Net income decreased 54% to $414 million and diluted earnings per share declined 52% to $1.61 as a result of the prior period benefiting from a pre-tax gain of $722 million on the sale of J.D. Power. Adjusted net income increased 16% to $442 million and adjusted diluted earnings per share increased 19% to $1.71. The adjustments in the third quarter of 2017 were for deal-related amortization and restructuring. Both net income and adjusted net income benefited from an accounting change associated with the recognition of excess tax benefits from stock-based compensation in 2017. "The underlying environment for our businesses is healthy with an improving global GDP, higher commodity prices, strong equity markets, and modest growth in U.S. bond issuance. With this backdrop, our Company is thriving as all of our business segments contributed solid organic revenue and adjusted operating profit growth during the quarter," said Douglas L. Peterson, President and Chief Executive Officer of S&P Global. "We continue to focus on delivering meaningful revenue growth, launching new products, investing in productivity, and returning capital to shareholders." Click Read More below for additional information.
New Cargo Aircraft Add Fleet Capacity and Flexibility in UPS Global Air Network
UPS (NYSE:UPS) today announced it has ordered 14 new Boeing 747-8 cargo jets to meet increased demand for the company’s air shipping services. UPS’s long term strategy is to increase customers’ access to global markets and air shipments are a major growth opportunity for the company. The 747-8s will enable UPS to begin a cascade of aircraft route reassignments that will add significant air capacity to the company’s busiest lanes, thereby optimizing global air network capacity well beyond the impact of adding new cargo jets.
“UPS is making several strategic capital investments for increased global operating capacity,” said David Abney, UPS chairman and CEO. “These investments will help enable customers to expand their presence in new and existing markets while fueling our profitable growth and attainment of UPS’s long term business objectives.”
The 14 aircraft are to be delivered between 2017 and 2020. The value of the contract, which also contains options for 14 additional jets in the future, was not disclosed. The new jumbo freighters will be added to the company’s existing operating fleet of more than 500 aircraft.
In addition, the 747-8 offers training and operating efficiencies to UPS. Pilots of the company’s existing 747-400 fleet will enjoy a common equipment rating, allowing them to fly both aircraft types. Further, UPS will realize greater economies of scale in maintenance and ground handling by operating the -8 aircraft.
The 747-8 freighters carry 34 shipping containers on its main deck and 14 in its lower compartments. The -8 has a cargo capacity of 307,600 pounds, or approximately 30,000 packages and a range of 4,340 nautical miles. The new -8 aircraft line has a strong industry safety and reliability record.
“We benefit from the youngest fleet in the industry and we are continuously investing for both operating safety and efficiency,” said Brendan Canavan, UPS Airlines president. “This investment supports our customers’ future capacity needs while also reducing fuel use and emissions, which enhances UPS Airlines’ position as an industry leader in sustainability.”