UPS (NYSE:UPS) today announced third-quarter 2021 consolidated revenue of $23.2 billion, a 9.2% increase over the third quarter of 2020. Consolidated operating profit was $2.9 billion, up 22.6% compared to the third quarter of 2020, and up 23.4% on an adjusted basis. Diluted earnings per share were $2.65 for the quarter, 18.3% above the same period in 2020, and up 18.9% on an adjusted basis.

For the third quarter of 2021, GAAP results include after-tax transformation and other charges of $54 million, equivalent to $0.06 per share. Year-to-date cash from operations was $11.8 billion, up 26.7% compared to the same period in 2020, with free cash flow of $9.3 billion, a 52.3% increase above the first nine months of 2020.

“I want to thank all UPSers for delivering what matters with great service to our customers,” said Carol Tomé, UPS chief executive officer. “The actions we are taking under our better not bigger strategic framework to improve revenue quality, enhance productivity and remain disciplined on capital allocation are driving our positive financial performance.”

U.S. Domestic Segment

• Revenue was up 7.4%, driven by a 12.0% increase in revenue per piece.
• Operating margin was 9.9%; adjusted operating margin was 10.0%.

International Segment

• Revenue increased 15.5%, with strong growth from all regions.
• Operating margin was 22.3%; adjusted operating margin was 23.5%.

Supply Chain Solutions Segment

• Revenue increased 8.4%, led by Forwarding and Logistics, which combined grew 35.4%.
• Operating margin was 10.3%; adjusted operating margin was 10.5%.

Outlook

For the full year in 2021, the company is raising its consolidated adjusted operating margin target to approximately 13.0% and expects adjusted return on invested capital to be around 29%. Capital expenditures are now planned to be approximately $4.2 billion and the company’s effective tax rate is expected to be about 22.5%.

_{* “Adjusted” and free cash flow 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.}

Contacts:
UPS Media Relations: 404-828-7123 or [email protected]
UPS Investor Relations: 404-828-6059 (option 4) or [email protected]

Conference Call Information

UPS CEO Carol Tomé and CFO Brian Newman will discuss third-quarter results with investors and analysts during a conference call at 8:30 a.m. ET, October 26, 2021. That call will be open to others through a live Webcast. To access the call, go to www.investors.ups.com and click on “Earnings Conference Call.” Additional financial information is included in the detailed financial schedules being posted on www.investors.ups.com under “Quarterly Earnings and Financials” and as filed with the SEC as an exhibit to our Current Report on Form 8-K.