UPS Q4 Profits More Than Double
United Parcel Service Inc (NYSE: UPS) reported a year-over-year increase in its fourth quarter earnings, aided by a significant improvement in margins and the absence of charges. Despite the fall in revenues due to continued weakness in the US, earnings more than doubled.
The shipping company also warned that the first quarter will be the most challenging in the year, with profitability expected to be only slightly better than last year. Analysts were expecting a 13% per-share increase.
The Atlanta-based company said that it earned $757 million, or $0.76 a share, up from $254 million, or $0.25 a share, in the year-ago quarter. Meanwhile, UPS’ sales slipped to $12.5 billion from $12.7 billion. For the full year, UPS projected earnings of $2.70 to $3.05 a share. Analysts, on an average, expected earnings of $0.71 a share on sales of $12.2 billion.
Chairman and CEO Scott Davis said that UPS’ results improved by “leveraging network changes implemented throughout the year and executing flawlessly during the peak holiday shipping period, which was stronger than we had anticipated.”
The company projects its earnings for the year at $2.70-$3.05 a share. However, the company has warned that the first quarter will be the most challenging, with profitability likely to be only slightly better than the previous year. Wall Street analysts expect earnings of $2.81 a share.
UPS gained 0.68% to trade at $58.76 at 10:15 am.
