International Improvement Drives UPS 4th Quarter

UPS announced diluted earnings per share of 75 cents for the fourth quarter of 2009, above the company's original guidance of 58 to 65 cents a share,

due in large measure to strong performance by its international segment. That segment saw volume growth, a substantial gain in operating profit and improvement to a 16.7 percent operating margin.

"The company demonstrated its ability to manage effectively in changing market conditions," UPS Chairman and CEO Scott Davis. "UPS has emerged from the worst recession in decades leaner, more focused and better positioned to take advantage of increased global trade."

The company reported revenues of $12.38 billion during the fourth quarter, compared with $12.7 billion in the year-ago quarter. Operating profit was $1.26 billion, a dramatic improvement over the fourth quarter of 2008, when operating profit was $803 million.

"UPS ended 2009 on a high note by leveraging network changes implemented throughout the year and executing flawlessly during the peak holiday shipping period, which was stronger than we had anticipated," said Davis.

International operating profit jumped 18.8 percent on an adjusted basis and 27.6 percent on a reported basis on revenue growth of 5.8 percent.



While international profited, UPS Freight had a tougher quarter, with an operating loss due to pricing pressures in the less-than-truckload business. In addition, UPS said shipments were flat and tonnage dropped.

"Economic forecasts indicate gradual improvement as 2010 unfolds," said Kurt Kuehn, UPS's chief financial officer. "The first quarter will be the most challenging of the year for UPS with profitability only slightly better than last year."