What this report says is typical of corporate America today.
UPS meets solid Q3 results with ‘constructive dissatisfaction’
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UPS meets solid Q3 results with ‘constructive dissatisfaction’
One of UPS Inc. (NYSE:UPS) founder Jim Casey’s favorite slogans was “constructive dissatisfaction,” the idea that no matter how well the company was doing, it could always do better. That mantra was in full flower Wednesday morning during UPS’ analyst call to discuss its third-quarter results.
The results, as many had forecast, were strong. Adjusted diluted earnings per-share hit $2.28, 42 cents a share above estimates of analysts polled by Barchart. Revenue across UPS’ three main business units — domestic package, international package and supply chain and freight — climbed nearly 16% to $21.2 billion. Operating profits for the international and supply chain and freight segments — the latter being all of the company’s non-package operations — ran well into the double digits, with international margins soaring 23.6% year-on-year. Revenue for the high-margin small to midsize (SMB) customer category increased 18.7%, the highest year-on-year growth rate in 16 years.
Yet UPS CEO Carol Tomé and CFO Brian Newman spent the better part of the hour-long call discussing improvements needed to streamline the biggest ship in the shipping business. The catalyst of their comments was the year-over-year decline in operating profit for the U.S. small-package division, the company’s biggest unit. Adjusted profits in the quarter fell to $1.13 billion from $1.24 billion as costs ran ahead of revenues, the Atlanta-based company said.
The results, as many had forecast, were strong. Adjusted diluted earnings per-share hit $2.28, 42 cents a share above estimates of analysts polled by Barchart. Revenue across UPS’ three main business units — domestic package, international package and supply chain and freight — climbed nearly 16% to $21.2 billion. Operating profits for the international and supply chain and freight segments — the latter being all of the company’s non-package operations — ran well into the double digits, with international margins soaring 23.6% year-on-year. Revenue for the high-margin small to midsize (SMB) customer category increased 18.7%, the highest year-on-year growth rate in 16 years.
Yet UPS CEO Carol Tomé and CFO Brian Newman spent the better part of the hour-long call discussing improvements needed to streamline the biggest ship in the shipping business. The catalyst of their comments was the year-over-year decline in operating profit for the U.S. small-package division, the company’s biggest unit. Adjusted profits in the quarter fell to $1.13 billion from $1.24 billion as costs ran ahead of revenues, the Atlanta-based company said.
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