United Parcel Service Inc. (UPS:NYSE) today announced second-quarter 2020 financial results for the period ended June 30, 2020.
The firm reported that in Q2/20, consolidated revenue increased by 13.4% to $20.5 billion, compared to $18.0 billion in Q2/19. The company additionally indicated that Q2/20 net income was $1.8 billion and adjusted net income was $1.9 billion, representing an 8.8% increase versus Q2/19.
The company also advised that in Q2/20 diluted earnings per share increased by 4.6% to $2.03 compared to Q2/19 and adjusted diluted earnings per share increased by 8.7% to $2.13 in the same corresponding period.
The company's CEO Carol Tomé commented, "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."
The company highlighted that its consolidated average daily volume surged to a record 20.9% growth in the quarter.
The firm listed that in its U.S. domestic segment average daily volume increased 22.8%, reaching 21.1 million packages per day and that residential delivery demand surged in the quarter, driving B2C shipment growth up 65.2%.
The company also advised that its international segment grew average daily volume by 9.8%, due largely to strong outbound demand from Asia and an increase in Europe in cross-border e-commerce and that supply chain and freight segment revenue was up 8.5% in the second quarter, driven primarily by elevated air freight forwarding demand out of Asia.
The company advised that at this time it is not providing any revenue and diluted earnings per share guidance due to current uncertainty economic situation.
Brian Newman, CFO of UPS, "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 U.S. 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."
UPS is a well-known multi-billion-dollar global shipping company headquartered in Atlanta, Ga. The firm employs more than 495,000 people and provides a broad range of logistics solutions including the transportation of packages and freight via roads, rails, air and oceans to more than 220 countries worldwide.
United Parcel Service began the day with a market capitalization of around $106.6 billion with approximately 862.2 million shares outstanding and a short interest of about 2.1%. UPS shares opened 11% higher today at $137.66 (+$13.98, +11.30%) over yesterday's $123.68 closing price and reached a new 52-week high price this morning of $145.50. The stock has traded today between $135.15 and $145.50 per share and is currently trading at $141.40 (+$17.55, +14.17%).[NLINSERT]
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