UPS’s 4th quarter up 7.5% anticipates “another good year” for 2007

UPSÆs 4th quarter up 7.5% anticipates “another good year” for 2007

UPS's 4th quarter up 7.5% anticipates “another good year” for 2007

UPS reported fourth quarter earnings of $1.3 billion, a 7.5 percent increase over the same period the prior year. Revenue was $12.6 billion, up 5.6 percent.
   The company said it had “solid earnings” in the fourth quarter despite a slowing U.S. economy. Consolidated average daily package volume rose 3.3 percent, or 558,000 additional packages each day. It said pricing remained firm around the globe, with consolidated average revenue per piece up 2 percent
   Total international export volume grew 11.3 percent. The company noted it expanded its international shipping services by providing three time-definite delivery options each day to the world’s 30 largest markets, up from one or two daily options.
   The company said its Supply Chain and Freight segment improved from the third quarter, reflecting the positive impact of cost control measures taken in the fourth quarter. For the year as a whole, revenues in that business were up 33 percent to $8 billion, but the business only had a small operating income for the year of $2 million. The company said UPS Freight’s performance was impacted by the general softening in the less-than-truckload business.
   For the full year of 2006 the company earned $4.2 billion, an 8.6 percent increase over 2005. Revenue was $47.5 billion, up 11.7 percent over 2005.
   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.
   “UPS had a very good year in 2006,” said Mike Eskew, chairman and chief executive officer. “We posted new highs in revenue, operating profit and earnings per share. We finished the year with a well-executed peak season, and strong execution will continue to be critical for us as we move forward in 2007.'
   “We anticipate another good year in our global small package business despite a slowing U.S. economy,” said Scott Davis, UPS vice chairman and chief financial officer. “We also expect our Supply Chain and Freight segment to gain momentum as the year progresses.”
   Davis said he anticipates diluted earnings per share for the full year 2007 to increase 6 percent to 10 percent.
   “We’re encouraged by the opportunities we see for our company around the globe,” Davis added. “We’re operating a healthy business in a vital industry, and we believe our long-term strategy of providing supply chain solutions to our customers is right on target.”