UPS reports surge in Q4 earnings

Global revenue grew 8.4% to $13.42 billion, generating $1.8 billion in adjusted operating profit, a 40% increase. 

During the full year 2010, the company delivered 3.9 billion packages, an average of 15.6 million per day. 

For the full year 2010, UPS posted revenues of $49.5 billion, an increase of 9.4%. Adjusted operating profit was up 47% to $5.8 billion, with the International and Supply Chain & Freight segments achieving record-setting levels, generating $1.9 billion and $577 million, respectively.

On a reported basis, operating profit for the year was up 55% to $5.9 billion.

Consolidated results for Q4:

• Revenue up 8.4% to $13.42 billion (Q4 2009: $12.38bn)
• Operating profit up 43.6%to $1.81 billion (Q4 2009: $1.76bn)          

US Domestic Package:

• Revenue up 7% to $8.08 billion (Q4 2009: $7.55bn)
• Operating profit up 31.4% to $1.04 billion (Q4 2009: $764m)

International Package:

• Revenue up 9.6% to $3.05 billion (Q4 2009: $2.79bn)
• Operating profit up 15% to $537 million (Q4 2009: $467m)

Supply Chain & Freight:

• Revenue up 12.8% to $2.29 billion (Q4 2009: $2.03bn)
• Operating profit up 32.9% to $234 million (Q4 2009: $176m)

UPS Freight outpaced the market with a 23% increase in revenue due to double-digit growth in shipments per day, an increase in gross weight hauled and significant yield improvement.

Forwarding and Logistics revenue increased by 10.1% to $1.6 billion, driven primarily by revenue management initiatives in the Forwarding business unit. 

Near the end of 2010, UPS announced a significant expansion of its global healthcare distribution facility network in the US, Asia, Europe and Canada to accommodate continued rapid growth in its healthcare business.