Record global volume boosts UPS’ 4th quarter profits 21%

Record global volume boosts UPS’ 4th quarter profits 21%    UPS said Thursday that record global volume in the fourth quarter, representing an average 16.8 million packages delivered each day, helped its net income jump 21.1 percent to $1.05 billion from $866 million in the fourth-quarter 2004.
   Operating income was up 42.1 percent to $1.71 billion, compared to $1.2 billion in the same quarter 2004.
   UPS’ total fourth quarter revenue improved 21.5 percent to $11.95 billion from $9.84 billion after the company’s core U.S. domestic ground transportation business reported a 5.9 percent volume increase to an average 12.3 million daily packages.
   Domestic package revenue went up 8.9 percent to $7.82 billion, of which ground package revenue was $5.13 billion up 10.8 percent.
   International package revenue for the latest quarter grew 18.3 percent to $2.22 billion with volumes rising 25.1 percent to 1.8 million a day.
   Revenue for UPS Supply Chain Solutions, the logistics arm of the group, soared 146 percent to $1.91 billion in the latest quarter, “reflecting the positive impacts of both the Menlo Worldwide Forwarding and Overnite acquisitions.”
   For the full year net income totaled $3.87 billion, up 21.1 percent compared to $3.3 billion in 2004. Operating profit rose 23.1 percent in 2005 to $6.14 billion from $4.98 billion. UPS’s consolidated annual revenue was $42.58 billion, a 16.4 percent improvement over $36.58 billion in 2004.
   UPS said it delivered about 3.7 billion packages in 2005, up 4.3 percent.
   “UPS’s performance in 2005 was exceptional, including a well-executed peak season,” said Mike Eskew, UPS’ chairman and chief executive officer.
   “The year was one of significant growth, margin expansion and excellent cash flow,” said Scott Davis, chief financial officer at UPS. “We’re optimistic about 2006 and confident in our ability to continue producing the type of consistent earnings growth for which we’re known. We will continue to invest in all three of our businesses and execute strategies in each segment that will enable us to capitalize on the growth in global commerce.”
   For the full year of 2006, UPS expects of an increase in diluted earnings per share of 11 to 16 percent.