Tuesday, February 1, 2011

United Parcel Service (UPS) reports 2010 results

UPS 747-44AF/SCD (35668/1393) N571UP arrives at Anchorage International Airport (ANC/PANC) on April 30, 2008.
(Photo by Michael Carter)

UPS on Tuesday reported 2010 net income of $3.49 billion, up 62.1% over a $2.15 billion profit in 2009 and surpassing its 2008 net profit of $3 billion. Chairman and CEO Scott Davis signaled that the delivery giant is optimistic about the global economy, particularly in developing regions, citing "opportunities we see in 2011 as UPS continues to expand into emerging markets."

Fourth-quarter net income was $1.12 billion, up 47.8% over a $757 million profit in the 2009 December quarter, on an 8.4% lift in revenue to $13.42 billion. UPS's air-reliant International Package segment posted a fourth-quarter operating profit of $537 million, up 15% from a $467 million operating profit in the prior-year period, as revenue grew 9% to $3.05 billion.

Segment operating margin for the quarter rose 0.9 point to 17.6% "as a result of volume growth, yield improvement and excellent cost management," the company stated. Daily export volume heightened 8.7% during the quarter including a 30% increase in China exports.

"For 2010, international volume increased 13.6% to a record 2.3 million packages per day," UPS stated. "Throughout the year, UPS significantly increased its global network capacity to take advantage of opportunities in the marketplace. For example, airlift out of Asia increased by 40%."

Full-year companywide revenue grew 9.4% to $49.55 billion while expenses climbed 5.2% to $43.67 billion, producing operating income of $5.87 billion, up 54.5% compared to an operating profit of $3.8 billion in 2009. US domestic next-day air revenue lifted 6.9% year-over-year in 2010 to $5.84 billion.

CFO Kurt Kuehn said UPS expects "to exceed previous peak earnings" in 2011, and projects that full-year earnings per share will rise 16%-22% compared to 2010 to $4.12-$4.35.

(Aaron Karp - ATWOnline News)

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