Subscribe to our free, weekly email newsletter!


UPS reduces fourth quarter earnings guidance

By Jeff Berman, Group News Editor
January 17, 2014

Citing a compressed peak season and what it described as an unprecedented level of online shopping that included a surge of last-minute deliveries, UPS reduced its fourth quarter earnings guidance today.

UPS said it is calling for fourth quarter 2013 earnings per share of $1.25, with full-year 2013 earnings per share expected to come in at $4.57, which is below its previous guidance of $4.65 to $4.85.

The company saw a fair amount of customer angst in regards to late deliveries for orders made online that did not reach their destinations in time although industry estimates suggest it was not a high percent of its total package volumes.

The company’s peak day, December 23, saw UPS deliver more than 31 million packages, which stands as its highest day ever, and 13 percent higher than its 2012 peak day. Company officials said that this year’s peak delivery day was six days later than expected and topped its forecast for volume by 7.5 percent.

Jerry Hempstead, president of parcel consultancy Hempstead Consulting, said that this earnings guidance is due in part to the method and means UPS took to keep its network moving that was the result of the storm that hit Texas in mid-December, explaining that multiple UPS hubs in Texas were affected.

“The other thing that goes out the window is overtime pay so all constraints had to be tossed out the window as late arrivals and high volumes took its toll,” he said. “In the end it’s weather and [the situation is] non recurring. I think UPS did an outstanding job in its attempt to maintain service through some adverse conditions.”

The company’s fourth quarter earnings announcement is on January 30.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Now that the deal, which had to clear several regulatory hurdles in multiple countries, is official, FedEx executives were able to speak a little bit more freely, albeit being somewhat guarded in regards to certain integration specifics at the same time.

As the July 1st date for complete compliance looms, shippers are seeking help to cope with the mandatory changes instituted by the International Maritime Organization (IMO) to the Safety of Life at Sea Convention (SOLAS).

As of July 1, only containers with a verified gross mass will be cleared to be loaded onto a ship under the International Maritime Organization’s Safety of Life at Sea (SOLAS) Verified Gross Mass (VGM) amendment. Shippers hoping that the implementation of the ruling will be delayed or deferred are whistling in the dark, say industry analysts.

Amid the many worrisome economic indicators kicking around of late, something along the lines of good news came about this week in the form of United States new home sales data, issued by the United States Department of Commerce this week.

In March, the SCI came in at 0.4, which FTR described as “a near neutral reading” on the heels of four months of more favorable market trends for shippers.

Article Topics

News · UPS · E-commerce · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA