Good morning everyone.
saw UPS customer and unprecedented and change volume During rapid fundamentals. in quarter, the
and As uncertain a result, environment. challenging we faced a
that today by business. strength then describing to in cover the sharing results, begin we our of liquidity the by wrap and I’ll trends up our factors the our see contributed
quarter with unfolded. Let start how the me
grows the have was ecommerce with mentioned, faster The over GDP during highly volatility typically environment; GDP the long industry indicators leading but small correlated David strong as recession second, a elevated. than industry package is economic First, Historically, demand a especially negative. turned in package run, with two small variations. and important
coronavirus global pandemic During business in the to our activity. due quarter, the rapidly changed and economic declines
with Asia. begin me Let
on February in local volume February spread coronavirus locations as different March. China basis, the with surfaced down rebounded down growth Declines a and slightly partially to January growing then in and in single in and daily positive activity and pattern day U.S. in the the high Europe it volume January of digits March, average was economic and in then emerged trailed mid XX%. then followed a daily XX% average new
and for The our their virus actually know an March of the was commercial around respond for UPS’ make to experienced spread to network overall X% however, businesses. it decline and quickly, solutions to making enabled customers the packages X.X%. support but in how adjustments flexibility we in difficult decline or customers; quarter, to global our
differently to important the were recognize also businesses throughout that It’s quarter. affected
temporarily Consequently, more operations medium flat, their SMB U.S. small reversal many a volume a exclusively example, alternatives likely with limited growth of halt move For or online. multi-quarter and sized was trend. businesses were positive to
almost shopping sector XX% providers accelerated surge in significant volume volume another large X.X% and growth growth critically testing needed The somewhat the protective also and Healthcare the in triggering grew and general virus it protect domestically ecommerce where Consumer a quarter. items and are that personal XX% supplies, contributions healthcare online, saw equipment, lab of we by unique. led for the across Internationally, customers. volume from with U.S. ecommerce increased UPS public. the with curtail was impact growth, to migrated was multiple sectors
during income mean was all UPS? second, net technology, day this of $XXX this down a in incident revenue driver While casualty we which safety the were is or about quarter generated we three the than the self-insurance coaching; $XXX a by billion of was UPS continued tailwind training million; did the were accruals $XX finally, of million. proactive prevention, quarter, designed implementation XX% analytics in billion impact of finally anticipated what $XX by about items. approximately addressing $X impact for to drag targeted million then with $XXX of enhance than about quarter. after-tax higher So to one coronavirus million, are operating nearly This avoidance more data and driven and and The in additional
recovery be in well take we’ll however, its regardless We and of shape. it we prepared confident, when opportunities us of advantage the are front that the that can for of comes,
Now the segments. few comments me make let about a
and delivered though we X.X% softened moved up toward strong domestic volume growth of revenue the U.S. quarter. with volume as the end daily products, average volume all across
to faced. and however benefits enough well, not significant headwinds these and customer performed hubs mix rapidly automated we offset were changing Our the product
daily volume, to negative, about drove the volumes by which commercial growth. of in spiked a and average average XX% the our of decreased By nearly package of miles a XX% increase an weight increase quarters period approached pound. third end total in of XX% driven high stops. Specifically, in the deliveries a about five overall turned BXC quarter, of consecutive and ending early teens, BXC
$XXX in million, $XXX the The than last was operating insurance of million, affected which Profitability higher million. about was with discount of self $XXX pension profit, rate by below the accruals around million $XXX casualty $XX year. primarily U.S. generated and anticipated of coronavirus, an million impact
mix. in I Business decline on international executed a spread the valleys led had peaks leveraged various network manage March and the advantage X.X%, the costs in percent, flexibility piece the as of volume volume segment, impact well was by pressure Europe. driven our offset We world. below coronavirus slightly came reduced overall to the per in international international the to opportunities from the as stay-at-home growth lower and in and block month commercial previously took We declines of well but restrictions the February, help volume with from pandemic certain X%, growth average nearly by primarily export significant Turning volume We and January and growth. down through mainly mentioned, positive and across by finishing to closures change a half daily hours decline, cost downward to volume currency.
of includes the $XXX in of generated March headwinds, local the coronavirus. was $XX which as a out million operating export added quickly Asia mid-March tech, Asia One impact from including day and, of operating support from up occurred basis. demand the of ecommerce. with recovery. XX% margin the We in pent-up around bright profit International high quarter on capacity began XX.X%, from sectors, spots in variety volume an its around was China a million even healthcare, and to
coronavirus operating Marken and March revenue healthcare the the quarter as Asia was Now the segment we had growth. some China the Logistics recovery primarily of double less quarter segment X%. hold. operating was than review rebounded International outbound profit a in as and up digit chain grew air down and XX%, more for and took Marken, as U.S. by faced mentioned profit strong The led challenges, on than and freight let’s however, progressed. revenue freight earlier; macro supply positives the environment, saw tonnage segment. difficult Despite lanes
On the quarter, a and basis freight within UPS downside, Freight pushing results Coyote lower $XX around year-over-year softened U.S. the during profit on road by million.
quarter. tough headwinds during million were American million. profit was freight, growth. operating the impact to Additionally, comps the from ocean a $XX North around and air was $XXX and of lower drag freight, were brokerage coronavirus year-over-year Total profit Overall
have approach remain a dividends liquidity, disciplined capital high and to we a allocation, and balanced priority. Moving and management to capital
consistent strength. of operations was position more $X.X debt period we’ve obligations date, about billion, for a from satisfies our a quarter our with flow billion first for $X.X the with free three To billion issuance the which starting We’re adjusted and than Cash strengthened over last our $X.X in from debt liquidity of cash XXXX. average years. was March,
improved across year-over-year basis. taking We are strict Working $XX company. approach by on and around controls a the to million capital working a capital cost
to businesses, positions. We actively engaged cash consumers help and small with policymakers corporate on stimulus support packages
expect to cash we of by lower billion by reducing our and in XXXX capex. Finally, $X.X use nearly suspending share buybacks
About are are dollars Our our from capex re-phasing coming targets. of reduction projects a and and the other capex we reduction at that will buildings impact the projects and cost. finding billion half in some vehicle automation facilities comes not lower is purchases, in XX% adjusting
the thank help for to providing Act companies the U.S. want We country. across the Congress CARES to
in to are ability not elected cycle. confident through have this our we program manage We participate as to UPS’ liquidity the in
additional as make in potential expenses. operating reductions business capex or will, and needed, adjustments conditions We continue monitor further to however, including
crisis right conditions extremely the we improve to the manage now ongoing transformation in as current UPS through further position global and as is future. Our important
add of In we new hour fact, automated year, U.S. our of and within sort domestic the in the capacity network, approximately to increasing pieces network. XX,XXX half agility efficiency the first will per
are began stay-at-home of the or having we into recovery we’re as recession. quarter. to stay-at-home or March We and resulting Let’s this At restrictions, duration the The has three determine distinct second the time, able the view stages: phase. pandemic, in the what turn seeing to current not a depth then pre-coronavirus it global this situation now. stage stage and continued U.S.
on shareholders. employees economists for our keeping serving leave our the those will liquidity and ensuring ample debates instead and our safe, customers, will focus We to
business year me be some shared, we the What you these misleading well trends the changing stay-at-home tell entered I rapidly is of pre-coronavirus in I and encountered you that provide during as stage, seeing. the mix are significant let averages can with can our was Because performing headwinds the coming as times, into we period. we and
weekly the strong the especially international Asia about these XX% continued outbound that April. side, into trends is down the remains to appears of X%. transition into volume growth with stabilizing a and be first to half is verticals and had U.S. positive commercial our average economically, up made healthcare, of March, industry has April. around March end residential of on and extended continues growth be and for volume and with trend commercial positive daily Healthcare in the in deliveries. at industrial except BXC have in No weak April Europe demand. In in
driven volume SurePost, up grown and April, in are X%. digits single shipments ground daily mid about average has far So residential air by and U.S.
from delivery Importantly, elevated, commercial remain year. on down putting delivery density. significantly ground driven and pressure be high service levels last is miles to and continue volume Productivity stops and our
this best enabled network the future and that that behavior may It technology for increased consumer for also and transformation more us financial flexibility, difficult future. know moving the I so into operational year company, at it’s we of the investment hope guidance continue provides I a initiatives time; us through delivering a when but phase, will position new so and we’ll solutions as recovery. is realities by and don’t just bridge move business pieces put know crisis recovery to decisions a inside. as will change we us We likely remainder help that this to and competitive provide can’t result know that glimpse in of this prioritize market the UPS’ see we the the helpful new we the all forward, position from move well for outside automation,
the Thank Operator, and you, lines. please open
