United Parcel Service (UPS) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

August 8, 2023 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good morning. My name is Stephen, and I will be your facilitator today. I would like to welcome everyone to the UPS Investor Relations Second Quarter 2023 Earnings Conference Call. [Operator Instructions]. It is now my pleasure to turn the floor over to your host, Mr. Ken Cook, Investor Relations Officer. Sir, the floor is yours.

Ken Cook

Good morning, and welcome to the UPS Second Quarter 2023 Earnings Call. Joining me today are Carol Tome, our CEO; Brian Newman, our CFO; and a few additional members of our executive leadership team.

Before we begin, I want to remind you that some of the comments we'll make today are forward-looking statements within the federal securities laws and address our expectations for the future performance or operating results of our company. These statements are subject to risks and uncertainties, which are described in our 2022 Form 10-K and other reports we filed with or furnished to the Securities and Exchange Commission. These reports, when filed, are available on the UPS Investor Relations website and from the SEC. Unless stated otherwise, our discussion refers to adjusted results.

For the second quarter of 2023, GAAP results include after-tax transformation and other charges of $106 million or $0.12 per diluted share. A reconciliation to GAAP financial results is available on the UPS Investor Relations website, along with the webcast of today's call. Following our prepared remarks, we will take questions from those joining us via the teleconference. [Operator Instructions].

And now I'll turn the call over to Carol.

Carol Tomé

Thank you, Ken, and good morning.

Let me begin by commenting on our agreement with the Teamsters. We believe this contract is a win-win-win. Together, we reached agreements on the issues that were important to Teamster leadership, to our employees and to UPS. We have the best people, and our new contract continues to reward our employees with the best pay and benefits in our industry. I'll share some highlights of the new contract in a moment.

The second quarter was challenging, and I'd like to recognize the more than 500,000 UPSers around the world for their hard work and effort and for doing what they do better than anyone, and that's to deliver industry-leading service. I'd also like to give a special shout-out to our sales people for their dedication to our customers. And most importantly, I want to thank our customers for putting their trust and their business with us during our labor negotiations. And for those customers who divert it, we look forward to bringing you back to our network.