United Parcel Service Inc. (UPS)
- UPS is the world’s premier package delivery company and a leading provider of global supply chain management solutions.
- 2022, it delivered an average of 24.3 million packages per day, totaling 6.2 billion packages during the year.
United Parcel Service Inc. (UPS) (NYSE: UPS, LSE: 0R08) is a package delivery company and a leading provider of global supply chain management solutions. The company operate one of the largest airlines and one of the largest fleets of alternative fuel vehicles under a global UPS brand.
The company deliver packages each business day for 1.6 million shipping customers to 11.1 million delivery customers in over 200 countries and territories. In 2022, the company delivered an average of 24.3 million packages per day, totaling 6.2 billion packages during the year. Total revenue in 2022 was $100.3 billion.
UPS to Acquire MNX
September 28, 2023; UPS announced that it has entered into an agreement to acquire MNX Global Logistics (MNX), a global time-critical logistics provider. Once completed, the acquisition will bring even more precision and capability to UPS customers in healthcare and related industries who rely upon time-sensitive, often life-impacting logistics solutions. Whether it’s to save a life or to get a grounded airplane back in the air faster, MNX will help UPS deliver what its customers need, when they need it, with even greater confidence.
MNX’s capabilities in radio-pharmaceuticals and temperature-controlled logistics will help UPS Healthcare and its clinical trial logistics subsidiary Marken meet the growing demand for these services in the healthcare industry. Together with UPS Express Critical, the company will offer industry-leading global service to customers in need of time-critical, temperature-sensitive logistics.
The transaction is expected to close by the end of the year, subject to customary regulatory review and approval. The value and terms of the transaction are not being disclosed at this time.
UPS Recruits 100,000 Seasonal Workers
September 26, 2023; UPS will hire more than 100,000 seasonal employees to serve the 2023 holiday rush. As the industry leader in on-time delivery performance for five consecutive peak seasons, UPS is positioned again to deliver the reliable service that customers depend on year-round, especially during the important holiday shopping season.
The company is filling full- and part-time seasonal positions – primarily seasonal delivery drivers, Commercial Driver’s License (CDL) drivers and package handlers – by offering competitive wages and multiple shifts in hundreds of locations across the country. Permanent positions also are available in some areas for those who apply early. The company’s streamlined, digital application process now takes less than 20 minutes for most people – from filling out an online application to receiving a job offer. And nearly 80% of seasonal positions do not require an interview.
2Q 2023 Earnings
August 08, 2023; UPS announced second-quarter 2023 consolidated revenues of $22.1 billion, a 10.9% decrease from the second quarter of 2022. Consolidated operating profit was $2.8 billion, down 21.4% compared to the second quarter of 2022, and down 18.4% on an adjusted basis. Diluted earnings per share were $2.42 for the quarter; adjusted diluted earnings per share of $2.54 were 22.8% below the same period in 2022.
- Consolidated Revenues of $22.1B, Compared to $24.8B Last Year
- Consolidated Operating Profit of $2.8B; Adj. Consolidated Operating Profit of $2.9B
- Consolidated Operating Margin of 12.6%; Adjusted Consolidated Operating Margin of 13.2%
- Diluted EPS of $2.42; Adj. Diluted EPS of $2.54, Compared to $3.29 Last Year
UPS is updating its full-year 2023 consolidated revenue and adjusted operating margin targets primarily to reflect the volume impact from labor negotiations and the costs associated with the tentative agreement reached with the International Brotherhood of Teamsters on July 25, 2023. UPS now expects full-year 2023 consolidated revenue to be about $93 billion and an adjusted operating margin of around 11.8%.
The company is reaffirming its capital allocation plans and expects capital expenditures to be about $5.3 billion, dividend payments to be around $5.4 billion, subject to board approval, and share repurchases to be around $3 billion.
United Parcel Service, Inc. ("UPS"), founded in 1907, is a package delivery company and a leading provider of global supply chain management solutions. The company offer a broad range of industry-leading products and services through its extensive global presence. The company's services include transportation and delivery, distribution, contract logistics, ocean freight, airfreight, customs brokerage and insurance. The company operate one of the largest airlines and one of the largest fleets of alternative fuel vehicles under a global UPS brand.
The company deliver packages each business day for approximately 1.6 million shipping customers to 11.1 million delivery recipients in over 220 countries and territories. In 2022, the company delivered an average of 24.3 million packages per day, totaling 6.2 billion packages during the year. Total revenue in 2022 was $100.3 billion.
Products and Services
Global Small Package
The company's global small package operations provide time-definite delivery services for express letters, documents, packages and palletized freight via air and ground services. These services are supported by numerous shipping, visibility and billing technologies. These include its Digital Access Program, which embeds its shipping solutions directly into leading e-commerce platforms, enabling it to more broadly reach SMB customers and e-commerce markets.
The company offer same-day pickup of air and ground packages seven days a week. The company's global smart logistics network offers approximately 197,000 entry points where customers can tender packages to it at locations and times convenient to them. This includes UPS drivers who can accept packages, UPS drop boxes, UPS Access Point locations, The UPS Store locations, authorized shipping outlets and commercial counters, alliance locations and customer centers attached to UPS facilities. The company offer a portfolio of returns services in more than 140 countries.
Supply Chain Solutions
Supply Chain Solutions consists of its forwarding, truckload brokerage, logistics and distribution and other businesses. Supply chain complexity creates demand for a global service offering that incorporates transportation, distribution and international trade and brokerage services, with complementary financial and information services. Many companies see value in outsourcing certain logistics activity. With increased competition and growth opportunities in new markets, businesses require flexible and responsive supply chains to support their strategies. The company aim to meet this demand by offering a broad array of supply chain services in more than 200 countries and territories.
UPS has approximately 536,000 employees (excluding temporary seasonal employees), of which 443,000 are in the U.S. and 93,000 are located internationally. The company's global workforce includes approximately 90,000 management employees (44% of whom are part-time) and 446,000 hourly employees (50% of whom are part-time). More than 70% of its U.S. employees are represented by unions, primarily those employees handling or transporting packages. Many of these employees are employed under a national master agreement and various supplemental agreements with local unions affiliated with the International Brotherhood of Teamsters which run through July 31, 2023. In addition, approximately 3,400 of its pilots are represented by the Independent Pilots Association (“IPA”). During 2022, the company extended its contract with the IPA for an additional two years beginning at the end of the current contract on September 1, 2023.
Aircraft fleet as of December 31, 2022
|Description||Owned & Finance Leases|
Operating Leases &
Charters From Others
|On Order||Under Option|
The company operate a global ground fleet of approximately 125,000 package cars, vans, tractors and motorcycles, including more than 15,000 alternative fuel and advanced technology vehicles.
In 1907, two teenage entrepreneurs created what would become the world's largest package delivery service.
|1907||Starting in a Seattle basement with a $100 loan, Claude Ryan and Jim Casey opened the American Messenger Company.|
|1919||the company made its first expansion beyond Seattle to Oakland, California, where the name United Parcel Service debuted.|
|1930||UPS makes its first expansion to the East Coast in metropolitan New York City, moving the corporate office from Los Angeles to 331 East 38th Street, New York City.|
|1975||UPS became the first package delivery company to serve every address in the continental U.S.|
|1988||UPS won approval from the Federal Aviation Administration (FAA) to operate its own aircraft, launching UPS Airlines.|
|1994||UPS moved its corporate headquarters to Atlanta with construction emphasizing energy efficiencies and an extensive tree protection and replacement program. The location at 55 Glenlake Parkway is still its current home. This year also saw the debut of UPS.com.|
|2001||In 2001, UPS entered the retail business acquiring Mail Boxes Etc., Inc., the world's largest franchisor of retail shipping, postal and business service centers. Within two years, approximately 3,000 Mail Boxes Etc. locations in the U.S. re-branded as The UPS Store and began offering lower UPS-direct shipping rates.|
|2018||After expanding its portfolio throughout the decade, including acquiring tech-driven freight brokerage Coyote Logistics in 2015, UPS began offering Saturday ground delivery and Saturday pickup services. It was the first time in the company's history, delivering shippers industry-leading Saturday choices.|
|2020||Carol B. Tomé began her tenure as the 12th CEO of UPS on June 1, 2020, becoming the first female CEO in the company’s 113-year history.|
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