UPS has announced Q4 2019 adjusted earnings per share of $2.11, an 8.8% increase over the same period last year. The company’s results highlight the strong volume growth in the US domestic segment and the impact of successful execution from all segments.
- UPS’s transformation investments generated higher total revenue, operating profit growth and margin expansion in all segments.
- Total revenue increased to $74 billion, driven by strong volume growth in the US
- Capital expenditures were $6.4 billion, and on an adjusted basis $6.5 billion, to support network enhancements.
- Annual adjusted free cash flow exceeded $4.1 billion.
- Dividends paid were $3.3 billion, a per-share increase of 5.5% over the prior year.
- The company repurchased more than 9 million shares for approximately $1 billion.
“Our network improvements from transformation enabled UPS to embrace a surge in demand for air products while at the same time generate productivity improvements and positive operating leverage,” said David Abney, UPS chairman and CEO. “Looking to 2020, we will continue to adapt to the changing environment, strengthen our network and create new solutions to support our strategic growth initiatives and help our customers grow and compete.”
In the fourth quarter of 2019, the company incurred a non-cash, after-tax mark-to-market (MTM) pension charge of $1.8 billion, an after-tax transformation charge of $39 million, and US domestic after-tax legal contingency and expense charges of $91 million, predominantly related to the New York cigarette case. The total impact to EPS was $2.23 per diluted share. MTM pension charges of $1.42 per diluted share were included in the company’s fourth-quarter GAAP results in the prior-year period.
