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United Parcel Service Annual Report, Year Ended Dec 31, 2005

Filing Date
Filed March 14, 2006
Period End
December 31, 2005
Security
UPS
In the record · 2016–202610-K1110-Q338-K111

UPS filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 111 current reports (8-K) between 2016 and 2026.

  1. FY2018 annual report10-K · Feb ’19Feb ’19
  2. Leadership change8-K · May ’21May ’21
  3. Leadership change8-K · Jun ’25Jun ’25

01—Abstract

Summary

Summary of the 10-K filed March 14, 2006. Cited figures are marked; the original filing is the authoritative source.

UNITED PARCEL SERVICE INC (UPS) filed its annual report for the fiscal year ending December 31, 2005.

The company demonstrated robust revenue growth, increasing by 16.4% to $42.58 billiona. This growth was driven by strong performance across all segments, particularly International Package operations which saw a 17.2% revenue increase, and the Supply Chain & Freight segment which more than doubled its revenue to $5.99 billion, largely due to acquisitions. Net income also saw a significant increase of 16.1% to $3.87 billion, with diluted earnings per share rising to $3.47.

The company highlighted its competitive strengths including a global reach, advanced technology, and a broad range of services, emphasizing its strategy for continued international expansion and the provision of comprehensive supply chain solutions. UPS also continued its share repurchase program and increased its quarterly dividend, reflecting its financial strength and commitment to shareholder returns. The report indicates a positive outlook for the industry, driven by globalization and the growth of e-commerce.

02—Key points

Key Highlights

  1. Total revenue increased by 16.4% to $42.58 billion in 2005.
  2. Net income grew by 16.1% to $3.87 billion, with diluted EPS of $3.47.
  3. International Package revenue surged by 17.2%, driven by export volume growth in Asia and Europe.
  4. Supply Chain & Freight segment revenue more than doubled (113.1%) to $5.99 billion, mainly due to acquisitions.
  5. The company made significant capital expenditures of $2.19 billion, focusing on aircraft, facilities, and IT infrastructure.
  6. UPS continued its share repurchase program, with $1.338 billion remaining authority at year-end 2005.
  7. The company increased its quarterly dividend per share to $0.38, payable in March 2006.

03—Questions

Frequently Asked Questions

  1. What was UPS's overall financial performance in 2005?

    In 2005, UPS demonstrated strong financial performance with total revenue increasing by 16.4% to $42.58 billion and net income growing by 16.1% to $3.87 billion. Diluted earnings per share also increased to $3.47.

  2. Which segments contributed most to UPS's revenue growth?

    The International Package segment experienced robust growth with a 17.2% revenue increase, largely driven by expanding export volumes in Asia and Europe. The Supply Chain & Freight segment saw exceptional growth, more than doubling its revenue to $5.99 billion, primarily due to strategic acquisitions like Overnite Corp.

  3. What is UPS's strategy for future growth?

    UPS's growth strategy focuses on building on its leadership in the U.S. domestic market, continued international expansion, leveraging its leading-edge technology and e-commerce capabilities, providing comprehensive supply chain solutions, and pursuing strategic acquisitions and global alliances.

  4. How is UPS returning value to shareholders?

    UPS is returning value to shareholders through a combination of increasing its quarterly cash dividend and actively repurchasing its common stock. The company declared a dividend of $0.38 per share and had $1.338 billion in remaining authority under its share repurchase program at the end of 2005.

04—Continue

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