MAAT INDEX

CLAIM #60147 · United Parcel Service Inc (UPS) · 2023Q3 earnings call · Oct 26, 2023 · due Dec 31, 2023

To get to the low end of the guide, it would require about $800 million in profit.

Brian O. Newman · CFO

PENDING
graded after results covering Dec 31, 2023 are reported

In context

I think it implies a pretty meaningful step-up in operating profit, and we understand that, you know, I'm guessing ADV probably has a significant piece to do with that improvement in the operating profit for how low it was in the third quarter, but maybe you could help us bridge from how we're going to get from the third quarter, which, obviously, was quite challenged to what is a significant improvement sequentially. In that context, maybe if you could give us with the help of with what October ADV looks like on the domestic side. I think it's a very important number, so kind of curious if you can help us with that too. Brian Newman: Sure, happy to, Chris. Good morning. So, if you look at the bridge, I'll take the low end from -- so Q3, we put -- posted $665 million in operating profit. To get to the low end of the guide, it would require about $800 million in profit. The two biggest drivers of that are volume and revenue quality. The productivity that the teams are generating, Nando in the US, is offsetting the labor contract step-up because you realize we have three months in the third and fourth quarter, and we had two months of the new labor contract in the second. Your question on volume, as we think about volume and revenue quality, those two alone provide a majority of the 800 step up, but if you think about where we were in August, and where we are in October, the momentum is increasing. We had a low watermark as I mentioned in the prepared remarks, down 15% in terms of ADV volume in August. That translates to around 16 million pieces from an ADV perspective. That's actually, in October, we're seeing 19 million pieces, so we've seen that step-u

Verify independently

SEC filings for UPS · Claim quote is verbatim from the 2023Q3 earnings call.