Paced by record international performance, UPS has reported solid gains in both revenue and net income for the fourth quarter.

For the quarter ended Dec. 31, 2002, revenue totaled $8.26 billion, up 3.3% from the $8 billion reported during the prior-year period. Including non-recurring items, consolidated operating profit improved 13.2% to $1.2 billion and net income increased 133% to $1.5 billion. Diluted earnings per share totaled $1.32 for the quarter.
Adjusted to exclude non-recurring items, consolidated operating profit improved 4.4% to $1.08 billion compared to the $1.03 billion reported in 2001, and net income increased 3.9% to $670 million from $645 million. Earnings per diluted share increased 3.5% to $0.59 versus $0.57 recorded during the period in 2001.
Operating profit for the international segment more than doubled as export revenue climbed 20% compared to the prior year. Revenue and operating profit for the non-package segment increased substantially after excluding non-recurring items.
As expected, the weak American economy continued to impact U.S. domestic package operations, but the 1.3% volume decline during the quarter still reflected growing momentum compared with the prior two quarters.
"While we have not seen signs of an economic rebound in the United States, our international business is showing strong growth and our non-package initiatives are paying off," said Scott Davis, UPS' chief financial officer.
"In the United States, the timing of the economic recovery is definitely the biggest unknown," Davis said. "Outside the U.S., we expect to see continued strong export growth, particularly in Asia and Europe, and an increase in international profitability of 20% or more."