News Content

UPS posts Q4 loss of US$239 million, down from $1.33 billion in 2015

UPS suffered a net loss of US$239 million in the fourth quarter compared with a $1.33 billion net profit recorded in the same period a year earlier. The loss was attributed to a non-cash, after-tax, mark-to-market pension charge of 1.90 per share.

Under UPS's defined benefit pension programmes for employees, the company reserves extra funds to cover any shortfall in its long-term pension obligations, reported American Shipper.

Over the whole of 2016, the company's net income fell 29.2 per cent year on year to $3.4 billion on revenue growth of 4.4 per cent to $60.9 billion.

Fourth quarter revenues increased by 5.5 per cent to $16.9 billion on the back of average daily shipment volumes in the company's US domestic segment rising five per cent to 19.6 million, while daily international exports increased 8.4 per cent year on year.

"Revenue and volume growth accelerated for UPS during the holiday season," UPS CEO David Abney said of the results. "The international segment delivered another extraordinary performance, while the US managed through considerable changes in product mix."

"The investments in ORION and automation provided benefits during the quarter," added chief financial officer Richard Peretz. "However, bottom-line results were challenged by a shift in product mix and the continued softness in industrial production. Strong growth, combined with our network investments, provide UPS with great opportunities for many years to come."