Ups Executive Summary

442 Words2 Pages

The UPS is both a domestic and international company. Currently, the UPS is a leader in the US and the world’s largest package delivery service. The UPS is also the primary provider of the global supply chain management solutions. Each business day UPS delivers for 8 million customers over 220 countries worldwide; therefore, its currency hedging strategy should be solid for its activity and operations. The UPS revenue is segmented into three different units: Domestic Package operations, International Package Operations, and Supply Chain and Freight operations. Based on the 4Q 2016 the Revenue breakdown was a followed: Domestic segment revenue increased by 6.3%, which was driven by e-commerce. Daily shipments increased 5.0%, and operating profit loss was $570 million with an adjusted operating profit of 1.3 billion. …show more content…

The total operating profit for 4Q 2016 was $281 million with $706 millions of adjusted operating profit. Supply Chain and Freight operations revenue also increased by 2.6% with an operating loss of $139 million and adjusted operating profit of $179 million. Overall, in 2016 operations of the company generated a total of $6.5 billion in cash with a capital expenditure of $3 billion. UPS also had an increase of 6.8% per share and paid dividends of $2.8 billion. Their reporting revenue excludes the impact of foreign currency exchange rate charges and hedging activities. This allows them to have a better understanding of their growth trends in their products and actual results. The performance of their international business is evaluated on a currency neutral

More about Ups Executive Summary