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International revenue was stronger than expected and operating margins improved in all areas of our business.
UPS has announced that adjusted diluted earnings per share for the first quarter of 2010 will be $0.71 compared to an adjusted $0.52 in the prior-year quarter, an increase of 37 percent. These strong results were powered by a significant acceleration in our international package and supply chain businesses and improved operating margins across all three segments—international, supply chain and freight, and U.S. small package.
Volume and revenue growth were strongest internationally. During fourth quarter 2009, we anticipated that in 2010, international export volume growth would outperform the market as we continue to grow and gain market share.
Also in line with expectations, growth in the U.S. has been much slower, with an increase in daily volume of less than one percent. Despite minimal volume growth in the U.S., we generated improvements in operating leverage due to the ongoing efforts of UPS people to control costs and realize efficiencies. Our margins, however, remain well below historical norms. These positive trends, coupled with the changes we’ve made to transform our U.S. small package business, position us to take advantage of growth opportunities as gradual economic recovery continues in the U.S.
In 2008, UPS generated revenue of $51.5 billion, with first quarter revenues totaling $12.7 billion. In 2009, our annual revenue fell to $45.3 billion, with first quarter dropping to $10.9 billion. So while our 2010 first quarter revenue is up 7 percent, we’re still below where we were in the first quarter of 2008.
After one of the most challenging years in UPS’s history, the first quarter 2010 results are encouraging. While there is still much work to do to grow our business, we have the momentum necessary to emerge as a strong global competitor as the economy improves. The efforts of UPS people, our company’s ability to adapt, and our commitment to service continue to position UPS for a successful future.
As a result of stronger than expected earnings for the first quarter and an improved outlook for the remainder of the year, UPS has increased expectations for full-year adjusted earnings to a range of $3.05 to $3.30 per diluted share. This is an increase over 2009, but is still below our 2008 adjusted, diluted earnings per share (EPS) of $3.50 and well below our peak adjusted, diluted EPS of $4.11 in 2007.
Additional details are available in the press release available in the UPS Pressroom and will be discussed during the first quarter earnings call on April 27.
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Posts should be professional and respectful. Refrain from using names or implying a name based on an individual job title. UPS reserves the right, in its sole discretion, to disallow or remove any messages, comments or posts for any reason at any time. Comments are moderated and may not appear immediately after submission. Comments generally will not be posted if they include profanity or are unlawful, threatening, libelous or obscene or otherwise violate the Web Site Terms of Use.
Published : Apr 14, 2010 04:26 PM
Last Updated : Apr 14, 2010 04:26 PM Content Options
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International revenue was stronger than expected and operating margins improved in all areas of our business.
UPS has announced that adjusted diluted earnings per share for the first quarter of 2010 will be $0.71 compared to an adjusted $0.52 in the prior-year quarter, an increase of 37 percent. These strong results were powered by a significant acceleration in our international package and supply chain businesses and improved operating margins across all three segments—international, supply chain and freight, and U.S. small package.
Volume and revenue growth were strongest internationally. During fourth quarter 2009, we anticipated that in 2010, international export volume growth would outperform the market as we continue to grow and gain market share.
Also in line with expectations, growth in the U.S. has been much slower, with an increase in daily volume of less than one percent. Despite minimal volume growth in the U.S., we generated improvements in operating leverage due to the ongoing efforts of UPS people to control costs and realize efficiencies. Our margins, however, remain well below historical norms. These positive trends, coupled with the changes we’ve made to transform our U.S. small package business, position us to take advantage of growth opportunities as gradual economic recovery continues in the U.S.
In 2008, UPS generated revenue of $51.5 billion, with first quarter revenues totaling $12.7 billion. In 2009, our annual revenue fell to $45.3 billion, with first quarter dropping to $10.9 billion. So while our 2010 first quarter revenue is up 7 percent, we’re still below where we were in the first quarter of 2008.
After one of the most challenging years in UPS’s history, the first quarter 2010 results are encouraging. While there is still much work to do to grow our business, we have the momentum necessary to emerge as a strong global competitor as the economy improves. The efforts of UPS people, our company’s ability to adapt, and our commitment to service continue to position UPS for a successful future.
As a result of stronger than expected earnings for the first quarter and an improved outlook for the remainder of the year, UPS has increased expectations for full-year adjusted earnings to a range of $3.05 to $3.30 per diluted share. This is an increase over 2009, but is still below our 2008 adjusted, diluted earnings per share (EPS) of $3.50 and well below our peak adjusted, diluted EPS of $4.11 in 2007.
Additional details are available in the press release available in the UPS Pressroom and will be discussed during the first quarter earnings call on April 27.
--------------------------------------------------------------------------------
Add your comment on this article
Posts should be professional and respectful. Refrain from using names or implying a name based on an individual job title. UPS reserves the right, in its sole discretion, to disallow or remove any messages, comments or posts for any reason at any time. Comments are moderated and may not appear immediately after submission. Comments generally will not be posted if they include profanity or are unlawful, threatening, libelous or obscene or otherwise violate the Web Site Terms of Use.
Published : Apr 14, 2010 04:26 PM
Last Updated : Apr 14, 2010 04:26 PM Content Options
Printer Friendly View
Submit Feedback
Related Files
Related Links
UPS Pressroom
UPS Service Gallery
U.S. Small Package Transformation
Web Directory Topics
Related Topics
Copyright © 2010, United Parcel Service of America, Inc. All Rights Reserved.