NY Times
United Parcel Service said Tuesday that its income nearly tripled in the fourth-quarter, helped by more Internet shopping and increased use of premium services like next day shipping.
The company said it earned $757 million, or 75 cents a share, up from $254 million, or 25 cents a share, a year earlier. Revenue fell 2.5 percent, to $12.38 billion, from $12.70 billion.
U.P.S., based in Atlanta, attributed the strong performance to a good holiday shipping season and solid international business. Significant growth in online retail sales on sites like Amazon.com and BestBuy.com helped domestic results.
Also, in November, Manheim, a vehicle auction company, hired U.P.S. to oversee its entire supply chain and shipping software for moving millions of used vehicles each year to the wholesale market.
U.P.S. said its capital spending this year would total about $1.8 billion, below the historical range, although up from $1.6 billion in 2009. The company is also cutting 1,800 management and administrative jobs, less than 1 percent of its global work force, as it repositions itself for a gradual economic recovery with improved technology and fewer employees. The job cuts are meant to streamline the company’s domestic small-package segment, which represents about 60 percent of its annual revenue.
“U.P.S. has emerged from a very difficult year leaner, more focused and better positioned to take advantage of improving economic trends,” the chief executive, D. Scott Davis, told analysts during a conference call.
The company also issued a forecast for 2010 earnings that was consistent with Wall Street expectations.
Stock in U.P.S. rose 23 cents, to $58.62.
In its fourth quarter, U.P.S.’s package volume rose 1.4 percent. During the holiday shipping season, global volume exceeded 22 million packages on eight days. It twice exceeded 24 million packages.
International operating profit jumped 27.6 percent. All regions experienced export volume growth, led by Asia and the United States.
U.P.S., based in Atlanta, attributed the strong performance to a good holiday shipping season and solid international business. Significant growth in online retail sales on sites like Amazon.com and BestBuy.com helped domestic results.
Also, in November, Manheim, a vehicle auction company, hired U.P.S. to oversee its entire supply chain and shipping software for moving millions of used vehicles each year to the wholesale market.
U.P.S. said its capital spending this year would total about $1.8 billion, below the historical range, although up from $1.6 billion in 2009. The company is also cutting 1,800 management and administrative jobs, less than 1 percent of its global work force, as it repositions itself for a gradual economic recovery with improved technology and fewer employees. The job cuts are meant to streamline the company’s domestic small-package segment, which represents about 60 percent of its annual revenue.
“U.P.S. has emerged from a very difficult year leaner, more focused and better positioned to take advantage of improving economic trends,” the chief executive, D. Scott Davis, told analysts during a conference call.
The company also issued a forecast for 2010 earnings that was consistent with Wall Street expectations.
Stock in U.P.S. rose 23 cents, to $58.62.
In its fourth quarter, U.P.S.’s package volume rose 1.4 percent. During the holiday shipping season, global volume exceeded 22 million packages on eight days. It twice exceeded 24 million packages.
International operating profit jumped 27.6 percent. All regions experienced export volume growth, led by Asia and the United States.
