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

When an industry is changing rapidly, companies must adapt in order to survive. In this whitepaper, a global publisher was seeking a partner that could mitigate risk and build a platform flexible enough for their shifting customer expectations. The solution enabled the company to rewrite their operations game plan and transform their supply chain.

Global trade management technology provider Amber Road (formerly known as Management Dynamics) said this week it has acquired ecVision, a cloud-based provider of global sourcing and collaborative supply chain solutions.

While it is already reaping myriad benefits from ORION (On-Road Integrated Optimization and Navigation), a proprietary routing platform for its drivers rolled out in late 2013, transportation and logistics bellwether UPS announced big plans for the technology this week.

Diesel prices continued their recent stretch of gains with a 3.6 cent increase this week to $2.936 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

TSA has reaffirmed its March 9 general rate increase (GRI) of $600 per 40-foot container (FEU) for all shipments, and lines have also filed a previously announced April 9 GRI in the same amount.

Article Topics

News · UPS · E-commerce · All topics

Comments

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


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA