Categories: Earnings

UPS Says Residential And Medical Deliveries Boost Q2 Results

One of the bright spots in the COVID-19 economy has been delivery services, and United Parcel Service Inc. (UPS) is no exception.

The Atlanta-based transportation giant reported that its second-quarter consolidated revenue increased to $20.5 billion, up 13.4 percent from the same quarter last year.

In early morning trading, UPS shares were $136.09, a 10 percent rise from the close on Wednesday (July 29) of $123.68.

Adjusted net income was $1.9 billion, a nearly 9 percent increase above Q2 in 2019. At the same time, adjusted operating profit was $2.3 billion, up 7.4 percent compared to last year’s Q2. Adjusted diluted earnings were $2.13 per share, an 8.7 percent increase from the same period last year.

GAAP results included a pre-tax charge of $112 million, equivalent to $0.10 per share. In the prior-year period, GAAP results included a pre-tax charge for transformation costs of $21 million, equivalent to $0.02 per share.

“Our results were better than we expected, driven in part by the changes in demand that emerged from the pandemic, including a surge in residential volume, COVID-19 related healthcare shipments and strong outbound demand from Asia,” said Carol Tomé, UPS CEO, in a statement. “UPSers are keeping the world moving during this time of need, and I want to thank our team for their hard work and outstanding efforts to serve our customers, our communities and each other.”

Despite the strong quarter, UPS said it is unable to estimate its operating performance in future quarters.

“Moving forward, we are focusing on efficiency and revenue quality to improve U.S. operating margins longer term,” said Brian Newman, UPS chief financial officer, in a statement. “Our liquidity and cash position remains strong, allowing us to invest in enabling capabilities through this time of unprecedented business disruption.”

PYMNTS has reported that the cost to ship packages by UPS and FedEx increased as a result of the pandemic. In June, FedEx added a 30-cent surcharge to packages delivered to homes via Express and Ground for large retailers and manufacturers who ship 40,000 or more packages per week. There will also be an extra $30 charge for all oversized packages. Additionally, 40 cents will be added to deliveries that use SmartPost, the service that uses the U.S. Postal Service to deliver packages to homes.

The move by FedEx followed UPS’ announced surcharge in May of an extra 30 cents to packages shipped via UPS Ground and SurePost. Another surcharge of $31.45 was added for every large package shipped.

Get our hottest stories delivered to your inbox.

Sign up for the Newsletter to get updates on top stories and viral hits.



The September 2020 Leveraging The Digital Banking Shift Study, PYMNTS examines consumers’ growing use of online and mobile tools to open and manage accounts as well as the factors that are paramount in building and maintaining trust in the current economic environment. The report is based on a survey of nearly 2,200 account-holding U.S. consumers.

Recent Posts

The Outside-The-Box Ways The World Is Beating Boredom

The late William F. Buckley Jr. famously once said that “boredom is the deadliest poison.”…

1 day ago

Hims Inc. May Go Public Through Blank-Check Company

Remote healthcare firm Hims Inc. is getting close to an arrangement to go public via…

2 days ago

Decision On TikTok Ban Coming Sunday

The high-stakes court decision on whether to allow a ban of video-sharing app TikTok set to…

2 days ago

NYC Could Close Nonessential Businesses In Some Areas If Pandemic Outbreak Grows

New York City might shutter nonessential businesses in multiple districts and prohibit groups of over…

2 days ago

PayPal Provides $5M In Grants To Support Minority Businesses

PayPal Holdings Inc. provided $5 million in grants to support Black-owned businesses in the U.S.…

2 days ago

Fed Sees Possible Path To ‘Direct Issuance’ Of Digital Dollars

Digital dollars could make the leap from concept to reality, but there might be a…

2 days ago