10-KPeriod: FY2015

UNITED PARCEL SERVICE INC Annual Report, Year Ended Dec 31, 2015

Filed February 25, 2016For Securities:UPS

Summary

United Parcel Service, Inc. (UPS) reported strong financial performance in its 2015 10-K filing. The company demonstrated resilience amidst a mixed global economic environment, with total revenue reaching $58.4 billion. Key drivers of growth included the expanding e-commerce sector and strategic acquisitions aimed at broadening its service portfolio. UPS continued to invest heavily in technology and network enhancements to improve operational efficiency and customer service, positioning itself for sustained growth in the evolving logistics landscape. From an investor's perspective, the report highlights UPS's commitment to shareowner returns through consistent dividend increases and share repurchases. The company's financial strength, coupled with strategic investments in technology like ORION and the acquisition of Coyote Logistics, underscores its focus on long-term value creation. While facing competitive pressures and economic uncertainties, UPS's diversified business segments and global network provide a solid foundation for future performance.

Financial Highlights

53 data points
Beta

Revenue

$58.36B

Net Income

$4.84B

8.3% Net Margin

EPS (Diluted)

$5.35

Total Assets

$38.31B

Cash & Equivalents

$2.73B

Free Cash Flow

$5.05B

Financial Statements
Beta
Revenue$58.36B
Operating Expenses$50.70B
Operating Income$7.67B
Interest Expense$341.00M
Net Income$4.84B
EPS (Basic)$5.38
EPS (Diluted)$5.35
Shares Outstanding (Basic)901.00M
Shares Outstanding (Diluted)906.00M

Key Highlights

  • 1Total revenue reached $58.4 billion in 2015, showing modest growth over the prior year, driven by strong e-commerce and strategic expansion.
  • 2Acquisition of Coyote Logistics significantly expanded UPS's truckload freight brokerage capabilities, integrating it into the Supply Chain & Freight segment.
  • 3Continued investment in technology, including the accelerated deployment of the ORION routing system and facility automation, aimed at improving operational efficiency and reducing costs.
  • 4The company reported a strong operating profit of $7.67 billion, a significant increase from the previous year, with an operating margin of 13.1%.
  • 5UPS continues to prioritize shareowner returns, increasing its quarterly dividend by nearly 7% and planning approximately $2.7 billion in share repurchases for 2016.
  • 6The International Package segment saw a focus on expanding service coverage and transit time improvements, particularly in Europe and Asia, to capitalize on global trade growth.
  • 7The U.S. Domestic Package segment benefited from growth in business-to-consumer shipments and e-commerce, with strategic investments made to enhance peak season operations.

Frequently Asked Questions

In fiscal year 2015, United Parcel Service, Inc. reported total revenue of $58.4 billion.

In 2015, UPS acquired Coyote Logistics, a truckload freight brokerage company, for $1.829 billion. This acquisition expanded its Supply Chain & Freight segment by adding significant truckload brokerage and transportation management services, with anticipated synergies in operations and cross-selling.

UPS continued its focus on technology and network enhancements, notably accelerating the deployment of its ORION (On Road Integrated Optimization and Navigation) system across its fleet to optimize delivery routes. Investments were also made in facility automation and technology upgrades to improve sorting and delivery efficiency.

UPS demonstrates its commitment to shareholders through a consistent dividend policy and share repurchase programs. In February 2016, the company increased its quarterly dividend by nearly 7%, and it anticipates repurchasing approximately $2.7 billion of its shares in 2016.