UPS said third-quarter revenue rose to $22.9 billion

UPS said third-quarter consolidated revenue was $22.9 billion, up 6.7%, with growth in each segment. The company’s release on Oct. 27 says consolidated operating profit was $1.7 billion and the operating margin was 7.6%. Non-GAAP adjusted operating profit was $2.1 billion and the adjusted margin was 9.0%. Diluted earnings were $1.37 a share. Adjusted diluted earnings were $1.69. Those adjusted figures are UPS’s.

The company said GAAP results included a net charge of $279 million, or $0.32 a diluted share. It said that charge was made up of $130 million of after-tax transformation-strategy costs and a $182 million charge for a goodwill impairment in Supply Chain Solutions, partly offset by a $33 million gain on the sale of MD-11 assets. That is UPS’s description of the items.

U.S. Domestic revenue was $14,865 million, against $14,220 million a year earlier. UPS said that revenue rose 4.5% on a 6.1% increase in revenue per piece, and that the operating margin was 6.1% while the adjusted margin was 7.0%. International revenue was $5,007 million, against $4,673 million. The company said that revenue rose 7.1% on a 15.0% increase in revenue per piece, and that the margin was 14.9% on both a GAAP and an adjusted basis. Supply Chain Solutions revenue was $2,981 million, against $2,522 million, which UPS said was an 18.2% increase, tied mainly to forwarding and logistics, including healthcare. It said that segment’s operating margin was 3.1% and its adjusted margin was 9.2%.

Chief executive Carol Tomé said in the release that the quarter showed stronger fundamentals from what she called premium growth and a more efficient network, and that the company was raising full-year guidance. UPS said fourth-quarter consolidated revenue is expected to be about $25.7 billion, with adjusted operating profit of about $3.3 billion. For the full year it now expects revenue of about $92.6 billion, adjusted operating profit of about $8.75 billion, adjusted diluted earnings of about $7.28 a share, and adjusted free cash flow of about $6.1 billion. It said it still expects capital spending of about $3.0 billion, dividend payments of around $5.4 billion subject to board approval, an effective tax rate of about 23%, and pension contributions of $1.3 billion. The release says the company gives some of that guidance only on an adjusted basis because it cannot predict items that would be in GAAP results. Those ranges are UPS’s outlook. They may not be met.

Reuters reported that the shares rose 5.8% on Tuesday after the forecasts were raised. A change in the share price is not a judgment on whether the shares should be owned.