- Consolidated Revenues of $23.4B, Up 14.5% from Last Year
- Consolidated Operating Profit of $3.3B, Up 47.3% from Last Year; Up 40.8% on an Adjusted* Basis
- Diluted EPS of $3.05, up 50.2% from Last Year; Adjusted Diluted EPS Up 43.7% to $3.06
UPS has announced a second-quarter 2021 consolidated revenue of $23.4 billion, a 14.5% increase over the second quarter of 2020. Consolidated operating profit was $3.3 billion, up 47.3% compared to the second quarter of 2020, and up 40.8% on an adjusted basis. Diluted earnings per share were $3.05 for the quarter, 50.2% above the same period in 2020, and up 43.7% on an adjusted basis.
For the second quarter of 2021, GAAP results include after-tax transformation and other charges of $11 million, equivalent to $0.01 per share. Also in the second quarter, the company completed its divestiture of UPS Freight on April 30. The sale triggered the re-measurement of certain U.S. pension and postretirement benefit plans. As a result, UPS pension and postretirement liabilities were lowered by $2.1 billion. The re-measurement had no meaningful impact to the company’s consolidated second-quarter net earnings. Year-to-date cash from operations was $8.5 billion, up 42.2% compared to the same period in 2020, with a free cash flow of $6.8 billion, a 74.7% increase above the first six months of 2020.
“I want to thank all UPSers for executing our strategy and delivering high service levels, which fueled record financial results in the second quarter,” said Carol Tomé, UPS chief executive officer. “Through our better not bigger framework, we are moving our world forward by delivering what matters.”
U.S. Domestic Segment
| 2Q 2021 | Adjusted 2Q 2021 | 2Q 2020 | Adjusted 2Q 2020 | |
| Revenue | $14,402 M | $13,074 M | ||
| Operating profit | $1,567 M | $1,675 M | $1,182 M | $1,215 M |
- Revenue was up 10.2%, driven by a 13.4% increase in revenue per piece from a strong improvement in all products.
- The operating margin was 10.9%; the adjusted operating margin was 11.6%.
International Segment
| 2Q 2021 | Adjusted 2Q 2021 | 2Q 2020 | Adjusted 2Q 2020 | |
| Revenue | $4,817 M | $3,705 M | ||
| Operating profit | $1,184 M | $1,190 M | $771 M | $842 M |
- Revenue increased 30.0%, led by Europe.
- The operating margin was 24.6%; the adjusted operating margin was 24.7%.
Supply Chain Solutions Segment
| 2Q 2021 | Adjusted 2Q 2021 | 2Q 2020 | Adjusted 2Q 2020 | |
| Revenue | $4,205 M | $3,680 M | ||
| Operating profit | $507 M | $408 M | $259 M | $267 M |
- Revenue increased 14.3%, driven by strong demand in nearly all businesses.
- The operating margin was 12.1%; the adjusted operating margin was 9.7%.
Outlook
For 2021, the company is projecting a consolidated operating margin of approximately 12.7% and a return on invested capital of approximately 28%. Further, the company is reaffirming its capital allocation plans for 2021:
- Capital expenditures are planned to be about $4.0 billion.
- Long-term debt repayments of $2.55 billion have been completed.
- The effective tax rate for the remainder of the year is expected to be around 23%.
* “Adjusted” amounts are non-GAAP financial measures. See the appendix to this release for a discussion of non-GAAP financial measures, including a reconciliation to the most closely correlated GAAP measure.
