Q2 2024 United Parcel Service Inc Earnings Call Transcript
Key Points
- United Parcel Service Inc (UPS) returned to volume growth in the U.S. for the first time in nine quarters.
- The company is on track with its Fit to Serve initiative, aiming to deliver roughly $1 billion in savings by the end of the year.
- UPS announced plans to acquire Estafeta, a leading domestic small package provider in Mexico, enhancing its logistics capabilities.
- The Digital Access Program (DAP) generated $1.5 billion in revenue in the first six months of the year, with a target of over $3 billion for 2024.
- UPS expanded its weekend service offering to six additional markets in the U.S., providing deliveries one day earlier than competitors.
- Consolidated revenue for the second quarter was $21.8 billion, a decline of 1.1% compared to last year.
- Consolidated operating profit was down 29.3%, and the operating margin was 9.5%.
- International volume growth was down 2.9% year-over-year, with a notable shift toward value products.
- The company experienced a shift in product mix, with customers favoring more economical products, impacting revenue per piece growth.
- Union wage rates increased 11.7%, contributing to a 3.2% increase in total expenses for the second quarter.
Good morning. My name is Stephen, and I will be your facilitator today. I would like to welcome everyone to the UPS Investor Relations' second-quarter 2024 earnings conference call. (Operator Instructions) It is now my pleasure to turn the floor over to your host, Mr. PJ Guido, Investor Relations Officer. Sir, the floor is yours.
Good morning, and welcome to the UPS second-quarter 2024 earnings call. Joining me today are Carol Tomé, our CEO; Brian Dykes, our new CFO; and a few additional members of our executive leadership team.
Before we begin, I want to remind you that some of the comments we'll make today are forward-looking statements within the federal securities laws and address our expectations for the future performance or operating results of our company. These statements are subject to risks and uncertainties, which are described in our 2023 Form 10-K and other reports we filed with or furnished to the Securities and Exchange Commission. These reports, when filed, are available on the
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