clear
Tuesday June 30th, 2015 8:48AM

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 AccessWDUN.com
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 This material may not be published, broadcast, rewritten, or redistributed without permission.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 ( 5 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 ( 5 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 ( 5 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 ( 5 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 ( 5 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 ( 5 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 ( 5 months ago )
Local/State News
Obama proposal would make 5 million more eligible for OT
WASHINGTON (AP) — Salaried workers who earn nearly $1,000 per week would become eligible for overtime pay under a proposal President Barack Obama unveiled Monday, lamenting that too many Americans are...
11:07PM ( 9 hours ago )
A world apart: 2 women with birthdates in 1800s still alive
When Susannah Mushatt Jones and Emma Morano were born in 1899, there was not yet world war or penicillin, and electricity was still considered a marvel. The women are believed to be the last two in th...
8:47PM ( 12 hours ago )
Supreme Court upholds use of controversial execution drug
WASHINGTON (AP) — Trading sharp words, a deeply divided Supreme Court upheld the use of a controversial drug in lethal-injection executions Monday, even as two dissenting justices said for the first t...
5:49PM ( 14 hours ago )
2nd escaped murderer is shot, captured after other killed
MALONE, N.Y. (AP) — A three-week manhunt that began when two convicted murderers staged a brazen prison break involving stolen power tools and hacksaw blades hidden in frozen hamburger meat ended Sund...
11:43PM ( 1 day ago )
SpaceX rocket destroyed on way to space station, cargo lost
An unmanned SpaceX rocket carrying supplies to the International Space Station broke apart Sunday shortly after liftoff. It was a severe blow to NASA, the third cargo mission to fail in eight months.T...
5:28PM ( 1 day ago )