UPS revealed its first-quarter 2022 consolidated revenue of USD24.4 billion, a 6.4% increase over the first quarter of 2021. Consolidated operating profit was USD3.3 billion, up 17.6% compared to the first quarter of 2021, and up 12.1% on an adjusted basis.
Diluted earnings per share were USD3.03 for the quarter; adjusted diluted earnings per share of USD3.05 were 10.1% above the same period in 2021.
For the first quarter of 2022, generally accepted accounting principles (GAAP) results include a net charge of USD19 million, or USD0.02 per diluted share, comprised of after-tax transformation and other charges of USD43 million offset by an after-tax gain of USD24 million resulting from the curtailment of benefits in a Canadian retirement plan.
“I want to thank all UPSers for their outstanding efforts during a challenging first quarter to serve the needs of our customers,” said Carol Tomé, UPS chief executive officer.
“The agility of our network and the continued execution of our strategy delivered another quarter of strong financial performance, putting us on our way to achieving our 2022 consolidated financial targets.”
The company provides guidance on an adjusted (non-GAAP) basis because it is not possible to predict or provide a reconciliation reflecting the impact of future pension mark-to-market adjustments or other unanticipated events, which would be included in reported (GAAP) results and could be material.
For 2022, UPS reaffirms its full-year financial targets:
- Consolidated revenue of about USD102 billion
- Consolidated adjusted operating margin of approximately 13.7%
- Adjusted return on invested capital above 30%
- Capital expenditures of 5.4% of revenue, or approximately USD5.5 billion
- Dividend payments, subject to board approval, of about USD5.2 billion
- Finally, UPS is announcing its plans to double the amount of share repurchases for 2022, taking the target to USD2 billion for the year.