United Parcel Service beats EPS estimates for Q4, 2000

United Parcel Service Inc. on Tuesday reported
fourth-quarter net income of $724 million, or 63 cents per share, up from
earnings of $661 million, or 56c per share, in the fourth quarter of 1999.
The
First Call consensus estimate was for earnings of 61c per share.
* * *
For the full year, excluding non-recurring items, UPS reported net
income
of $2.8 billion, or $2.38 per share, beating the First Call consensus
estimate
for earnings of $2.36 per share.
For the quarter, revenues were up 6.1% to $7.9 billion, with revenues
from
domestic package operations up 4.4% to $6.3 million and international
revenues
up 6.2% to $1.1 billion. Revenue from non-package operations was up 35.2%
to
$465 million. Package delivery volume was up 3.6% for the quarter and up
5.4%
for the full year.
The first quarter will be the weakest quarter in 2001 for the company,
said
CFO Scott Davis in a conference call with analysts Tuesday. UPS expects 6%
to
7% revenue growth in the first quarter, and earnings per share slightly
higher
than the 56c per share reported in the first quarter of 2000. The First
Call
consensus estimate is for first-quarter earnings of 59c per share.
For 2001, UPS expects revenue growth of 8% to 10%, and a 9% to 11%
increase
in earnings, provided the economy shows signs of recovering in the second
half,
Davis said.
The company is bullish on the international and non-package businesses,
and
expects growth in the mid to upper teens in international export volume
and a
40% increase in revenue from the Logistics Group.
Merrill Lynch analyst Jeffrey Kauffman reiterated his buy rating on
UPS.
“We continue to believe that UPS is best positioned to grow during the
domestic
economic weakness, given their strong financial position, free cash flow
and
vast product portfolio,” Kauffman said in a research note Tuesday.
Shares of UPS were up 1.05% to 61.44 in morning trading Tuesday. End
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Elaine Grant, BridgeNews, Tel: (314) 468-4199
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