UPS reported record revenues and earnings for the fourth quarter and the year, despite slowing U.S. business.

The quarter was highlighted by strong volume growth in the company's international operations, significant revenue growth in its logistics business and a slowing U.S. domestic business.
For the fourth quarter of 2000, revenues totaled $7.9 billion, up 6.1% compared to the $7.4 billion reported for the same period a year earlier. Consolidated operating profits rose 4.8% during the period to $1.14 billion. Net income rose 9.5% to $724 million, compared to $661 million a year earlier, aided in part by a lower effective tax rate for 2000 that added $34 million to the quarter's net income.
"Given the challenges of the U.S. economy, we're pleased with the company's growth and financial performance. Most importantly, we believe our overall strategy has positioned us extremely well for the future," said Jim Kelly, UPS chairman and CEO.
The fourth quarter results completed a strong year for the company, with total annual revenues for 2000 reaching $29.8 billion, up 10.1% compared to the $27.1 billion reported for calendar 1999. Total operating profit in 2000 rose 15.5% to $4.5 billion, compared to $3.9 billion in 1999. Adjusted net income rose 20.2% in 2000 to $2.8 billion, compared to $2.3 billion in 1999.
"The consensus among economic experts seems to be that growth in the first half of 2001 will be slow -- in the area of 1-to-2%, picking up somewhat in the second half of the year to 3-to-3.5%," said Chief Financial Officer Scott Davis. "In light of this expected slowing, we're expecting revenue growth between 8% and 10%. We also anticipate earnings per share will increase between 9% and 11%, consistent with current Wall Street expectations. Achievement of these goals will depend on an improving second-half economy."