UPS has announced fourth-quarter 2019 adjusted earnings per share of $2.11, an 8.8 percent increase over the same period last year.
The company’s results highlight the strong volume growth in the U.S. domestic segment and the impact of successful execution from all segments.
David Abney, UPS chairman and chief executive officer, commented: “Our network improvements from transformation enabled UPS to embrace a surge in demand for air products while at the same time generate productivity improvements and positive operating leverage,”
Abney added: “Looking to 2020, we will continue to adapt to the changing environment, strengthen our network and create new solutions to support our strategic growth initiatives and help our customers grow and compete.”
In the fourth quarter of 2019, the company incurred a non-cash, after-tax mark-to-market (MTM) pension charge of $1.8 billion, an after-tax transformation charge of $39 million, and U.S. Domestic after-tax legal contingency and expense charges of $91 million, predominantly related to the New York cigarette case.
For the total company in 4Q 2019:
- Average daily volume levels exceeded 26.6 million packages, an increase of 7.6 percent, driven by high demand for air services in the U.S.
- Consolidated revenue increased 3.6 percent to $20.6 billion, due to strong average daily volume growth during the peak holiday season.
- Operating profit grew 6.4 percent, and 13.7 percent on an adjusted basis, with margin improvement across all segments.