For the U.S. Domestic segment in 4Q 2018:
• Revenue increased $742 million or 6.3% over 4Q 2017, with growth across all products.
• Premium Next Day Air revenue grew more than 10%, with volume growth of 7.8% as customers selected faster delivery options.
• Revenue per piece increased 4.8% on expanded base rates and positive product and customer mix.
• The company successfully opened 14 major facilities in the U.S. during the quarter, providing higher efficiency and record on-time deliveries. For the full year, UPS opened 22 new facilities worldwide.
“Our International segment produced record results highlighted by double-digit profitability in Europe,” said Abney. “Our broad portfolio, diverse revenue base and flexible network help buffer the impacts of global economic softening. These strengths also position UPS to help customers navigate the current complexities of global trade.”
For the International segment in 4Q 2018:
• Revenue expanded 2.9% with growth across all regions; currency-neutral revenue up 5.4%.
• Revenue per piece increased 1.7%; currency-neutral revenue per piece grew 4.2%, with international domestic products up 7.8% and export products up 3.6%.
• Operating profit grew 6.3%; adjusted currency-neutral operating profit increased 9.8% to $807 million, driven by growth, revenue yields and disciplined cost control.
• Operating margin expanded 60 basis points** (bps) to 20.4% on a reported basis and 80 bps to 20.6% on a currency-neutral basis, demonstrating improved operating leverage.
The Supply Chain and Freight business remains strong. Fourth quarter segment profitability was reduced by about $60 million as a result of the UPS Freight contract ratification process. Profitability for the other business units was positive, led by gains in Forwarding. Revenue-quality improvements and a disciplined focus on cost containment further contributed to the positive results.
Revenue $3,444 M $3,421 M
Operating profit $224 M For the Supply Chain and Freight segment in 4Q 2018:
• The business units demonstrated continued growth as the result of greater alignment with small and medium-sized customers.
• Coyote, brokerage and international air and ocean freight made significant contributions to operating profit within Forwarding, demonstrating value to customers across the world.
• Logistics revenue increased almost 7% from growth in the Healthcare, Aerospace, Retail and Manufacturing sectors.
• UPS Freight increased revenue per LTL (less-than-truckload) hundredweight by 6.9%, with its continued focus on revenue quality.
Full-year 2018 Consolidated Results
• Total revenue increased 7.9% to $71.9 billion on shipment growth; revenue-yield expansion of 4.3% surpassed 2017 yield by 200 basis points.
• Full-year 2018 diluted EPS totaled $5.51; adjusted diluted EPS was $7.24.
• Adjusted diluted EPS excludes the impact of the MTM pension charge and Transformation costs.
• Paid dividends of $3.2 billion, an increase of 10% per share over the prior year.
• Repurchased 8.9 million shares for approximately $1 billion.