Consolidated revenues increased 15.9% during this period
UPS recently announced third-quarter 2020 consolidated revenue of US$ 21.2bn, a 15.9% increase over the corresponding third quarter of 2019, the company revealed in a press communiqué.
Consolidated average daily volume increased 13.5% year over year. Net income was US$ 2.0bn for the quarter, 11.8% above the same period in 2019, or 10.7% on an adjusted basis. Operating profit was US$ 2.4bn, up 11.0% compared to last year’s third quarter, or 9.9% on an adjusted basis.
“Our performance highlights the agility of our global integrated network amid the ongoing challenges of the pandemic. Our results were fueled by continued strong outbound demand from Asia and growth from small and medium-sized businesses,” noted Carol Tomé, CEO, UPS.
In the US domestic segment, the average daily volume increased 13.8%, with growth across all products and continued elevated residential demand. The operating margin was 8.3%; adjusted operating margin was 8.6%. The reported revenues and operating profit for Q3-2020 for this segment was US$ 13,225mn and US$ 1098mn respectively.
In the international segment, the average daily volume grew 12.1%, with double-digit export volume growth globally and continued strong outbound demand from Asia. The operating margin was 23.6%; adjusted operating margin was 23.8%. The reported revenues and operating profit for Q3-2020 for this sector was US$ 4,087mn and US$ 966mn respectively.
In the supply chain and freight segment, the revenue increased 16.5%, driven by strong freight forwarding demand out of Asia. Operating margin was 7.6%; adjusted operating margin was 7.7%. The reported revenues and operating profit for Q3-2020 for this category was US$ 3,926mn and US$ 299mn respectively.
“Our better, not bigger approach had a positive impact on our performance in the quarter, specifically through the revenue-quality actions we’ve taken. Additionally, we recently launched new initiatives to further reduce our costs,” noted Brian Newman, CFO.
