UPS Reports Increased Earnings, Cites Slower Freight Growth

January 27, 2005 11:00 AM, EST

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PS Inc. said its net income for the fourth quarter was in line with its most recent projection, but that it was "disappointed" in its ground volume and would cut costs this year.

UPS was "disappointed with our U.S. ground volume in the fourth quarter," Chief Financial Officer Scott Davis said in a statement.

The company planned to cut costs by $200 million, reduce discretionary spending, increase project reviews and freeze management hiring this year, Davis said in a Thursday morning conference call, Bloomberg reported.

UPS reported earnings of $866 million or 82 cents a share, after it had reduced its earnings expectations Jan. 12 to that range. In last year's fourth quarter it earned $856 million or 70 cents a share.

The parcel carrier reported its income for all of 2004 was $3.3 billion, up 15% from $2.9 billion in 2003.

Total revenues rose 10.2% for the quarter over the previous year, to $9.84 billion, and annual revenue was $36.6 billion, a 9.2% increase from the previous year, UPS said.

UPS is No. 1 on the Transport Topics 100 listing of the largest U.S. and Canadian for-hire carriers.