UPS 3Q Earnings Climb 69 Percent on Revenue Growth of 9 Percent
UPS (NYSE:UPS) today announced adjusted diluted earnings per share of $0.93 for the third quarter of 2010, a 69% improvement over the prior-year period. Global revenue grew 9.3%, generating $1.5 billion in adjusted operating profit, a 62% increase.
On a reported basis, diluted earnings per share were $0.99, an 80% increase over the $0.55 in the same period last year. During the quarter, UPS recorded an after-tax benefit of $61 million on the sale of real estate.
“UPS once again exceeded expectations due to superior execution across all business units and our ability to provide solutions that create value for our customers,” said Scott Davis, UPS chairman and CEO. “We continue to deliver significant earnings growth and margin expansion in the current economic environment. This is a true testament to what can be accomplished when you have excellent people, superior service and an unmatched global portfolio.”
Based on the company’s performance, UPS has increased its guidance for 2010 adjusted diluted earnings to a range of $3.48 to $3.54 per share, a 51%-to-53% increase over last year.
|
Adjusted
|
|||
| Consolidated Results |
3Q 2010
|
3Q 2010
|
3Q 2009
|
| Revenue |
$12.19 B
|
|
$11.15 B
|
| Operating profit |
$1.62 B
|
$1.51 B
|
$929 M
|
| Operating margin |
13.3 %
|
12.4 %
|
8.3 %
|
| Average volume per day |
15.0 M
|
|
14.3 M
|
| Diluted earnings per share |
$0.99
|
$0.93
|
$0.55
|
For the three months ended Sept. 30, 2010, revenue increased 9.3% on average daily volume growth of 5%. UPS delivered 958 million packages in the quarter.
Adjusted operating margin expanded 410 basis points to 12.4%. On a reported basis, operating margin was 13.3%.
During the quarter, UPS unveiled a new communications platform with the theme “We Love Logistics.” This campaign is UPS’s first coordinated global advertising effort and is designed to demonstrate the power of logistics to businesses around the world.
Full story: UPS 3Q Earnings Climb 69 Percent on Revenue Growth of 9 Percent – UPS Pressroom.
UPS Joins USPS to Enable Consumers To Return Packages via Home Mailbox
UPS Makes It More Convenient to Return Goods
ATLANTA, Aug 12, 2010 — UPS today announced it is launching UPS Returns(R) Flexible Access, a new service with a unique label that allows consumers to drop returns at any U.S. Postal Service(R) (USPS) location or personal mailbox in addition to the thousands of UPS locations nationwide.
UPS began testing the service last year with a few retailers such as BuySeasons, the largest retailer of costumes and party supplies on the Internet. Because of the positive customer response, UPS now is making the returns service more broadly available.
“Our experience with UPS is enabling growth for our business and allowing us to provide a higher level of service to our customers,” said Terry Rowinski, vice president of operations for BuySeasons. “UPS Returns Flexible Access is an innovative solution and we are excited to be one of the first customers to implement the product into our business model.”
UPS Returns Flexible Access utilizes the Postal Service’s Parcel Return Service(R), combined with UPS’s own drop-off locations and delivery network, to provide retailers’ customers with increased convenience when returning items. Customers of participating retailers receive special package labels that allow them to enter returns packages in more than 150 million postal access points — including personal mailboxes — for their postal carrier to pick up.
Consumers also can drop the package off at their local U.S. Post Office,(TM) in postal collection boxes or at traditional UPS drop-off locations including The UPS Store(R), UPS drop boxes, UPS customer centers, third-party retailers (Office Depot, Staples, and Authorized Shipping Outlets) or hand it to a UPS driver. The combination of UPS and postal access channels creates the most extensive returns network available to consumers today.
After a returns package is transported to a Postal Service location for dispatch to UPS, a UPS driver picks it up and transports the package back to the retailer via the UPS ground network. This offers retailers an inbound view of returns packages, facilitating improved customer service and cost savings due to better inbound operations planning.
“This game-changing consumer-to-business returns service improves UPS’s returns portfolio, which is already the most extensive in the industry,” said Linda Shepherd West, new product development director at UPS. “Working with the U.S. Postal Service to process returns through more than 150 million access points provides retailers the added flexibility they need to enhance their customer’s overall experience.”
UPS Returns Flexible Access is just another example of the enhancements UPS is making to its market-leading returns portfolio. UPS Returns services feature better time-in-transit than traditional returns consolidators. In addition, most UPS Returns services are available internationally, simplifying the returns process from 98 countries or territories around the globe. The UPS Developer Kit enables customers to integrate UPS Returns(R) into their own Web sites and enterprise applications.
To learn more about UPS Returns Flexible Access, visit www.ups.com/flexibleaccess.
USPS Pilot Program With UPS Is Underway
The USPS-UPS pilot program extending USPS Parcel Return Service (PRS) to participating UPS business customers (Link, 2/4) is under way. UPS has named the service “UPS Returns Flexible Access.”
The pilot lets customers return qualified parcels with UPS or the Postal Service. These parcels have a label that combines elements of the UPS ground and Postal Service’s Parcel Return Service labels. This means that even if — at first glance — the label looks like it came from UPS, the Postal Service should accept it.
Post Offices designated as Return Delivery Units (RDUs) for this pilot program should have received a letter from UPS and training on specific back office procedures to hold and scan the parcels. Employees at a facility that has not been designated as an RDU for this program should not scan these packages before forwarding them with other outgoing mail.
To determine whether the package is part of UPS Returns Flexible Access, employees should read from the bottom up to check for the USPS-PRS label. All employees need to know what the label looks like and be prepared to accept these parcels.
Customers can give a parcel using this label to their carriers, leave them in a mailbox for carriers to pick up or drop them in a collection box or at the Post Office. And because these are PRS packages, customers also can use the Carrier Pickup option available on usps.com.
“If we do this right, we can build volume and that will give us more PRS packages to accept, collect and process,” said Vice President, Ground Shipping, Jim Cochrane. “Parcel Return Service has generated significant new revenue since it launched in 2003, and retailers count on us to process returns correctly. Keeping these simple processes in mind will help us serve customers better as more of them learn about — and use — this great service.”
Click here for an image of a poster with information on UPS Returns Flexible Access.
source: USPS News Link
UPS To Test Parcel Return Service Using USPS
UPS will begin a pilot program to test Parcel Return Service (PRS), allowing customers to return items — originally shipped by UPS — to participating retailers using the Postal Service for pickup. Consumers will gain the convenience of USPS access points for a return pickup — collection boxes, Post Offices, and Free Package Pickup from home or business addresses.
USPS will consolidate the PRS packages at designated postal facilities, where they will be picked up by UPS for the final return leg of the trip back to the retailer.
Returned packages are a growing market segment, thanks to increased Internet and catalog sales and the recycling of small electronics. Market studies indicate that in order to maintain consumer loyalty and repeat business, the returns process must be easy.
The Postal Service developed PRS for merchants that experience a large number of returns and want to provide their customers with a convenient return solution, and for shipping consolidators or reverse logistics providers. PRS has shown steady growth, with more than 50 million packages shipped and more than $148 million in revenue since its launch in 2003.
“Working with UPS on this extension of PRS combines the strengths of both companies, leveraging the Postal Service’s unparalleled reach to every address in the United States,” said Jim Cochrane, vice president of Ground Shipping. “The added value of high visibility and the convenience of the most extensive network of drop-off and pick-up options available in the consumer market today make this service unbeatable.”
UPS will begin pilot programs using PRS in late February. Watch for PRS service talks and other information from Ground Shipping before the launch.
source: USPS