Saturday November 28th, 2015 6:51PM

UPS posts 4Q results hurt by holiday shipping woes

By The Associated Press
ATLANTA (AP) -- UPS earned $1.2 billion in the fourth-quarter but a last-minute surge in holiday shipments drove up costs and hurt results.

United Parcel Service Co. on Thursday reported net income $1.25 per share in the final three months of 2013, compared with adjusted profit of $1.32 per share a year earlier. Revenue rose 2.8 percent to $14.9 billion, short of Wall Street's forecast of $15.2 billion.

The company announced two weeks ago that earnings would fall short of expectations because of higher costs to handle a crush of holiday shipments that crested several days later than the company expected. UPS had to hire an extra 30,000 seasonal workers to handle the rush. It says bad weather in December was also a factor.

For all of 2013, UPS earned $4.37 billion, or $4.61 per share. Adjusted for special items, UPS earned $4.57 per shares, compared with $4.53 per share in 2012.

The company said that it expects full-year 2014 adjusted earnings between $5.05 and $5.30 per share. The 11 percent to 16 percent increase over 2013 adjusted earnings is in line with UPS' long-term growth target of 10 percent to 15 percent. Analysts forecast earnings of $5.29 per share.

UPS was undone in December by a big increase in online shopping and a crush of last-minute orders by shoppers who jumped on offers of free shipping until the final days before Christmas. An unusually late Thanksgiving added to UPS' challenge by shrinking the traditional shopping-and-shipping season by several days.

"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 UPS CEO Scott Davis, in a statement.

The peak delivery day, Dec. 23, brought more than 31 million packages - a 13 percent increase over 2012's busiest day and 7.5 percent more than UPS expected.

UPS had planned to hire 55,000 seasonal workers, the same as in 2012, but had to add another 30,000, a significant unexpected cost.

Analysts expect that for next holiday season, UPS will make changes including higher charges for last-minute deliveries to avoid the same kind of last-minute crush.

UPS shares rose $1.40 to $96.73 in morning trading.
© Copyright 2015
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Judge denies motions to move, delay Tsarnaev trial
Lawyers for Boston Marathon bombing suspect Dzhokhar Tsarnaev asked a federal appeals court Wednesday to overturn a judge's decision to not move his upcoming trial out of state.
10:02PM ( 10 months ago )
High court to adopt electronic filing of cases
The Supreme Court is belatedly developing an electronic filing system similar to those used in courts around the country, Chief Justice John Roberts said Wednesday in his annual end-of-year report.
7:57PM ( 10 months ago )
Storm brings snow, cold to West for New Year's
A blustery winter storm dumped snow and ice across the West on Wednesday, making driving treacherous in the mountains from California to the Rockies and forcing residents and party-goers in some usually sun-soaked cities to bundle up for a frosty New Year's.
5:19PM ( 10 months ago )
U.S. News
State DOT awards $48M contract for NE Ga. road project
The state Department of Transportation has awarded a $47.8 million contract for nine miles of work on a northeast Georgia road.
9:37AM ( 10 months ago )
Business News
Grass fire impacts rush hour traffic on 985
Rush hour traffic on I-985 was slowed by a grass fire Wednesay afternoon with one lane closed while firefighters fought the blaze.
10:19PM ( 10 months ago )
Hall County conviction, sentencing to be reviewed by SCOGA
The State Supreme Court has agreed to hear the appeal of a Hall County man when they reconvene in January.
2:37PM ( 10 months ago )
Maysville man dies from Banks County wreck
The Georgia State Patrol reports that alcohol and/or drugs were factors a single-vehicle wreck that claimed the life of a Maysville man in Banks County Tuesday night.
11:07AM ( 10 months ago )
Local/State News
Standoff at Planned Parenthood ends with suspect's arrest; 3 killed, 9 wounded
COLORADO SPRINGS, Colo. (AP) — A gunman who opened fire inside a Planned Parenthood clinic was arrested Friday after engaging in gun battles with authorities during an hourslong standoff that killed t...
1:13AM ( 17 hours ago )
White House undergoes Thanksgiving Day lockdown after man draped in American flag jumps fence
WASHINGTON (AP) — A man draped in an American flag climbed over the fence at the White House on Thursday, prompting a lockdown as the first family celebrated Thanksgiving.The man was immediately appre...
10:11PM ( 1 day ago )
Obama grants reprieve to turkeys 'Honest' and 'Abe' during White House ceremony
WASHINGTON (AP) — President Barack Obama spared two turkeys named for one of the nation's most admired presidents, continuing a White House tradition that provides a refreshing sense of amusement and...
9:18PM ( 2 days ago )
The Latest: UN Security Council strongly condemns 'horrifying' attack in Mali, urges probe
BAMAKO, Mali (AP) — The latest on the attack on a hotel in the Malian capital of Bamako. (All times local):___4:55 a.m.The U.N. Security Council is condemning "the horrifying terrorist attack" at the...
10:58PM ( 1 week ago )
World leaders vow vigorous response to Paris terror spree, but little indication of next steps
ANTALYA, Turkey (AP) — World leaders vowed a vigorous response to the Islamic State group's terror spree in Paris as they opened a two-day meeting in Turkey on Sunday, with President Barack Obama call...
2:14PM ( 1 week ago )