UPS Releases 2Q 2019 Earnings (24/07/2019)
For the total company in 2Q 2019:
- Consolidated revenue increased 3.4% to $18 billion, driven by gains in average daily volume in the U.S. and higher-quality, currency-neutral revenue in the International segment.
- Total operating profit grew nearly 21%, and 6.3% on an adjusted basis, with growth in all segments.
- Total operating margin expanded 170 basis points; adjusted operating margin expanded 30 basis points.
- Capital expenditures for the year are approximately $2.9 billion to support network enhancements.
- Year-to-date dividends per share increased 5.5% and the company repurchased 4.8 million shares for approximately $500 million.
- The company’s full-year adjusted diluted EPS will be in the range of $7.45 to $7.75.
- Adjusted free cash flow for the year is projected to be between $3.5 and $4 billion with potential additional upside from the working capital initiatives.
- The effective tax rate for the full-year 2019 is estimated to be between 22% and 24%.
- Third-quarter adjusted EPS is expected to benefit from numerous items including one additional operating day and year-over-year International benefits from 2018 commodities headwinds that should not repeat.
- Transformation charges and pension MTM are not included in the adjusted guidance.