UPS 2013 Profit Leaps to $4.4 Billion
Trucking, parcel and logistics giant UPS increased profit in the final quarter of the year and for all of 2013.


Trucking, parcel and logistics giant UPS increased profit in the final quarter of the year and for all of 2013.
It earned $1.2 billion or $1.25 per share in the final three months of last year, compared to a loss of $1.7 billion or $1.83 per share a year earlier. The 2012 quarterly loss was attributed to a $3 billion pension expense. When it’s removed the performance during the final quarter of 2012 was a profit of $1.3 billion or $1.32 per share.
Revenue during the period increased to $15 billion compared to $14.6 billion a year earlier.
For 2013 profit was $4.4 billion or $4.61 a share compared with $807 million or 83 cents a year earlier, while revenue was $55.4 billion compared to $54.1 billion.
Average daily package volume increased 6%, as total deliveries in December surged 20%, according to the company. Significantly higher than predicted volume and inclement weather contributed to excess operating costs in the U.S., negatively affecting results, the company said.
"The increased volume put a strain on our network, causing delays. In response, UPS deployed additional people and equipment, placing a greater emphasis on service than cost," said Scott Davis, UPS chairman and CEO. "UPS will make the necessary investments and operational improvements to ensure we meet the needs of the marketplace."
UPS delivered 20 million packages per day during the fourth quarter. Total shipments in 2013 increased to 4.3 billion, a 3.9% gain over 2012.
Revenue in the company’s supply chain and freight segment fell 5.8% to $2.3 billion, due to declines in the freight forwarding unit. Operating profit was flat compared to 2012 adjusted results, as improvements in distribution offset declines in forwarding and UPS Freight.
UPS Freight LTL revenue increased 2.3% over the prior year driven by LTL tonnage and pricing improvements.
More details are on the UPS website.
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