UPS releases 3Q 2021 earnings

UPS (NYSE:UPS) today announced third-quarter 2021 consolidated revenue of $23.2 billion, a 9.2% increase over the third quarter of 2020. Consolidated operating profit was $2.9 billion, up 22.6% compared to the third quarter of 2020, and up 23.4% on an adjusted basis. Diluted earnings per share were $2.65 for the quarter, 18.3% above the same period in 2020, and up 18.9% on an adjusted basis.

For the third quarter of 2021, GAAP results include after-tax transformation and other charges of $54 million, equivalent to $0.06 per share. Year-to-date cash from operations was $11.8 billion, up 26.7% compared to the same period in 2020, with free cash flow of $9.3 billion, a 52.3% increase above the first nine months of 2020.

“I want to thank all UPSers for delivering what matters with great service to our customers,” said Carol Tome, UPS chief executive officer. “The actions we are taking under our better not bigger strategic framework to improve revenue quality, enhance productivity and remain disciplined on capital allocation are driving our positive financial performance.”

U.S. Domestic Segment

• Revenue was up 7.4%, driven by a 12.0% increase in revenue per piece.
• Operating margin was 9.9%; adjusted operating margin was 10.0%.

International Segment

• Revenue increased 15.5%, with strong growth from all regions.
• Operating margin was 22.3%; adjusted operating margin was 23.5%.

Supply Chain Solutions Segment

• Revenue increased 8.4%, led by Forwarding and Logistics, which combined grew 35.4%.
• Operating margin was 10.3%; adjusted operating margin was 10.5%.