Report
Keith Schoonmaker, CFA
EUR 100.00 For Business Accounts Only

UPS Domestic Profitability Drops Despite Solid Demand, International Profitability Thrives

UPS grew its first-quarter top line 10% and expanded EPS 17% via strong contribution from its international and supply chain segments. While its largest segment, domestic, grew revenue 7% from the prior-year period, weather hampered domestic margins via disruptions to parts of the network in 10 of 13 weeks in the quarter. Pension expense, rolling out Saturday service, and work on network projects not yet generating benefits also increased expenses. Weather alone reduced domestic EBIT by about 10...
Underlying
United Parcel Service Inc. Class B

United Parcel Service provides transportation services, primarily domestic and international letter and package delivery. The company reports its operations in three segments: United States Domestic Package, which includes the time-definite delivery of letters, documents and packages throughout the United States; International Package, which includes delivery to several countries and territories worldwide, including shipments wholly outside the United States, as well as shipments with either origin or destination outside the United States; and Supply Chain & Freight, which includes the company's Forwarding, Logistics, Coyote, Marken, UPS Mail Innovations, UPS Freight and other aggregated business units.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Keith Schoonmaker, CFA

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