UPS reports solid 4th quarter as global package business grows
Led by a strong performance in its international operations, UPS today reported net income of USD1.13 billion and a 10% increase in diluted earnings per share to USD1.04 for the fourth quarter ended Dec. 31, 2006.
For the full year of 2006, revenue rose almost 12%; operating profit increased 8%, and earnings per share climbed 11.2% to USD3.86. The international business reached new heights, reporting more than USD1.7 billion in operating profit. The company set a new record for package volume in 2006, delivering almost 4 billion packages or an average of 15.6 million per day.
Consolidated Results 4Q 2006 4Q 2005
Revenue USD12.6 B USD12.0 B
Operating profit USD1.8 B USD1.7 B
Operating margin 14.3% 14.3%
Average volume per day 17.3 M 16.8 M
Diluted earnings per share USD1.04 USD0.95
During the quarter, UPS announced the expansion of its international shipping portfolio by providing three time-definite delivery options each day to the world’s 30 largest markets, up from one or two daily options. These new delivery services make UPS’s international delivery portfolio the most expansive in the industry and cover more than 80% of the world’s GDP.
The Supply Chain and Freight segment improved from the third quarter, reflecting the positive impact of cost control measures taken in the fourth quarter. UPS Freight’s performance was impacted by the general softening in the Less-Than-Truckload (LTL) environment.
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