UPS posts record 4th quarter profit
UPS posted record fourth quarter earnings in 2012, hampered slightly by the effects of Hurricane Sandy. The Atlanta-based company’s fourth quarter revenue was up 2.3 percent to a record $14.57 billion. UPS logged a record $1.22 billion net profit for the quarter.
"2012 presented its challenges, most notably weak global trade. Nonetheless, UPS executed well, delivering superior service to customers," said Scott Davis, UPS Chairman and CEO. "Despite modest macro growth expectations for 2013 and uncertainty in the U.S. caused by the lack of progress in Washington, the UPS business model will deliver consistent results, with operating profit growth in all segments."
During the year, UPS delivered more than four billion packages. For the quarter, it delivered 18.8 million pieces per day, an increase of 2.9 percent year over year. Overall consumer spending for holiday shopping fell slightly below expectations, however; UPS still delivered more than 500 million packages, including almost 28 million on its peak day, both new records.
The Freight Forwarding unit experienced revenue improvement on strong tonnage increases in international airfreight. UPS said its operating margin was negatively impacted by an increase in purchased transportation rates on Asia outbound freight during a period of accelerated demand in the market.