UPS Reports $22.2 Billion Consolidated Revenue for Third Quarter 2024, Up from Last Year

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UPS Reports $22.2 Billion Consolidated Revenue for Third Quarter 2024, Up from Last Year

Foreks - UPS (NYSE: UPS) announced its financial results for the third quarter of 2024. The company achieved consolidated revenue of $22.2 billion, a 5.6% increase compared to the same period last year. The Consolidated Operating Income rose to $2 billion, a 47.8% increase over the third quarter of 2023, showing a 22.8% increase on a non-GAAP adjusted basis. For the third quarter, the Diluted Earnings Per Share were $1.80, and the Non-GAAP Adjusted Diluted Earnings Per Share increased by 12.1% year-over-year to $1.76.

The GAAP results for the third quarter of 2024 include a $36 million post-tax transformation charge and other expenses, equating to $0.04 in Diluted Earnings Per Share. From the $152 million gain from the divestiture of the Coyote Logistics business, $116 million has been deducted for transformation strategy costs.

UPS CEO Carol Tomé stated, “First, I want to thank all UPS employees for their hard work and efforts in the third quarter. After a challenging 18-month period, our company has entered a phase of revenue and profit growth again. As we enter the busy season, we are ready to execute another successful holiday season, and we are committed to maintaining the momentum we demonstrated in the third quarter.”

U.S. Domestic Segment

2024 Q3

Adjusted 2024 Q3

2023 Q3

Adjusted 2023 Q3

Revenue

$14,450 million

$13,660 million

Operating Income

$898 million

$974 million

$571 million

$665 million

Revenue increased by 5.8%, driven by a 6.5% increase in revenue per piece due to changes in the product mix. Operating income increased by 6.2%, while non-GAAP adjusted operating income rose by 6.7%.

International Segment

2024 Q3

Adjusted 2024 Q3

2023 Q3

Adjusted 2023 Q3

Revenue

$4,441 million

$4,267 million

Operating Income

$798 million

$792 million

$630 million

$675 million

Revenue grew by 3.4%, aided by a 2.5% increase in average daily volume. Operating income was up 18.1%, while non-GAAP adjusted operating income reached 18.0%.

Supply Chain Solutions

2024 Q3

Adjusted 2024 Q3

2023 Q3

Adjusted 2023 Q3

Revenue

$3,384 million

$3,134 million

Operating Income

$289 million

$217 million

$142 million

$275 million

Revenue increased by 8% due to growth in air and ocean transportation and ongoing participation in USPS air cargo. Operating income rose by 8.5%, while non-GAAP adjusted operating income was up 6.4%.

2024 Outlook

UPS has prepared an updated non-GAAP guidance to reflect future fee revisions or the impacts of unforeseen events that could be included in the reported results and may be significant. In the third quarter, the company completed the divestiture of Coyote Logistics, and the expected revenue and profits related to this business had previously been included in the revenue and operating margin targets provided by the company. UPS has updated its consolidated revenue and operating margin targets for 2024 to reflect the impacts of the completed Coyote divestiture and the company's expectations for the fourth quarter.

Approximately $91.1 billion in Consolidated Revenue Approximately 9.6% Non-GAAP Adjusted Consolidated Operating Margin Approximately $4 billion in Capital Expenditures

Subject to Board approval, dividend payments are expected to be around $5.4 billion.