Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - First Quarter
(unaudited)
|
| | | | | | | | | | | |
| | Three Months Ended | | |
| | March 31 | |
| | 2019 | 2018 | Change | % Change |
| (amounts in millions, except per share data) | | | | |
| Statement of Income Data: | | | | |
| Revenue: | | | | |
| U.S. Domestic Package | $ | 10,480 |
| $ | 10,227 |
| $ | 253 |
| 2.5 | % |
| International Package | 3,459 |
| 3,533 |
| (74 | ) | (2.1 | )% |
| Supply Chain & Freight | 3,221 |
| 3,353 |
| (132 | ) | (3.9 | )% |
| Total revenue | 17,160 |
| 17,113 |
| 47 |
| 0.3 | % |
| | | | | |
| Operating expenses: | | | | |
| Compensation and benefits | 9,317 |
| 9,045 |
| 272 |
| 3.0 | % |
| Other | 6,449 |
| 6,548 |
| (99 | ) | (1.5 | )% |
| Total operating expenses | 15,766 |
| 15,593 |
| 173 |
| 1.1 | % |
| | | | | |
| Operating profit: | | | | |
| U.S. Domestic Package | 666 |
| 756 |
| (90 | ) | (11.9 | )% |
| International Package | 528 |
| 594 |
| (66 | ) | (11.1 | )% |
| Supply Chain & Freight | 200 |
| 170 |
| 30 |
| 17.6 | % |
| Total operating profit | 1,394 |
| 1,520 |
| (126 | ) | (8.3 | )% |
| | | | | |
| Other income (expense): | | | | |
| Other pension income (expense) | 191 |
| 285 |
| (94 | ) | (33.0 | )% |
| Investment income and other | 24 |
| 9 |
| 15 |
| 166.7 | % |
| Interest expense | (169 | ) | (153 | ) | (16 | ) | 10.5 | % |
| Total other income (expense) | 46 |
| 141 |
| (95 | ) | (67.4 | )% |
| | | | | |
| Income before income taxes | 1,440 |
| 1,661 |
| (221 | ) | (13.3 | )% |
| | | | | |
| Income tax expense (benefit) | 329 |
| 316 |
| 13 |
| 4.1 | % |
| | | | | |
| Net income | $ | 1,111 |
| $ | 1,345 |
| $ | (234 | ) | (17.4 | )% |
| | | | | |
| Net income as a percentage of revenue | 6.5 | % | 7.9 | % | | |
| | | | | |
| Per share amounts: | | | | |
| Basic earnings per share | $ | 1.28 |
| $ | 1.55 |
| $ | (0.27 | ) | (17.4 | )% |
| Diluted earnings per share | $ | 1.28 |
| $ | 1.55 |
| $ | (0.27 | ) | (17.4 | )% |
| | | | | |
| Weighted-average shares outstanding: | | | | |
| Basic | 866 |
| 866 |
| — |
| 0.0 | % |
| Diluted | 869 |
| 870 |
| (1 | ) | (0.1 | )% |
| | | | | |
| As adjusted income data: | | | | |
| Operating profit: | | | | |
| U.S. Domestic Package (1) | $ | 694 |
| $ | 756 |
| $ | (62 | ) | (8.2 | )% |
| International Package (1) | $ | 612 |
| $ | 594 |
| $ | 18 |
| 3.0 | % |
| Supply Chain & Freight (1) | $ | 211 |
| $ | 170 |
| $ | 41 |
| 24.1 | % |
| Total operating profit (1) | $ | 1,517 |
| $ | 1,520 |
| $ | (3 | ) | (0.2 | )% |
| | | | | |
| Income before income taxes (1) | $ | 1,563 |
| $ | 1,661 |
| $ | (98 | ) | (5.9 | )% |
| Net income (2) | $ | 1,204 |
| $ | 1,345 |
| $ | (141 | ) | (10.5 | )% |
| | | | | |
| Basic earnings per share (2) | $ | 1.39 |
| $ | 1.55 |
| $ | (0.16 | ) | (10.3 | )% |
| Diluted earnings per share (2) | $ | 1.39 |
| $ | 1.55 |
| $ | (0.16 | ) | (10.3 | )% |
(1) 2019 operating profit and consolidated income before income taxes exclude the impact of $123 million of transformation strategy costs, that reflect costs and other employee benefits of $106 million and other costs of $17 million. These costs are allocated between the U.S. Domestic Package segment ($28 million), International Package segment ($84 million) and Supply Chain & Freight segment ($11 million).
(2) 2019 net income and earnings per share amounts exclude the after-tax impact of the adjustments described in (1), which decreased net income by $93 million.
Certain prior year amounts have been reclassified to conform to the current year presentation.
United Parcel Service, Inc.
Selected Operating Data - First Quarter
(unaudited)
|
| | | | | | | | | | | |
| | Three Months Ended | | |
| | March 31 | |
| | 2019 | 2018 | Change | % Change |
| | | | | |
| Revenue (in millions): | | | | |
| U.S. Domestic Package: | | | | |
| Next Day Air | $ | 1,841 |
| $ | 1,784 |
| $ | 57 |
| 3.2 | % |
| Deferred | 1,089 |
| 1,069 |
| 20 |
| 1.9 | % |
| Ground | 7,550 |
| 7,374 |
| 176 |
| 2.4 | % |
| Total U.S. Domestic Package | 10,480 |
| 10,227 |
| 253 |
| 2.5 | % |
| International Package: | | | | |
| Domestic | 690 |
| 716 |
| (26 | ) | (3.6 | )% |
| Export | 2,631 |
| 2,672 |
| (41 | ) | (1.5 | )% |
| Cargo and Other | 138 |
| 145 |
| (7 | ) | (4.8 | )% |
| Total International Package | 3,459 |
| 3,533 |
| (74 | ) | (2.1 | )% |
| Supply Chain & Freight: | | | | |
| Forwarding | 1,416 |
| 1,605 |
| (189 | ) | (11.8 | )% |
| Logistics | 832 |
| 782 |
| 50 |
| 6.4 | % |
| Freight | 773 |
| 777 |
| (4 | ) | (0.5 | )% |
| Other | 200 |
| 189 |
| 11 |
| 5.8 | % |
| Total Supply Chain & Freight | 3,221 |
| 3,353 |
| (132 | ) | (3.9 | )% |
| Consolidated | $ | 17,160 |
| $ | 17,113 |
| $ | 47 |
| 0.3 | % |
| | | | | |
| Consolidated volume (in millions) | 1,246 |
| 1,241 |
| 5 |
| 0.4 | % |
| | | | | |
| Operating weekdays | 63 |
| 64 |
| (1 | ) | (1.6 | )% |
| | | | | |
| Average Daily Package Volume (in thousands): | | | | |
| U.S. Domestic Package: | | | | |
| Next Day Air | 1,563 |
| 1,437 |
| 126 |
| 8.8 | % |
| Deferred | 1,384 |
| 1,297 |
| 87 |
| 6.7 | % |
| Ground | 13,684 |
| 13,545 |
| 139 |
| 1.0 | % |
| Total U.S. Domestic Package | 16,631 |
| 16,279 |
| 352 |
| 2.2 | % |
| International Package: | | | | |
| Domestic | 1,688 |
| 1,670 |
| 18 |
| 1.1 | % |
| Export | 1,451 |
| 1,446 |
| 5 |
| 0.3 | % |
| Total International Package | 3,139 |
| 3,116 |
| 23 |
| 0.7 | % |
| Consolidated | 19,770 |
| 19,395 |
| 375 |
| 1.9 | % |
| | | | | |
| Average Revenue Per Piece: | | | | |
| U.S. Domestic Package: | | | | |
| Next Day Air | $ | 18.70 |
| $ | 19.40 |
| $ | (0.70 | ) | (3.6 | )% |
| Deferred | 12.49 |
| 12.88 |
| (0.39 | ) | (3.0 | )% |
| Ground | 8.76 |
| 8.51 |
| 0.25 |
| 2.9 | % |
| Total U.S. Domestic Package | 10.00 |
| 9.82 |
| 0.18 |
| 1.8 | % |
| International Package: | | | | |
| Domestic | 6.49 |
| 6.70 |
| (0.21 | ) | (3.1 | )% |
| Export | 28.78 |
| 28.87 |
| (0.09 | ) | (0.3 | )% |
| Total International Package | 16.79 |
| 16.99 |
| (0.20 | ) | (1.2 | )% |
| Consolidated | $ | 11.08 |
| $ | 10.97 |
| $ | 0.11 |
| 1.0 | % |
Certain prior year amounts have been reclassified to conform to the current year presentation.
United Parcel Service, Inc.
Supplemental Analysis of Currency and UPS Freight
|
| | | | | | | | | | | | | | | | | | | | | |
| Currency Neutral Revenue Per Piece |
| (unaudited) |
| | | | | | | | | | | | |
| | Three Months Ended | | | | | | Currency | | |
| | March 31 | | | | Neutral |
| | 2019 | | 2018 | | % Change | | Currency | | 2019* | | % Change |
| Average Revenue Per Piece: | | | | | | | | | | | |
| International Package: | | | | | | | | | | | |
| Domestic | $ | 6.49 |
| | $ | 6.70 |
| | (3.1 | )% | | $ | 0.47 |
| | $ | 6.96 |
| | 3.9 | % |
| Export | 28.78 |
| | 28.87 |
| | (0.3 | )% | | 0.73 |
| | 29.51 |
| | 2.2 | % |
| Total International Package | $ | 16.79 |
| | $ | 16.99 |
| | (1.2 | )% | | $ | 0.59 |
| | $ | 17.38 |
| | 2.3 | % |
| | | | | | | | | | | | |
| Consolidated | $ | 11.08 |
| | $ | 10.97 |
| | 1.0 | % | | $ | 0.09 |
| | $ | 11.17 |
| | 1.8 | % |
| *Amounts adjusted for period over period foreign currency exchange rate and hedging differences | | | | |
| | | | | | | |
| Currency Neutral Revenue |
| (unaudited) |
| | | | | | | | | | | | |
| | Three Months Ended | | | | | | Currency | | |
| | March 31 | | | | Neutral |
| | 2019 | | 2018 | | % Change | | Currency | | 2019* | | % Change |
| Revenue (in millions): | | | | | | | | | | | |
| U.S. Domestic Package | $ | 10,480 |
| | $ | 10,227 |
| | 2.5 | % | | $ | — |
| | $ | 10,480 |
| | 2.5 | % |
| International Package | 3,459 |
| | 3,533 |
| | (2.1 | )% | | 117 |
| | 3,576 |
| | 1.2 | % |
| Supply Chain & Freight | 3,221 |
| | 3,353 |
| | (3.9 | )% | | 19 |
| | 3,240 |
| | (3.4 | )% |
| Total revenue | $ | 17,160 |
| | $ | 17,113 |
| | 0.3 | % | | $ | 136 |
| | $ | 17,296 |
| | 1.1 | % |
| *Amounts adjusted for period over period foreign currency exchange rate and hedging differences | | | | |
| | | | | | | |
| Currency Neutral Operating Profit |
| (unaudited) |
| | Three Months Ended | | | | | | Currency |
| | March 31 | | | | | | Neutral |
| | 2019* | | 2018 | | % Change | | Currency | | 2019** | | % Change |
| As-Adjusted Operating Profit (in millions): | | | | | | | | | | |
| U.S. Domestic Package | $ | 694 |
| | $ | 756 |
| | (8.2 | )% | | $ | — |
| | $ | 694 |
| | (8.2 | )% |
| International Package | 612 |
| | 594 |
| | 3.0 | % | | (4 | ) | | 608 |
| | 2.4 | % |
| Supply Chain & Freight | 211 |
| | 170 |
| | 24.1 | % | | 1 |
| | 212 |
| | 24.7 | % |
| Total operating profit | $ | 1,517 |
| | $ | 1,520 |
| | (0.2 | )% | | $ | (3 | ) | | $ | 1,514 |
| | (0.4 | )% |
| * Amounts adjusted for transformation strategy costs |
| ** Amounts adjusted for transformation strategy costs and period over period foreign currency exchange rate and hedging differences |
UPS Freight Selected Operating Data -First Quarter
(unaudited)
|
| | | | | | | | | | | |
| | Three Months Ended | | |
| | March 31 | | |
| | 2019 | 2018 | Change | % Change |
| LTL revenue (in millions) | $ | 635 |
| $ | 661 |
| $ | (26 | ) | (3.9 | )% |
| LTL revenue per LTL hundredweight | $ | 26.10 |
| $ | 24.76 |
| $ | 1.34 |
| 5.4 | % |
| | | | | |
| LTL shipments (in thousands) | 2,183 |
| 2,468 |
| (285 | ) | (11.5 | )% |
| LTL shipments per day (in thousands) | 34.7 |
| 38.6 |
| (3.9 | ) | (10.1 | )% |
| | | | | |
| LTL gross weight hauled (in millions of pounds) | 2,433 |
| 2,670 |
| (237 | ) | (8.9 | )% |
| LTL weight per shipment (in pounds) | 1,115 |
| 1,082 |
| 33 |
| 3.0 | % |
| | | | | |
| Operating weekdays | 63 |
| 64 |
| (1 | ) | (1.6 | )% |
Certain prior year have been reclassified to conform to the current year presentation.
United Parcel Service, Inc.
Detail of Other Operating Expenses - First Quarter
(unaudited)
|
| | | | | | | | | | | | | | |
| | Three Months Ended | | | | |
| | March 31 | | | | |
| | 2019 | | 2018 | | Change | | % Change |
| (in millions) | | | | | | | |
| Repairs and maintenance | $ | 434 |
| | $ | 434 |
| | $ | — |
| | 0.0 | % |
| Depreciation and amortization | 568 |
| | 596 |
| | (28 | ) | | (4.7 | )% |
| Purchased transportation | 2,966 |
| | 3,145 |
| | (179 | ) | | (5.7 | )% |
| Fuel | 770 |
| | 750 |
| | 20 |
| | 2.7 | % |
| Other occupancy | 371 |
| | 361 |
| | 10 |
| | 2.8 | % |
| Other expenses | 1,340 |
| | 1,262 |
| | 78 |
| | 6.2 | % |
| Total other operating expenses | $ | 6,449 |
| | $ | 6,548 |
| | $ | (99 | ) | | (1.5 | )% |
Earnings Per Share and Share Data - First Quarter
(unaudited)
|
| | | | | | | |
| | Three Months Ended |
| | March 31 |
| | 2019 | | 2018 |
| (amounts in millions, except per share data) | | | |
| Numerator: | | | |
| Net income | $ | 1,111 |
| | $ | 1,345 |
|
| | | | |
| Denominator: | | | |
| Weighted-average shares | 860 |
| | 861 |
|
| Deferred compensation obligations | 1 |
| | 1 |
|
| Vested portion of restricted units | 5 |
| | 4 |
|
| Denominator for basic earnings (loss) per share | 866 |
| | 866 |
|
| | | | |
| Effect of dilutive securities: | | | |
| Restricted units | 3 |
| | 4 |
|
| Stock options | — |
| | — |
|
| Denominator for diluted earnings (loss) per share | 869 |
| | 870 |
|
| | | | |
| Basic earnings per share | $ | 1.28 |
| | $ | 1.55 |
|
| | | | |
| Diluted earnings per share | $ | 1.28 |
| | $ | 1.55 |
|
| | | | |
| | | | |
| Detail of shares outstanding as of March 31, 2019: | | | |
| | | | |
| Class A shares | 163 |
| | |
| Class B shares | 697 |
| | |
| Total shares outstanding | 860 |
| | |
Certain prior year amounts have been reclassified to conform to the current year presentation.
United Parcel Service, Inc.
Consolidated Balance Sheets - March 31, 2019 and December 31, 2018
(unaudited)
|
| | | | | | | |
| | March 31, 2019 | | December 31, 2018 |
| (amounts in millions) | | | |
| | | | |
| ASSETS | | | |
| Current Assets: | | | |
| Cash and marketable securities | $ | 5,111 |
| | $ | 5,035 |
|
| Other current assets | 9,793 |
| | 11,175 |
|
| Total Current Assets | 14,904 |
| | 16,210 |
|
| Property, Plant and Equipment | 55,365 |
| | 54,488 |
|
| Less accumulated depreciation and amortization | 28,118 |
| | 27,912 |
|
| | 27,247 |
| | 26,576 |
|
| Other Assets | 9,910 |
| | 7,230 |
|
| | $ | 52,061 |
| | $ | 50,016 |
|
| | | | |
| | | | |
| LIABILITIES AND SHAREOWNERS' EQUITY | | | |
| Current Liabilities | $ | 13,209 |
| | $ | 14,087 |
|
| Long-Term Debt | 20,377 |
| | 19,931 |
|
| Pension and Postretirement Benefit Obligations | 8,270 |
| | 8,347 |
|
| Deferred Taxes, Credits and Other Liabilities | 6,720 |
| | 4,614 |
|
| Shareowners' Equity | 3,485 |
| | 3,037 |
|
| | $ | 52,061 |
| | $ | 50,016 |
|
Amounts are subject to reclassification.
United Parcel Service, Inc.
Selected Cash Flow Data
(unaudited)
|
| | | | |
| Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash |
| | | Preliminary |
| | | Year-to-Date |
| (amounts in millions) | | March 31 |
| Cash flows from operating activities | | $ | 2,277 |
|
| Cash flows used in investing activities | | (1,416 | ) |
| Cash flows used in financing activities | | (695 | ) |
| | | |
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | | 9 |
|
| Net increase in cash, cash equivalents and restricted cash | | $ | 175 |
|
| | | |
| Reconciliation of Adjusted Capital Expenditures and Free Cash Flow (non-GAAP measures) |
| | | Preliminary |
| | | Year-to-Date |
| (amounts in millions) | | March 31 |
| Cash flows from operating activities | | $ | 2,277 |
|
| Capital expenditures | | (1,514 | ) |
| Principal repayments of capital lease obligations | | (4 | ) |
| Adjusted Capital Expenditures (non-GAAP measure) | | $ | (1,518 | ) |
| Proceed from disposal of PP&E | | 4 |
|
| Net change in finance receivables | | 10 |
|
| Other investing activities | | (16 | ) |
| Adjusted Free cash flow (non-GAAP measure) | | $ | 757 |
|
Amounts are subject to reclassification.
Certain prior year amounts have been reclassified to conform to the current year presentation.
United Parcel Service, Inc.
Aircraft Fleet - as of March 31, 2019
(unaudited)
|
| | | | | | | | |
| Description | Owned and Capital Leases | Leases & Charters from Others | On Order | Under Option |
| Operating: | | | | |
| Boeing 757-200 | 75 |
| — |
| — |
| — |
|
| Boeing 767-200 | — |
| 2 |
| — |
| — |
|
| Boeing 767-300 | 59 |
| — |
| 13 |
| — |
|
| Boeing 767-300BCF | 3 |
| — |
| — |
| — |
|
| Airbus A300-600 | 52 |
| — |
| — |
| — |
|
| Boeing MD-11 | 37 |
| 5 |
| — |
| — |
|
| Boeing 747-400F | 11 |
| — |
| — |
| — |
|
| Boeing 747-400BCF | 2 |
| — |
| — |
| — |
|
| Boeing 747-8F | 10 |
| — |
| 18 |
| — |
|
| Other | — |
| 291 |
| — |
| — |
|
| | | | | |
| Total | 249 |
| 298 |
| 31 |
| — |
|
