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8-K - FORM 8-K - UNITED PARCEL SERVICE INC | g20911e8vk.htm |
Exhibit 99.1
For Immediate Release
Contacts: | Norman Black 404-828-7593 Andy Dolny 404-828-8901 |
UPS RELEASES 3RD QUARTER RESULTS
Earnings at High End of Guidance Range;
Volumes Improve Through Quarter
Volumes Improve Through Quarter
ATLANTA, Oct. 22, 2009 UPS (NYSE:UPS) today reported diluted earnings per share of $0.55
for the third quarter on $11.2 billion in revenue. A stabilizing economic environment led to
improving volume trends during the quarter, while UPSs International business continued to
increase market share.
The $0.55 in diluted earnings per share was at the high end of the companys guidance range of
$0.45 to $0.55.
Im encouraged by the signs of economic recovery that are becoming apparent, although we
still have a long way to go, said Scott Davis, chairman and CEO. Ongoing strategic investment
has positioned UPS to capitalize on growth opportunities around the world. We are managing
operations well, while controlling costs and maintaining excellent service.
Consolidated Results | 3Q 2009 | 3Q 2008 | ||||||
Revenue |
$ | 11.15B | $ | 13.11 B | ||||
Operating profit |
$ | 929 M | $ | 1.63 B | ||||
Operating margin |
8.3 | % | 12.4 | % | ||||
Average volume per day |
14.26 M | 14.85 M | ||||||
Diluted earnings per share |
$ | 0.55 | $ | 0.96 |
Consolidated volume for the three months ended Sept. 30, 2009, totaled 927 million packages,
down 2.4% from the same period in 2008. Average daily volume and revenue per piece declined 3.9%
and 11.3%, respectively. Operating profit decreased to $929 million as the benefits of substantial
cost reductions and productivity gains were more than offset by the economic impact of lower
volumes and changes in product mix.
Cash Position
Through effective management of capital expenditures and working capital, UPS generated an
impressive $3.4 billion in free cash flow for the first nine months of 2009. The company also:
| Paid $1.3 billion in dividends. | ||
| Invested $1.2 billion in capital expenditures. | ||
| Repurchased 7.8 million shares at a cost of $396 million. | ||
| Ended the quarter with $2.8 billion in cash and short-term investments. |
- more -
2-2-2
U. S. Domestic Package | 3Q 2009 | 3Q 2008 | ||||||
Revenue |
$ | 6.87 B | $ | 7.84 B | ||||
Operating profit |
$ | 514 M | $ | 1.12 B | ||||
Operating margin |
7.5 | % | 14.2 | % | ||||
Average volume per day |
12.3 M | 12.9 M |
Total package volume was 799 million pieces, down 3.6%, reflecting the weakness in the U.S.
economy. Average daily volume declined 5.1%. While Next Day Air® volume increased 2.4%, ground
decreased 6.2%. Revenue per piece declined 9.1% as a result of significantly lower fuel surcharges
and lighter-weight packages.
As part of its focus on the environment, UPS became the first small package carrier to offer
its customers the ability to offset the carbon emissions generated by the transport of their
packages within the United States. The service is being well received and gives shippers the
option of paying a small fee that UPS matches to purchase carbon offsets.
International Package | 3Q 2009 | 3Q 2008 | ||||||
Revenue |
$ | 2.42 B | $ | 2.95 B | ||||
Operating profit |
$ | 313 M | $ | 386 M | ||||
Operating margin |
12.9 | % | 13.1 | % | ||||
Average volume per day |
1.97 M | 1.90 M |
International average daily volume rose 4%. Domestic volume increased 9.1% due to expansion
of domestic services and an acquisition in Turkey. Export volume per day declined 3.2%,
outperforming the market. Revenue per piece dropped 21%, reflecting the impacts of reduced fuel
surcharges, currency and product mix.
During the quarter, the London Organising Committee of the Olympic Games named UPS the
official logistics and express delivery supplier of the 2012 Games. UPS will oversee the Games
Logistics and Command Centre as well as manage all transportation and supply chain operations,
including venue logistics and transportation, warehousing services, customs brokerage, freight
forwarding and courier services.
Supply Chain and Freight | 3Q 2009 | 3Q 2008 | ||||||
Revenue |
$ | 1.86 B | $ | 2.32 B | ||||
Operating profit |
$ | 102 M | $ | 129 M | ||||
Operating margin |
5.5 | % | 5.6 | % |
Although revenue and operating profit declined in the quarter, operating margin was flat with
last year due to excellent revenue management and cost
control.
- more -
3-3-3
Both the Logistics and Forwarding business units experienced moderation in the rate of revenue
decline. The Logistics unit again achieved significant growth from its services to the healthcare
industry.
UPS Freight performance was negatively impacted by increasingly competitive conditions in the
freight environment. Nonetheless, the business outperformed the market and gained share while
maintaining yields.
Outlook
The business environment in the third quarter began similarly to that of the preceding
quarter. However, we did see profitability improvement due to effective cost management and
firming volume later in the quarter, said Kurt Kuehn, UPSs chief financial officer.
Were confident in our ability to thrive by partnering with our customers and providing them
the services they need to grow, he continued. UPS is poised for the recovery when it comes.
Weve instituted cost initiatives that will approach $1.4 billion this year, making UPS more
efficient than ever. In addition, we will reduce our 2009 capital expenditures to $1.7 billion,
down $500 million from our initial budget.
Although there are signs of economic recovery, forecasters predict U.S. consumers will spend
conservatively for the holidays this year. Our customers have widely differing views on their
outlook for the holiday season. Nevertheless, UPS is primed to handle the seasonal package surge
as it materializes, Kuehn added. Continuing our earnings momentum from the third quarter, we
expect earnings per diluted share within a range of $0.58 to $0.65 for the fourth quarter.
UPS is the worlds largest package delivery company and a global leader in supply chain
services, offering an extensive range of options for synchronizing the movement of goods,
information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and
territories worldwide. UPSs stock trades on the New York Stock Exchange (UPS) and the company can
be found on the Web at UPS.com. To get UPS news direct, visit pressroom.ups.com/RSS.
# # #
EDITORS NOTE: UPS Chairman and CEO Scott Davis and CFO Kurt Kuehn will discuss third quarter
results with investors and analysts during a conference call today at 8:30 a.m. EDT. That
conference call is open to listeners through a live Webcast. To access the call, go to
www.shareholder.com/UPS and click on Earnings Webcast.
UPS routinely posts investor announcements on its web site, investor.shareholder.com /ups, and
encourages those interested in the company to check there frequently.
In some periods, we supplement the reporting of our financial information determined under
generally accepted accounting principles (GAAP) with certain non-GAAP financial measures,
including, as applicable, as adjusted operating profit, operating margin, pre-tax income, net
income and earnings per share. We believe that these adjusted measures provide meaningful
information to assist investors and analysts in understanding our financial results and assessing
our prospects for future performance. We believe these adjusted financial measures are important
indicators of our recurring results of operations because they exclude items that may not be
indicative of or are unrelated to our core operating results, and provide a better baseline for
analyzing trends in our underlying businesses. Furthermore, we use these adjusted financial
measures to determine awards for our management personnel under our incentive compensation plans.
We also provide the amount of our free cash flow to supplement our cash flow determined under GAAP.
We define free cash flow as net cash from operating activities adjusted for capital expenditures,
proceeds from disposals of property, plant and equipment, net change in finance receivables and
other investing activities. We believe free cash flow is an important measure in assessing the
generation of cash for discretionary investments and dividends.
In the first quarter of 2009, we recorded a $181 million pre-tax impairment charge ($116
million after tax) related to our McDonnell-Douglas DC-8-71 and DC-8-73 aircraft fleets. In the
second quarter of 2009, we recorded a $77 million pre-tax charge ($48 million after tax) for the
remeasurement of certain obligations denominated in foreign currencies, in which hedge accounting
was not able to be applied. We presented year-to-date 2009 operating profit, operating margin,
pre-tax income, net income and earnings per share excluding the impact of these items as we believe
these adjusted measures better enable shareowners to focus on period-over-period operating
performance. The underlying matters that produced the impairment and remeasurement charges were
unique, and we do not believe they are reflective of the types of charges that will affect future
results.
Because non-GAAP financial measures are not standardized, it may not be possible to compare
these financial measures with other companies non-GAAP financial measures having the same or
similar names. These adjusted financial measures should not be considered in isolation or as a
substitute for GAAP operating profit, operating margin, pre-tax income, net income and earnings per
share, the most directly comparable GAAP financial measures. These non-GAAP financial measures
reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP
results and the reconciliations to corresponding GAAP financial measures, provide a more complete
understanding of our business. We strongly encourage investors to review our financial statements
and publicly-filed reports in their entirety and not to rely on any single financial measure.
Except for historical information contained herein, the statements made in this release
constitute forward-looking statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements,
including statements regarding the intent, belief or current expectations of UPS and its management
regarding the companys strategic directions, prospects and future results, involve certain risks
and uncertainties. Certain factors may cause actual results to differ materially from those
contained in the forward-looking statements, including economic and other conditions in the markets
in which we operate, governmental regulations, our competitive environment, strikes, work stoppages
and slowdowns, changes in aviation and motor fuel prices, cyclical and seasonal fluctuations in our
operating results, and other risks discussed in the
companys Form 10-K and other filings with the Securities and Exchange Commission, which
discussions are incorporated herein by reference.
United Parcel Service, Inc.
Selected Financial Data Third Quarter
(unaudited)
Selected Financial Data Third Quarter
(unaudited)
Three Months Ended | ||||||||||||||||
September 30, | Change | |||||||||||||||
(amounts in millions, except per share data) | 2009 | 2008 | $ | % | ||||||||||||
Statement of Income Data: |
||||||||||||||||
Revenue: |
||||||||||||||||
U.S. Domestic Package |
$ | 6,868 | $ | 7,841 | $ | (973 | ) | -12.4 | % | |||||||
International Package |
2,422 | 2,949 | (527 | ) | -17.9 | % | ||||||||||
Supply Chain & Freight |
1,863 | 2,323 | (460 | ) | -19.8 | % | ||||||||||
Total revenue |
11,153 | 13,113 | (1,960 | ) | -14.9 | % | ||||||||||
Operating expenses: |
||||||||||||||||
Compensation and benefits |
6,341 | 6,425 | (84 | ) | -1.3 | % | ||||||||||
Other |
3,883 | 5,056 | (1,173 | ) | -23.2 | % | ||||||||||
Total operating expenses |
10,224 | 11,481 | (1,257 | ) | -10.9 | % | ||||||||||
Operating profit: |
||||||||||||||||
U.S. Domestic Package |
514 | 1,117 | (603 | ) | -54.0 | % | ||||||||||
International Package |
313 | 386 | (73 | ) | -18.9 | % | ||||||||||
Supply Chain & Freight |
102 | 129 | (27 | ) | -20.9 | % | ||||||||||
Total operating profit |
929 | 1,632 | (703 | ) | -43.1 | % | ||||||||||
Other income (expense): |
||||||||||||||||
Investment income (loss) |
6 | (13 | ) | 19 | N/A | |||||||||||
Interest expense |
(93 | ) | (104 | ) | 11 | -10.6 | % | |||||||||
Total other income (expense) |
(87 | ) | (117 | ) | 30 | -25.6 | % | |||||||||
Income before income taxes |
842 | 1,515 | (673 | ) | -44.4 | % | ||||||||||
Income tax expense |
293 | 545 | (252 | ) | -46.2 | % | ||||||||||
Net income |
$ | 549 | $ | 970 | $ | (421 | ) | -43.4 | % | |||||||
Net income as a percentage of revenue |
4.9 | % | 7.4 | % | ||||||||||||
Per share amounts |
||||||||||||||||
Basic earnings per share |
$ | 0.55 | $ | 0.96 | $ | (0.41 | ) | -42.7 | % | |||||||
Diluted earnings per share |
$ | 0.55 | $ | 0.96 | $ | (0.41 | ) | -42.7 | % | |||||||
Weighted-average shares outstanding |
||||||||||||||||
Basic |
997 | 1,006 | (9 | ) | -0.9 | % | ||||||||||
Diluted |
1,004 | 1,013 | (9 | ) | -0.9 | % |
Certain prior year amounts have been reclassified to conform to the current year presentation. | 1 |
United Parcel Service, Inc.
Selected Operating Data Third Quarter
(unaudited)
Selected Operating Data Third Quarter
(unaudited)
Three Months Ended | ||||||||||||||||
September 30, | Change | |||||||||||||||
2009 | 2008 | $ / # | % | |||||||||||||
Revenue (in millions): |
||||||||||||||||
U.S. Domestic Package: |
||||||||||||||||
Next Day Air |
$ | 1,348 | $ | 1,696 | $ | (348 | ) | -20.5 | % | |||||||
Deferred |
664 | 818 | (154 | ) | -18.8 | % | ||||||||||
Ground |
4,856 | 5,327 | (471 | ) | -8.8 | % | ||||||||||
Total U.S. Domestic Package |
6,868 | 7,841 | (973 | ) | -12.4 | % | ||||||||||
International Package: |
||||||||||||||||
Domestic |
536 | 598 | (62 | ) | -10.4 | % | ||||||||||
Export |
1,770 | 2,165 | (395 | ) | -18.2 | % | ||||||||||
Cargo |
116 | 186 | (70 | ) | -37.6 | % | ||||||||||
Total International Package |
2,422 | 2,949 | (527 | ) | -17.9 | % | ||||||||||
Supply Chain & Freight: |
||||||||||||||||
Forwarding and Logistics |
1,250 | 1,619 | (369 | ) | -22.8 | % | ||||||||||
Freight |
509 | 598 | (89 | ) | -14.9 | % | ||||||||||
Other |
104 | 106 | (2 | ) | -1.9 | % | ||||||||||
Total Supply Chain & Freight |
1,863 | 2,323 | (460 | ) | -19.8 | % | ||||||||||
Consolidated |
$ | 11,153 | $ | 13,113 | $ | (1,960 | ) | -14.9 | % | |||||||
Consolidated volume (in millions) |
927 | 950 | (23 | ) | -2.4 | % | ||||||||||
Operating weekdays |
65 | 64 | 1 | |||||||||||||
Average Daily Package Volume
(in thousands): |
||||||||||||||||
U.S. Domestic Package: |
||||||||||||||||
Next Day Air |
1,144 | 1,117 | 27 | 2.4 | % | |||||||||||
Deferred |
856 | 859 | (3 | ) | -0.3 | % | ||||||||||
Ground |
10,287 | 10,971 | (684 | ) | -6.2 | % | ||||||||||
Total U.S. Domestic Package |
12,287 | 12,947 | (660 | ) | -5.1 | % | ||||||||||
International Package: |
||||||||||||||||
Domestic |
1,207 | 1,106 | 101 | 9.1 | % | |||||||||||
Export |
767 | 792 | (25 | ) | -3.2 | % | ||||||||||
Total International Package |
1,974 | 1,898 | 76 | 4.0 | % | |||||||||||
Consolidated |
14,261 | 14,845 | (584 | ) | -3.9 | % | ||||||||||
Average Revenue Per Piece: |
||||||||||||||||
U.S. Domestic Package: |
||||||||||||||||
Next Day Air |
$ | 18.13 | $ | 23.72 | $ | (5.59 | ) | -23.6 | % | |||||||
Deferred |
11.93 | 14.88 | (2.95 | ) | -19.8 | % | ||||||||||
Ground |
7.26 | 7.59 | (0.33 | ) | -4.3 | % | ||||||||||
Total U.S. Domestic Package |
8.60 | 9.46 | (0.86 | ) | -9.1 | % | ||||||||||
International Package: |
||||||||||||||||
Domestic |
6.83 | 8.45 | (1.62 | ) | -19.2 | % | ||||||||||
Export |
35.50 | 42.71 | (7.21 | ) | -16.9 | % | ||||||||||
Total International Package |
17.97 | 22.75 | (4.78 | ) | -21.0 | % | ||||||||||
Consolidated |
$ | 9.90 | $ | 11.16 | $ | (1.26 | ) | -11.3 | % | |||||||
Certain prior year amounts have been reclassified to conform to the current year presentation. | 2 |
United Parcel Service, Inc.
Selected Financial Data Year to Date
(unaudited)
Selected Financial Data Year to Date
(unaudited)
Nine Months Ended | ||||||||||||||||
September 30, | Change | |||||||||||||||
(amounts in millions, except per share data) | 2009 | 2008 | $ | % | ||||||||||||
Statement of Income Data: |
||||||||||||||||
Revenue: |
||||||||||||||||
U.S. Domestic Package |
$ | 20,606 | $ | 23,290 | $ | (2,684 | ) | -11.5 | % | |||||||
International Package |
6,908 | 8,656 | (1,748 | ) | -20.2 | % | ||||||||||
Supply Chain & Freight |
5,406 | 6,843 | (1,437 | ) | -21.0 | % | ||||||||||
Total revenue |
32,920 | 38,789 | (5,869 | ) | -15.1 | % | ||||||||||
Operating expenses: |
||||||||||||||||
Compensation and benefits |
19,003 | 19,447 | (444 | ) | -2.3 | % | ||||||||||
Other |
11,375 | 14,763 | (3,388 | ) | -22.9 | % | ||||||||||
Total operating expenses |
30,378 | 34,210 | (3,832 | ) | -11.2 | % | ||||||||||
Operating profit: |
||||||||||||||||
U.S. Domestic Package |
1,374 | 2,975 | (1,601 | ) | -53.8 | % | ||||||||||
International Package |
900 | 1,214 | (314 | ) | -25.9 | % | ||||||||||
Supply Chain & Freight |
268 | 390 | (122 | ) | -31.3 | % | ||||||||||
Total operating profit |
2,542 | 4,579 | (2,037 | ) | -44.5 | % | ||||||||||
Other income (expense): |
||||||||||||||||
Investment income (loss) |
(3 | ) | 58 | (61 | ) | N/A | ||||||||||
Interest expense |
(356 | ) | (342 | ) | (14 | ) | 4.1 | % | ||||||||
Total other income (expense) |
(359 | ) | (284 | ) | (75 | ) | 26.4 | % | ||||||||
Income before income taxes |
2,183 | 4,295 | (2,112 | ) | -49.2 | % | ||||||||||
Income taxes |
788 | 1,546 | (758 | ) | -49.0 | % | ||||||||||
Net income |
$ | 1,395 | $ | 2,749 | $ | (1,354 | ) | -49.3 | % | |||||||
Net income as a percentage of revenue |
4.2 | % | 7.1 | % | ||||||||||||
Per share amounts |
||||||||||||||||
Basic earnings per share |
$ | 1.40 | $ | 2.69 | $ | (1.29 | ) | -48.0 | % | |||||||
Diluted earnings per share |
$ | 1.39 | $ | 2.67 | $ | (1.28 | ) | -47.9 | % | |||||||
Weighted average shares outstanding |
||||||||||||||||
Basic |
998 | 1,021 | (23 | ) | -2.3 | % | ||||||||||
Diluted |
1,004 | 1,028 | (24 | ) | -2.3 | % | ||||||||||
As adjusted income data: |
||||||||||||||||
U.S. Domestic Package (1) |
$ | 1,555 | $ | 2,975 | $ | (1,420 | ) | -47.7 | % | |||||||
International Package (1) |
900 | 1,214 | (314 | ) | -25.9 | % | ||||||||||
Supply Chain & Freight (1) |
268 | 390 | (122 | ) | -31.3 | % | ||||||||||
Total operating profit |
2,723 | 4,579 | (1,856 | ) | -40.5 | % | ||||||||||
Income before income taxes (1), (2) |
$ | 2,441 | $ | 4,295 | $ | (1,854 | ) | -43.2 | % | |||||||
Net income (3) |
$ | 1,559 | $ | 2,749 | $ | (1,190 | ) | -43.3 | % | |||||||
Basic earnings per share (3) |
$ | 1.56 | $ | 2.69 | $ | (1.13 | ) | -42.0 | % | |||||||
Diluted earnings per share (3) |
$ | 1.55 | $ | 2.67 | $ | (1.12 | ) | -41.9 | % |
(1) | 2009 U.S. Domestic Package operating profit and consolidated income before income taxes exclude a $181 million impairment charge on our McDonnell-Douglas DC-8-71 and DC-8-73 airframes, engines, and parts, due to an acceleration of the planned retirement of these aircraft. | |
(2) | 2009 interest expense and consolidated income before income taxes exclude a $77 million charge for the remeasurement of certain obligations denominated in foreign currencies, in which hedge accounting was not able to be applied. | |
(3) | 2009 net income and earnings per share amounts exclude the after-tax effect of the impairment and currency remeasurement charges discussed in (1) and (2), which totaled $164 million. |
Certain prior year amounts have been reclassified to conform to the current year presentation. | 3 |
United Parcel Service, Inc.
Selected Operating Data Year to Date
(unaudited)
Selected Operating Data Year to Date
(unaudited)
Nine Months Ended | ||||||||||||||||
September 30, | Change | |||||||||||||||
2009 | 2008 | $ / # | % | |||||||||||||
Revenue (in millions): |
||||||||||||||||
U.S. Domestic Package: |
||||||||||||||||
Next Day Air |
$ | 4,044 | $ | 4,982 | $ | (938 | ) | -18.8 | % | |||||||
Deferred |
2,009 | 2,412 | (403 | ) | -16.7 | % | ||||||||||
Ground |
14,553 | 15,896 | (1,343 | ) | -8.4 | % | ||||||||||
Total U.S. Domestic Package |
20,606 | 23,290 | (2,684 | ) | -11.5 | % | ||||||||||
International Package: |
||||||||||||||||
Domestic |
1,478 | 1,803 | (325 | ) | -18.0 | % | ||||||||||
Export |
5,133 | 6,332 | (1,199 | ) | -18.9 | % | ||||||||||
Cargo |
297 | 521 | (224 | ) | -43.0 | % | ||||||||||
Total International Package |
6,908 | 8,656 | (1,748 | ) | -20.2 | % | ||||||||||
Supply Chain & Freight: |
||||||||||||||||
Forwarding and Logistics |
3,630 | 4,817 | (1,187 | ) | -24.6 | % | ||||||||||
Freight |
1,470 | 1,707 | (237 | ) | -13.9 | % | ||||||||||
Other |
306 | 319 | (13 | ) | -4.1 | % | ||||||||||
Total Supply Chain & Freight |
5,406 | 6,843 | (1,437 | ) | -21.0 | % | ||||||||||
Consolidated |
$ | 32,920 | $ | 38,789 | $ | (5,869 | ) | -15.1 | % | |||||||
Consolidated volume (in millions) |
2,757 | 2,877 | (120 | ) | -4.2 | % | ||||||||||
Operating weekdays |
192 | 192 | | |||||||||||||
Average Daily Package Volume (in thousands): |
||||||||||||||||
U.S. Domestic Package: |
||||||||||||||||
Next Day Air |
1,171 | 1,166 | 5 | 0.4 | % | |||||||||||
Deferred |
878 | 882 | (4 | ) | -0.5 | % | ||||||||||
Ground |
10,424 | 11,036 | (612 | ) | -5.5 | % | ||||||||||
Total U.S. Domestic Package |
12,473 | 13,084 | (611 | ) | -4.7 | % | ||||||||||
International Package: |
||||||||||||||||
Domestic |
1,128 | 1,111 | 17 | 1.5 | % | |||||||||||
Export |
757 | 789 | (32 | ) | -4.1 | % | ||||||||||
Total International Package |
1,885 | 1,900 | (15 | ) | -0.8 | % | ||||||||||
Consolidated |
14,358 | 14,984 | (626 | ) | -4.2 | % | ||||||||||
Average Revenue Per Piece: |
||||||||||||||||
U.S. Domestic Package: |
||||||||||||||||
Next Day Air |
$ | 17.99 | $ | 22.25 | $ | (4.26 | ) | -19.1 | % | |||||||
Deferred |
11.92 | 14.24 | (2.32 | ) | -16.3 | % | ||||||||||
Ground |
7.27 | 7.50 | (0.23 | ) | -3.1 | % | ||||||||||
Total U.S. Domestic Package |
8.60 | 9.27 | (0.67 | ) | -7.2 | % | ||||||||||
International Package: |
||||||||||||||||
Domestic |
6.82 | 8.45 | (1.63 | ) | -19.3 | % | ||||||||||
Export |
35.32 | 41.80 | (6.48 | ) | -15.5 | % | ||||||||||
Total International Package |
18.27 | 22.30 | (4.03 | ) | -18.1 | % | ||||||||||
Consolidated |
$ | 9.87 | $ | 10.92 | $ | (1.05 | ) | -9.6 | % | |||||||
Certain prior year amounts have been reclassified to conform to the current year presentation. | 4 |
United Parcel Service, Inc.
Reconciliation of Free Cash Flow
(unaudited)
Reconciliation of Free Cash Flow
(unaudited)
Preliminary | ||||
Year-to-Date | ||||
(amounts in millions) | September 30, 2009 | |||
Net cash from operations |
$ | 4,238 | ||
Capital expenditures |
(1,185 | ) | ||
Proceeds from disposals of PP&E |
40 | |||
Net change in finance receivables |
204 | |||
Other investing activities |
66 | |||
Free cash flow |
$ | 3,363 | ||
Amounts are subject to reclassification.
Certain prior year amounts have been reclassified to conform to the current year presentation. | 5 |