While the Covid-19 Global Pandemic has negatively affected many businesses, it has obviously not had any negative effect on UPS business, that’s for sure. The pandemic has led to a tremendous increase in Business to Consumer home deliveries and obviously UPS is benefiting from that surge, with no end in sight. In fact we believe this trend will continue for the long term. Here are some of the key highlights from the UPS earnings report:
- Average Daily Volume surged 20.9% to 21.1 Million packages per day, resulting in record growth
- Second Quarter 2020 Consolidated Revenues increased to $20.5 Billion, a 13.4% increase from the second quarter of 2019
- Adjusted Net Income was $1.9 Billion, an 8.8% increase from the same period in 2019
- Adjusted Operating Profit was $2.3 Billion, up 7.4% compared to Quarter 2, 2019 figures
- Domestic Demand for Residential Deliveries surged in the second quarter by 65.2%
Carol Tome, UPS’ Chief Executive officer, had the following to say. “Our results were better than 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.”
It will be interesting to see if these numbers will continue to grow at these record paces as we enter Peak Shipping Season. There are divergent schools of thought on that topic, with some industry experts believing the Peak Season will be a bust, while others believe it will be strong. Only time will tell of course.
to receive our FREE white papers: