United Parcel Stock Price, News & Analysis

UPS announced its role in distributing the Pfizer-BioNTech COVID-19 vaccine as part of Operation Warp Speed following its FDA emergency use authorization. The delivery will commence shortly, with UPS trained personnel ensuring efficient logistics to transport the vaccine doses to designated states. Vaccines will originate from Michigan and Wisconsin, then expedited via Next Day Air to hospitals and clinics. UPS emphasizes its commitment to healthcare logistics, highlighting its extensive infrastructure and technology to meet the complex demands of vaccine distribution.

UPS Capital Insurance Agency has announced the introduction of enhanced shipping insurance options for small and mid-size businesses using AscendTMS. This tailored coverage allows users to choose from four deductible options, enabling a customized insurance experience. Key benefits include coverage regardless of carrier fault and a swift claims settlement process. The transportation management system market is projected to grow to $4.9 billion by 2025, prompting UPS Capital to innovate in digital insurance solutions that align with evolving e-commerce needs. A free webinar discussing this service is scheduled for December 2, 2020.

UPS announced enhancements to its Healthcare services, enabling production of up to 1,200 lbs. of dry ice per hour in the U.S. and Canada to support COVID-19 vaccine storage. The company is collaborating with Stirling Ultracold to provide portable freezers that maintain temperatures between -20°C to -80°C. These enhancements address increasing demands for dry ice as logistics providers prepare for potential shortages during vaccine distribution. UPS Healthcare aims to enhance supply chain reliability and agility for healthcare facilities.

On November 23, 2020, Special Olympics Georgia (SOGA) was awarded a generous $90,000 grant from The UPS Foundation. This funding aims to enhance SOGA's volunteer program for its State Games, which support over 26,620 athletes. The grant allows SOGA to recruit more volunteers and improve their experience, which is vital for the organization, given its small full-time staff. UPS also demonstrated ongoing commitment through its employees who volunteer at events, enhancing the overall experience for athletes.

UPS announces the election of Kate Johnson, President of Microsoft US, and Russell Stokes, President & CEO of GE Aviation Services, to its Board of Directors, effective immediately. This decision follows the departure of John Stankey, who leaves to concentrate on his role as CEO of AT&T Inc. Johnson and Stokes are recognized leaders whose expertise is expected to strengthen governance and decision-making at UPS. This change enhances diversity, with women making up 40% of the board and 25% ethnically diverse, reflecting UPS's commitment to inclusive leadership.

The UPS Board of Directors declared a quarterly dividend of $1.01 per share on all outstanding Class A and Class B shares, payable on December 3, 2020, to shareholders of record as of November 13, 2020. This marks over five decades of consistent dividend issuance, with the dividend amount more than quadrupling in the last 20 years. In 2019, UPS reported revenues of $74 billion, providing integrated logistics solutions globally, while maintaining a commitment to environmental stewardship and community support.

UPS reported a 15.9% increase in consolidated revenue, reaching $21.2 billion for Q3 2020. Diluted EPS rose to $2.24, marking an 11.4% growth. Operating profit reached $2.4 billion, an 11.0% increase year-over-year. The company's cash from operations totaled $9.3 billion, with adjusted free cash flow at $5.9 billion. UPS did not provide guidance for future earnings due to uncertainty from the pandemic but noted strong demand from Asia and small to medium businesses.

UPS announced its plan to hire over 100,000 seasonal employees, with a significant recruitment event on October 30, 2020, dubbed 'UPS Brown Friday.' The company is hosting nearly 250 virtual and in-person job fairs across the U.S., aiming to onboard at least 50,000 candidates. Seasonal positions, primarily for package handlers and drivers, often lead to permanent roles, with about 35% of recent hires transitioning to full-time employment. UPS also offers a tuition assistance program, investing nearly $670 million to support employees pursuing education.