UPS Profit Tops Views
February 02 2016 - 9:50AM
Dow Jones News
United Parcel Service Inc. on Tuesday reported
better-than-expected earnings in the most recent quarter as growth
in international package delivery drove profitability.
Shares of UPS, down 10% over the past three months, rose 3.1% to
$97 in premarket trading as the company also offered upbeat
earnings guidance for the current year.
Chief Financial Officer Richard Peretz said this was the fourth
consecutive quarter UPS exceeded financial expectations.
"While we face uncertain macroeconomic conditions, we are
continuing to invest for profitable growth," he said.
For 2016, UPS expects earnings of $5.70 to $5.90 a share, a 5%
to 9% increase over adjusted 2015 results. Analysts were expecting
$5.73 a share, according to Thomson Reuters.
For the quarter ended Dec. 31, UPS posted earnings of $1.33
billion, or $1.48 a share, up from $453 million, or 49 cents a
share, a year earlier. Adjusted earnings were $1.57 a share.
Fourth-quarter 2015 results included a pension charge of $79
million to recognize lower-than-planned asset returns that were
somewhat offset by a higher discount rate. In the period last year,
the company reported charges of $692 million related to pension and
the transfer of certain health-care liabilities.
Revenue edged up 1% to $16.05 billion. Excluding currency
impacts, revenue would have risen 2.4%.
Analysts had expected earnings of $1.42 a share on revenue of
$16.28 billion.
Total company shipments grew 1.8% to 1.3 billion packages, led
by U.S. air products and European transborder shipments.
In the domestic segment, profit rose an adjusted 18%. Daily
shipments ticked up 2.4%, helped by strong demand from e-commerce
shippers.
Profit in the international segment grew 16% to $624 million,
helped by disciplined pricing, favorable customer and product mix,
and improved operational performance.
In the supply chain and freight segment, operating profit
increased 11% to $199 million. The company's acquisition of Coyote
Logistics, which closed during the previous quarter, more than
offset the impact of softer markets, lower fuel surcharges and
actions to improve revenue quality in the other business units.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
February 02, 2016 09:35 ET (14:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
United Parcel Service (NYSE:UPS)
Historical Stock Chart
From Aug 2024 to Sep 2024
United Parcel Service (NYSE:UPS)
Historical Stock Chart
From Sep 2023 to Sep 2024