UPS’ 4Q Income Improves
UPS Inc. said its fourth-quarter profit about triple that of a year ago, rising to $757 million, or 75 cents per share.
A strong holiday shipping season and greater international business contributed to the profit, which was from $254 million, or 25 cents per share, a year ago.
Adjusted fourth-quarter 2008 earnings were 83 cents per share.
UPS last month boosted its quarterly forecast to 73 to 75 cents per share, from 58 to 65 cents per share. (Click here for previous coverage.)
Revenue slipped 2.5% to $12.4 billion, and the company said its full-year 2010 net income will be $2.70 to $3.05 per share.
Its supply chain and freight unit’s fourth-quarter revenue slipped 1.8% to $2.034 billion, while less-than-truckload UPS Freight’s revenue fell 2.3% to $473 million.
UPS Freight “experienced a difficult fourth quarter,” with revenue per hundredweight increasing but shipments flat and tonnage declined as the unit posted an operating loss “due to the extremely competitive pricing environment in the LTL business,” UPS said.
Domestic package revenue declined 1.9% to $14.9 billion, while international package revenue jumped 11.8% to $2.4 billion.
Full-year 2009 net income fell 28.3% to $2.15 billion, or $2.31 per share, from $3 billion, or $2.94 billion. Revenue dropped 12% to $45.3 billion.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
