United Parcel Service saw “better than expected” financial results in 2020’s second quarter as consolidated average daily volume surged to a record 20.9% growth.
Second-quarter 2020 consolidated revenue increased to $20.5bn, a 13.4% increase from the same period 2019. ( Average daily volumes in the United States jumped 22.8% and reached 21.1 million packages per day, the company said, adding that it also saw strong outbound demand from Asia.
Atlanta-based UPS said net income rose 4.7% to $1.77 billion in the quarter ended June 30. Excluding items, the company earned $2.13 per share, beating estimates of $1.07 per share.
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Revenue rose 13.4% to $20.46 billion, beating estimates of $17.48 billion, according to IBES data from Refinitiv.)
Adjusted net income was $1.9bn, 8.8% above the same period in 2019, while the adjusted operating profit was $2.3bin, up 7.4% compared to last year.
Carol Tomé, UPS chief executive officer, said: “Our results were better than we expected, driven in part by the changes in demand that emerged from the pandemic, including a surge in residential volume, COVID-19 related healthcare shipments and strong outbound demand from Asia. “UPSers are keeping the world moving during this time of need and I want to thank our team for their hard work and outstanding efforts to serve our customers, our communities and each other.”
UPS is not providing revenue and guidance due to the “uncertainty around the timing and pace of the economic recovery”. The company said that it is unable to predict the extent of the business impact or the duration of the coronavirus pandemic, or reasonably estimate its operating performance in future quarters.
Brian Newman, UPS chief financial officer, said: “Using the scale and flexibility of our global integrated network, we successfully managed operational challenges throughout the quarter. “Moving forward we are focusing on efficiency and revenue quality to improve US operating margins longer term. Our liquidity and cash position remain strong, allowing us to invest in enabling capabilities through this time of unprecedented business disruption.”
