United Parcel Service, Inc. (NYSE:UPS) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 08:30 am ET
We also expect Asia outbound demand and yields to be positive year-over-year, but will continue to moderate versus the second quarter.
For modeling purposes, our Teamster employees will get their annual wage increase in August. And in the third quarter of 2019, we had a $40 million gain on the land sale in the International segment that will not repeat. And in the second half of 2020, US domestic will face difficult year-over-year comps, including the impact of our new hires anticipated to receive full benefits, time in transit and weekend operations expense preceding the full run rate of revenue and other gains from last year that will not repeat.
The economic recovery remains uncertain. We are paying close attention to the consumer financial health, unemployment levels and the continuation of fiscal stimulus programs. Given all these factors, the US domestic margin could be lower in the second half of the year relative to the first half. International Supply Chain and Freight will continue to adapt to market dynamics. Meanwhile, as Carol said, we will focus on controlling what we can control. Among the positive and negative effects ahead of us, we remain confident in our ability to improve US margins on a long-term basis. Our liquidity is very strong. We ended the quarter with more than $8 billion in cash and equivalents on the balance sheet, which is enabling us to invest through this unique environment and navigate the economic uncertainty.
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