue Growth  13.40%
Gross Profit  13.64B
EBITDA 8.16B
Net Income Avi to Common  4.38B
Diluted EPS  5.03
Quarterly Earnings Growth  4.90%
   
Balance Sheet  
Total Cash  9.25B
Total Cash Per Share  10.71
Total Debt  29.97B
Total Debt/Equity  684.8
Current Ratio  1.24
Book Value Per Share  5.06
   
Cash Flow Statement  
Operating Cash Flow  10.38B
Levered Free Cash Flow  1.66B

  

UPS Competitive Strengths

Efficient Multimodal Network. UPS believes that integrated global air and ground network is the most extensive in the industry. UPS provides all types of package services (air, ground, domestic, international, commercial and residential) through a single pickup and delivery network. We also have extensive air freight, ocean freight, ground freight and logistics networks that provide additional capabilities in the global transportation and logistics market. UPS' sophisticated engineering systems allow us to optimize our network efficiency and asset utilization.


Global Presence. UPS servers more than 220 countries and territories. UPS has a significant presence in all of the world’s major economies.

Cutting-Edge Technology. Technology powers virtually every service UPS offers and every operation UPS performs. UPS is a global leader in developing technology that helps customers enhance their shipping and logistics business processes to lower costs, improve service and increase efficiency. UPS offers a variety of online service options that enable customers to integrate UPS functionality into their own businesses to send, manage and track their shipments conveniently, and also to provide their customers with better information services. UPS provides the infrastructure for an internet presence that extends to tens of thousands of customers who have integrated UPS tools directly into their own websites.

Broad Portfolio of Services. UPS' portfolio of services helps customers choose the delivery option that is most appropriate for their requirements. Increasingly, customers benefit from business solutions that integrate many UPS services beyond package delivery. For example, UPS supply chain services – such as freight forwarding, truckload brokerage, customs brokerage, order fulfillment and returns management – help improve the efficiency of the entire supply chain management process.

Customer Relationships. UPS focuses on building and maintaining long-term customer relationships. UPS serves 1.6 million shipping customers daily and deliver packages to more than 9.9 million delivery customers daily. Cross selling small package and supply chain services across UPS' customer base is an important growth mechanism for UPS.

Brand Equity. UPS has built a leading and trusted brand that stands for quality, reliability and service innovation. The distinctive appearance of UPS vehicles and the professional courtesy of UPS drivers are major contributors to brand equity.

Distinctive Culture. UPS believes that the dedication of employees comes in large part from UPS' distinctive “employee-owner” concept. UPS' employee stock ownership tradition dates back to 1927, when founders, who believed that employee stock ownership was a vital foundation for a successful business, created UPS' first stock ownership program.

Financial Strength. UPS' financial strength allows the business to achieve global scale; to invest in employee development, technology, transportation equipment and facilities; to pursue strategic opportunities that facilitate growth; to service obligations and to return value to shareowners.

 

    UPS Supply and Distribution 

    With the strategic focus of serving the unique, priority-handling needs of healthcare and life sciences customers, U.S. healthcare warehouse and distribution space will total approximately 5 million square feet in 2020. Key features in the new facilities include climate controls and validated coolers and freezers for customer products requiring strict temperature-controlled environments.

    In 2019, UPS expanded e-commerce solutions for SMBs worldwide, offering streamlined fulfillment and shipping services to consumers in the U.S. and Canada. UPS launched the UPS eFulfillment program to help sellers quickly and easily manage multiple marketplaces. The program, which is compatible with over 20 e-commerce marketplaces, includes a technology platform and physical fulfillment services, such as storage, order processing, packaging and shipping.

    See the Full UPS Annual Report

    UPS Organizational Charts

    UPS Org Chart

    UPS Board of Directors Chart

     

    UPS Org Chart Leadership

    UPS SALES TRIGGER EVENTS

    UPS Board Appoints Carol Tomé As CEO; David Abney To Be Executive Chairman
    March 2020
    Atlanta, GA
    The UPS (NYSE:UPS) Board of Directors today announced it has named Carol Tomé as UPS Chief Executive Officer, effective June 1. David Abney, the current Chairman and Chief Executive Officer, will remain in his role until June 1 when he will become Executive Chairman of the Board. He will retire from the UPS Board on September 30. In order to ensure a smooth transition and successful peak season, Abney will remain as a special consultant through the end of 2020 and then retire after 46 years of UPS service. On September 30, William Johnson, UPS Lead Independent Director, will assume the role of Non-Executive Chairman.

     

    Wes Wheeler Appointed to Lead UPS Healthcare and Life Sciences Unit
    Dec 2019
    UPS today announced Wes Wheeler, currently CEO of Marken, a wholly-owned subsidiary of UPS, is appointed President of UPS's global Healthcare and Life Sciences (HCLS) unit. The move is effective immediately.  UPS announced in October plans to align all of its healthcare and life sciences operations and commercial groups within a single UPS HCLS unit.
    Wheeler will expand UPS's HCLS services with key investments, partnerships and technology that address unique customer needs in the healthcare and life science markets. UPS also plans to harmonize quality standards and operating procedures as part of the alignment of all its HCLS operations. Recently, UPS introduced new technology-enabled solutions for critical healthcare packages that leverage the company's data networks to offer improved package tracking, special handling protocols and enhanced contingency management to ensure the highest levels of speed, visibility and reliability.

    UPS Tech Chief Wins Forbes CIO Innovation Award By Developing a Global Smart Logistics Network
    December 2019
    Juan Perez, Chief Information and Engineering Officer of UPS oversees three aspects of engineering: industrial engineering, plant engineering, and automotive engineering along with the more traditional CIO responsibilities. He is a long-time leader of the company, and has developed a number of revenue generating ideas.

    DOWNLOAD THE UPS DEEP DIVE SALES INTELLIGENCE REPORT TO SEE DOZENS MORE ACTIONABLE SALES TRIGGER EVENTS. THE UPS REPORT WAS MOST RECENTLY UPDATED ON AUGUST 17, 2020.

    More on UPS...


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