UPS Q4 sales rise but net earnings fall
UPS has said that fourth-quarter sales improved from last year as the recovering economy led to greater demand for the shipping giant’s services.
Shares of UPS closed up 7 cents at USD72.51.
Fourth-quarter earnings totaled USD856 million, or 75 cents per share, down from its year-ago profit of USD1.5 billion, or USD1.32 per share. The year-ago fourth quarter included a net gain of USD832 million as a favorable settlement with the IRS offset a restructuring charge. Excluding items, UPS earned USD670 million, or 59 cents per share, in last year’s equivalent period.
Excluding a gain of USD18 million related to redemption of long-term debt, the Atlanta package delivery firm earned USD799 million, or 70 cents per share in the latest quarter.
According to an average analyst estimate compiled by Thomson First Call, the company’s per-share profit forecast was for 69 cents and revenue was expected at USD8.84 billion.
Sales rose to USD8.93 billion in the quarter, up 8.2 percent from USD8.26 billion.
In November, UPS raised rates on most of its domestic shipping by a smaller margin than expected.
The company forecasts first-quarter per-share profit of 58 cents to 62 cents, while the consensus estimate is for 62 cents.
The company faces competition from FedEx , which also recently acquired Kinko’s for $2.4 billion.
