Q3 2024 United Parcel Service Inc Earnings Call Transcript
Key Points
- United Parcel Service Inc (UPS) achieved a 5.6% increase in consolidated revenue, reaching $22.2 billion in the third quarter of 2024.
- The company reported a 22.8% increase in consolidated operating profit, amounting to $2 billion, with an operating margin of 8.9%.
- UPS saw its highest year-over-year average daily volume growth rate in the US since the first quarter of 2021, with a 6.5% increase.
- The international segment experienced revenue growth across all regions, with a 3.4% increase in revenue and a 17.3% rise in operating profit.
- UPS's focus on healthcare logistics is paying off, with $2.5 billion in consolidated healthcare revenue contributing to growth across all segments.
- The macroeconomic environment was worse than expected, with a slowdown in US online sales and lower manufacturing activity impacting volume.
- Despite improvements, the international average daily volume growth was flat, indicating challenges in maintaining momentum.
- The supply chain solutions segment saw a decline in operating profit due to the transition costs associated with onboarding USPS Air Cargo business.
- Revenue per piece in the US domestic segment declined by 2.2% year-over-year, although there was a slight sequential improvement.
- The company faced challenges with the unexpected surge of short zone, lightweight e-commerce packages, impacting pricing and operating plans.
Good morning. My name is Greg Alexander, and I will be your facilitator today. I would like to welcome everyone to the UPS third-quarter 2024 earnings conference call. (Operator Instructions). And after the speakers' remarks, there will be a question-and-answer period.
(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 third-quarter 2024 earnings call. Joining me today are Carol Tome, our CEO; Brian Dykes, our CFO; and a few additional members of our executive leadership team. Before we begin, I 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 file with or furnished to the Securities and Exchange
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
