UPS REPORTS SOLID 4TH-QUARTER, FULL-YEAR RESULTS

UPS REPORTS SOLID 4TH-QUARTER, FULL-YEAR RESULTS    United Parcel Service Tuesday reported record earnings and revenues for its fourth quarter and full year, as strong growth in international volumes and its logistics business helped offset its lagging U.S. domestic business.
   Fourth-quarter net income rose 9.5 percent to $724 million on revenues of $7.9 billion, up 6.1 percent. Operating profit rose 4.8 percent to $1.14 billion.
   Revenues for U.S. domestic package operations rose 4.4 percent to $6.3 billion, while revenues from international package operations rose 6.2 percent to $1.1 billion. Non-package operations revenue rose 35.2 percent to $465 million, reflecting a 58.5-percent gain in UPS Logistics Group revenues.
   Global package delivery volume increased 3.6 percent in the quarter to an average 14.7 million pieces a day. International export volume jumped 19.3 percent while Next Day Air volume in the United States rose 5.1 percent. U.S. domestic volume improved 2.8 percent despite a disappointing holiday shipping season, UPS said.
   For the year, net income rose 20.2 percent to $2.8 billion, excluding one-time investment gains and other non-recurring items. Revenue increased 10.1 percent to $27.1 billion, while operating profit rose 15.5 percent to $4.5 billion.
   U.S. domestic package operations rose 7.6 percent to $24 billion, while revenues from international package operations rose 11.7 percent to $4.2 billion. Non-package operations revenue jumped 58.9 percent to $1.6 billion.
   Consolidated package volume in 2000 averaged 13.6 million pieces each day, up 5.4 percent. International export volume increased 21.5 percent while total average daily international volume climbed 13.8 percent. Total average daily package volume in the United States rose 4.7 percent.
   UPS predicts revenue growth of 8 to 10 percent in 2001 and earnings per share improving 9 to 11 percent, in line with Wall Street expectations.
   “We do expect to grow, and at a rate faster than the domestic package market,” said Scott Davis, chief financial officer. “In addition, we remain bullish on our international and non-package businesses. We expect mid-to-upper-teen growth for our international export volume, and we expect the Logistics Group to achieve a 40-percent increase in revenue in 2001.”