Exhibit 99.2
United Parcel Service, Inc.
Selected Financial Data - First Quarter
(unaudited)
 
Three Months Ended
 
 
 
March 31
 
 
2019
2018
Change
% Change
(amounts in millions, except per share data)
 
 
 
 
Statement of Income Data:
 
 
 
 
Revenue:
 
 
 
 
  U.S. Domestic Package
$
10,480

$
10,227

$
253

2.5
 %
  International Package
3,459

3,533

(74
)
(2.1
)%
  Supply Chain & Freight
3,221

3,353

(132
)
(3.9
)%
  Total revenue
17,160

17,113

47

0.3
 %
 
 
 
 
 
Operating expenses:
 
 
 
 
  Compensation and benefits
9,317

9,045

272

3.0
 %
  Other
6,449

6,548

(99
)
(1.5
)%
  Total operating expenses
15,766

15,593

173

1.1
 %
 
 
 
 
 
Operating profit:
 
 
 
 
  U.S. Domestic Package
666

756

(90
)
(11.9
)%
  International Package
528

594

(66
)
(11.1
)%
  Supply Chain & Freight
200

170

30

17.6
 %
  Total operating profit
1,394

1,520

(126
)
(8.3
)%
 
 
 
 
 
Other income (expense):
 
 
 
 
 Other pension income (expense)
191

285

(94
)
(33.0
)%
  Investment income and other
24

9

15

166.7
 %
  Interest expense
(169
)
(153
)
(16
)
10.5
 %
  Total other income (expense)
46

141

(95
)
(67.4
)%
 
 
 
 
 
Income before income taxes
1,440

1,661

(221
)
(13.3
)%
 
 
 
 
 
Income tax expense (benefit)
329

316

13

4.1
 %
 
 
 
 
 
Net income
$
1,111

$
1,345

$
(234
)
(17.4
)%
 
 
 
 
 
Net income as a percentage of revenue
6.5
%
7.9
%
 
 
 
 
 
 
 
Per share amounts:
 
 
 
 
  Basic earnings per share
$
1.28

$
1.55

$
(0.27
)
(17.4
)%
  Diluted earnings per share
$
1.28

$
1.55

$
(0.27
)
(17.4
)%
 
 
 
 
 
Weighted-average shares outstanding:
 
 
 
 
  Basic
866

866

—

0.0
 %
  Diluted
869

870

(1
)
(0.1
)%
 
 
 
 
 
As adjusted income data:
 
 
 
 
Operating profit:
 
 
 
 
  U.S. Domestic Package (1)
$
694

$
756

$
(62
)
(8.2
)%
  International Package (1)
$
612

$
594

$
18

3.0
 %
  Supply Chain & Freight (1)
$
211

$
170

$
41

24.1
 %
       Total operating profit (1)
$
1,517

$
1,520

$
(3
)
(0.2
)%
 
 
 
 
 
Income before income taxes (1)
$
1,563

$
1,661

$
(98
)
(5.9
)%
Net income (2)
$
1,204

$
1,345

$
(141
)
(10.5
)%
 
 
 
 
 
Basic earnings per share (2)
$
1.39

$
1.55

$
(0.16
)
(10.3
)%
Diluted earnings per share (2)
$
1.39

$
1.55

$
(0.16
)
(10.3
)%

(1) 2019 operating profit and consolidated income before income taxes exclude the impact of $123 million of transformation strategy costs, that reflect costs and other employee benefits of $106 million and other costs of $17 million. These costs are allocated between the U.S. Domestic Package segment ($28 million), International Package segment ($84 million) and Supply Chain & Freight segment ($11 million).

(2) 2019 net income and earnings per share amounts exclude the after-tax impact of the adjustments described in (1), which decreased net income by $93 million.
  



Certain prior year amounts have been reclassified to conform to the current year presentation.





United Parcel Service, Inc.
Selected Operating Data - First Quarter
(unaudited)
 
Three Months Ended
 
 
 
March 31
 
 
2019
2018
Change
% Change
 
 
 
 
 
Revenue (in millions):
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
$
1,841

$
1,784

$
57

3.2
 %
   Deferred
1,089

1,069

20

1.9
 %
   Ground
7,550

7,374

176

2.4
 %
      Total U.S. Domestic Package
10,480

10,227

253

2.5
 %
International Package:
 
 
 
 
   Domestic
690

716

(26
)
(3.6
)%
   Export
2,631

2,672

(41
)
(1.5
)%
   Cargo and Other
138

145

(7
)
(4.8
)%
      Total International Package
3,459

3,533

(74
)
(2.1
)%
Supply Chain & Freight:
 
 
 
 
   Forwarding
1,416

1,605

(189
)
(11.8
)%
Logistics
832

782

50

6.4
 %
   Freight
773

777

(4
)
(0.5
)%
   Other
200

189

11

5.8
 %
      Total Supply Chain & Freight
3,221

3,353

(132
)
(3.9
)%
Consolidated
$
17,160

$
17,113

$
47

0.3
 %
 
 
 
 
 
Consolidated volume (in millions)
1,246

1,241

5

0.4
 %
 
 
 
 
 
Operating weekdays
63

64

(1
)
(1.6
)%
 
 
 
 
 
Average Daily Package Volume (in thousands):
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
1,563

1,437

126

8.8
 %
   Deferred
1,384

1,297

87

6.7
 %
   Ground
13,684

13,545

139

1.0
 %
      Total U.S. Domestic Package
16,631

16,279

352

2.2
 %
International Package:
 
 
 
 
   Domestic
1,688

1,670

18

1.1
 %
   Export
1,451

1,446

5

0.3
 %
      Total International Package
3,139

3,116

23

0.7
 %
Consolidated
19,770

19,395

375

1.9
 %
 
 
 
 
 
Average Revenue Per Piece:
 
 
 
 
U.S. Domestic Package:
 
 
 
 
   Next Day Air
$
18.70

$
19.40

$
(0.70
)
(3.6
)%
   Deferred
12.49

12.88

(0.39
)
(3.0
)%
   Ground
8.76

8.51

0.25

2.9
 %
      Total U.S. Domestic Package
10.00

9.82

0.18

1.8
 %
International Package:
 
 
 
 
   Domestic
6.49

6.70

(0.21
)
(3.1
)%
   Export
28.78

28.87

(0.09
)
(0.3
)%
      Total International Package
16.79

16.99

(0.20
)
(1.2
)%
Consolidated
$
11.08

$
10.97

$
0.11

1.0
 %


















Certain prior year amounts have been reclassified to conform to the current year presentation.




United Parcel Service, Inc.
Supplemental Analysis of Currency and UPS Freight


Currency Neutral Revenue Per Piece
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
 
Currency
 
 
 
March 31
 
 
 
Neutral
 
2019
 
2018
 
% Change
 
Currency
 
2019*
 
% Change
Average Revenue Per Piece:
 
 
 
 
 
 
 
 
 
 
 
International Package:
 
 
 
 
 
 
 
 
 
 
 
   Domestic
$
6.49

 
$
6.70

 
(3.1
)%
 
$
0.47

 
$
6.96

 
3.9
 %
   Export
28.78

 
28.87

 
(0.3
)%
 
0.73

 
29.51

 
2.2
 %
      Total International Package
$
16.79

 
$
16.99

 
(1.2
)%
 
$
0.59

 
$
17.38

 
2.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated
$
11.08

 
$
10.97

 
1.0
 %
 
$
0.09

 
$
11.17

 
1.8
 %
*Amounts adjusted for period over period foreign currency exchange rate and hedging differences
 
 
 
 
 
 
 
 
 
 
 
Currency Neutral Revenue
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
 
 
 
Currency
 
 
 
March 31
 
 
 
Neutral
 
2019
 
2018
 
% Change
 
Currency
 
2019*
 
% Change
Revenue (in millions):
 
 
 
 
 
 
 
 
 
 
 
  U.S. Domestic Package
$
10,480

 
$
10,227

 
2.5
 %
 
$
—

 
$
10,480

 
2.5
 %
  International Package
3,459

 
3,533

 
(2.1
)%
 
117

 
3,576

 
1.2
 %
  Supply Chain & Freight
3,221

 
3,353

 
(3.9
)%
 
19

 
3,240

 
(3.4
)%
  Total revenue
$
17,160

 
$
17,113

 
0.3
 %
 
$
136

 
$
17,296

 
1.1
 %
*Amounts adjusted for period over period foreign currency exchange rate and hedging differences
 
 
 
 
 
 
 
 
 
 
 
Currency Neutral Operating Profit
(unaudited)
 
Three Months Ended
 
 
 
 
 
Currency
 
March 31
 
 
 
 
 
Neutral
 
2019*
 
2018
 
% Change
 
Currency
 
2019**
 
% Change
As-Adjusted Operating Profit (in millions):
 
 
 
 
 
 
 
 
 
 
  U.S. Domestic Package
$
694

 
$
756

 
(8.2
)%
 
$
—

 
$
694

 
(8.2
)%
  International Package
612

 
594

 
3.0
 %
 
(4
)
 
608

 
2.4
 %
  Supply Chain & Freight
211

 
170

 
24.1
 %
 
1

 
212

 
24.7
 %
  Total operating profit
$
1,517

 
$
1,520

 
(0.2
)%
 
$
(3
)
 
$
1,514

 
(0.4
)%
* Amounts adjusted for transformation strategy costs
** Amounts adjusted for transformation strategy costs and period over period foreign currency exchange rate and hedging differences


UPS Freight Selected Operating Data -First Quarter
(unaudited)
 
Three Months Ended
 
 
 
March 31
 
 
 
2019
2018
Change
% Change
LTL revenue (in millions)
$
635

$
661

$
(26
)
(3.9
)%
LTL revenue per LTL hundredweight
$
26.10

$
24.76

$
1.34

5.4
 %
 
 
 
 
 
LTL shipments (in thousands)
2,183

2,468

(285
)
(11.5
)%
LTL shipments per day (in thousands)
34.7

38.6

(3.9
)
(10.1
)%
 
 
 
 
 
LTL gross weight hauled (in millions of pounds)
2,433

2,670

(237
)
(8.9
)%
LTL weight per shipment (in pounds)
1,115

1,082

33

3.0
 %
 
 
 
 
 
Operating weekdays
63

64

(1
)
(1.6
)%



Certain prior year have been reclassified to conform to the current year presentation.





United Parcel Service, Inc.
Detail of Other Operating Expenses - First Quarter
(unaudited)
 
Three Months Ended
 
 
 
 
 
March 31
 
 
 
 
 
2019
 
2018
 
Change
 
% Change
(in millions)
 
 
 
 
 
 
 
Repairs and maintenance
$
434

 
$
434

 
$
—

 
0.0
 %
Depreciation and amortization
568

 
596

 
(28
)
 
(4.7
)%
Purchased transportation
2,966

 
3,145

 
(179
)
 
(5.7
)%
Fuel
770

 
750

 
20

 
2.7
 %
Other occupancy
371

 
361

 
10

 
2.8
 %
Other expenses
1,340

 
1,262

 
78

 
6.2
 %
Total other operating expenses
$
6,449

 
$
6,548

 
$
(99
)
 
(1.5
)%


Earnings Per Share and Share Data - First Quarter
(unaudited)

 
Three Months Ended
 
March 31
 
2019
 
2018
(amounts in millions, except per share data)
 
 
 
Numerator:
 
 
 
    Net income
$
1,111

 
$
1,345

 
 
 
 
Denominator:
 
 
 
    Weighted-average shares
860

 
861

    Deferred compensation obligations
1

 
1

    Vested portion of restricted units
5

 
4

Denominator for basic earnings (loss) per share
866

 
866

 
 
 
 
Effect of dilutive securities:
 
 
 
    Restricted units
3

 
4

    Stock options
—

 
—

Denominator for diluted earnings (loss) per share
869

 
870

 
 
 
 
Basic earnings per share
$
1.28

 
$
1.55

 
 
 
 
Diluted earnings per share
$
1.28

 
$
1.55

 
 
 
 
 
 
 
 
Detail of shares outstanding as of March 31, 2019:
 
 
 
 
 
 
 
Class A shares
163

 
 
Class B shares
697

 
 
    Total shares outstanding
860

 
 

 














Certain prior year amounts have been reclassified to conform to the current year presentation.





United Parcel Service, Inc.
Consolidated Balance Sheets - March 31, 2019 and December 31, 2018
(unaudited)

 
March 31, 2019
 
December 31, 2018
(amounts in millions)
 
 
 
 
 
 
 
ASSETS
 
 
 
Current Assets:
 
 
 
Cash and marketable securities
$
5,111

 
$
5,035

Other current assets
9,793

 
11,175

Total Current Assets
14,904

 
16,210

Property, Plant and Equipment
55,365

 
54,488

Less accumulated depreciation and amortization
28,118

 
27,912

 
27,247

 
26,576

Other Assets
9,910

 
7,230

 
$
52,061

 
$
50,016

 
 
 
 
 
 
 
 
LIABILITIES AND SHAREOWNERS' EQUITY
 
 
 
Current Liabilities
$
13,209

 
$
14,087

Long-Term Debt
20,377

 
19,931

Pension and Postretirement Benefit Obligations
8,270

 
8,347

Deferred Taxes, Credits and Other Liabilities
6,720

 
4,614

Shareowners' Equity
3,485

 
3,037

 
$
52,061

 
$
50,016


Amounts are subject to reclassification.

United Parcel Service, Inc.
Selected Cash Flow Data
(unaudited)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash
 
 
Preliminary
 
 
Year-to-Date
(amounts in millions)
 
March 31
Cash flows from operating activities
 
$
2,277

Cash flows used in investing activities
 
(1,416
)
Cash flows used in financing activities
 
(695
)
 
 
 
Effect of exchange rate changes on cash, cash equivalents and restricted cash
 
9

    Net increase in cash, cash equivalents and restricted cash
 
$
175

 
 
 
Reconciliation of Adjusted Capital Expenditures and Free Cash Flow (non-GAAP measures)
 
 
Preliminary
 
 
Year-to-Date
(amounts in millions)
 
March 31
Cash flows from operating activities
 
$
2,277

Capital expenditures
 
(1,514
)
Principal repayments of capital lease obligations
 
(4
)
Adjusted Capital Expenditures (non-GAAP measure)
 
$
(1,518
)
Proceed from disposal of PP&E
 
4

Net change in finance receivables
 
10

Other investing activities
 
(16
)
     Adjusted Free cash flow (non-GAAP measure)
 
$
757



Amounts are subject to reclassification.


Certain prior year amounts have been reclassified to conform to the current year presentation.





United Parcel Service, Inc.
Aircraft Fleet - as of March 31, 2019
(unaudited)

Description
Owned and Capital Leases
Leases & Charters from Others
On Order
Under Option
Operating:
 
 
 
 
Boeing 757-200
75

—

—

—

Boeing 767-200
—

2

—

—

Boeing 767-300
59

—

13

—

Boeing 767-300BCF
3

—

—

—

Airbus A300-600
52

—

—

—

Boeing MD-11
37

5

—

—

Boeing 747-400F
11

—

—

—

Boeing 747-400BCF
2

—

—

—

Boeing 747-8F
10

—

18

—

Other
—

291

—

—

 
 
 
 
 
          Total
249

298

31

—