UPS (NYSE: UPS) announced that its consolidated revenue for the first quarter of 2021 reached $ 2020 billion, up 27% from the first quarter of 22,9. Consolidated average daily volume increased by 14,3% compared to the same period last year. Consolidated operating profit increased 2020% from the first quarter of 158 to $ 2,8 billion, and increased by 164% after regulation. Diluted earnings per share this quarter was $ 2020, up 393% compared to the same period of 5,47, and increased by 141% after regulation.
In the first quarter of 2021, GAAP results include $ 2,5 billion in net profit, or $ 140 per diluted share, consisting of $ 2,4 billion after-tax market-level retirement benefits and $ 2,70 million after-tax conversion and other charges. Market-level retirement benefit was provided substantially through the adoption of the 2021 American Recovery Plan Act. The American Rescue Plan Act, passed on March 11, 2021, protects some retirement plans involving a large number of employers from the threat of insolvency by 2051; thus eliminating the Company's liability for potential regulatory rights in relation to the Middle States Pension Fund. The adoption of the American Rescue Plan Act required the Company to reassess the UPS IBT Retirement plan based on current discount rates rising since the previous measurement date. The overall result was a $ 6,4 billion reduction in pension obligation.
“I'd like to thank all UPS employees for delivering things that matter to people, including COVID-19 vaccines,” said UPS CEO Carol Tomé. This quarter, we continued to implement our strategy in a better framework, not a bigger one. Thus, we were able to achieve the best opportunities in the market and achieved record financial results, ”he said.
USA Domestic Parcel Shipping
| 2021 1st Quarter
|
Organized
2021 1st Quarter |
2020 1st Quarter |
Organized 2020 1st Quarter |
|
| Revenue | $ 14.010 million | $ 11.456 million | ||
| Operating profit | $ 1.359 million | $ 1.463 million | $ 364 million | $ 401 million |
- Revenue increased by 22,3%, based on growth from small and medium-sized businesses.
- Piece revenue increased by 10,2% due to road products.
- Operating profit 9,7%; adjusted operating profit was 10,4%.
International Package Shipping
|
2021 1st Quarter |
Organized
2021 1st Quarter |
2020 1st Quarter |
Organized 2020 1st Quarter |
|
| Revenue | $ 4.607 million | $ 3.383 million | ||
| Operating profit | $ 1.085 million | $ 1.091 million | $ 551 million | $ 558 million |
- Average daily volume grew by 23,1%, with exports growing in all regions.
- Revenue increased by 36,2%, mainly in Asia and Europe.
- Operating profit 23,6%; adjusted operating profit was 23,7%.
Supply Chain and Freight Segment
|
2021 1st Quarter |
Organized
2021 1st Quarter |
2020 1st Quarter |
Organized 2020 1st Quarter |
|
| Revenue | $ 4.291 million | $ 3.196 million | ||
| Operating profit | $ 321 million | $ 395 million | $ 157 million | $ 158 million |
- Revenue increased by 34,3%, driven by strong demand from almost all businesses.
- Operating profit 7,5%; adjusted operating profit was 9,2%.
General view
The company does not provide 2021 revenue or earnings per share guideline due to the ongoing economic uncertainty. However, it reaffirms its full-year capital allocation plans. UPS plans to hold the 2021 Investor and Analyst Day on June 9. More detailed financial information will be shared on this date.
2021 Reconfirms its Full-Year Capital Allocation Plans
- The sale of UPS Freight is expected to be completed in the second quarter.
- Capital expenditures are planned to amount to $ 4,0 billion.
- Long-term debt repayments will amount to $ 2021 billion, including $ 1,5 billion paid in the first quarter of 2,5.
- The tax rate actually paid for the remainder of the year is expected to be around 23,5%.
- The company does not plan to repurchase shares.
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