UPS Posts Huge 4th Quarter Earnings
Atlanta-based United Parcel Service (UPS) announced diluted earnings per share of $0.75 for the fourth quarter of 2009, above the company's original guidance of $0.58 to $0.65 per share, due in large measure to strong performance by its international segment. That segment saw volume growth, a substantial gain in operating profit and improvement to a 16.7 percent operating margin.
The quarter's diluted earnings per share declined 9.6 percent compared to the $0.83 in adjusted diluted earnings per share a year ago. Reported earnings per share for 2008 were $0.25.
For 2009, UPS generated free cash flow of $4.1 billion and posted adjusted operating profit of $4.0 billion. On a reported basis, operating profit was $3.8 billion. Adjusted earnings per share were $2.31 and $2.14 on a reported basis.
"UPS ended 2009 on a high note by leveraging network changes implemented throughout the year and executing flawlessly during the peak holiday shipping period, which was stronger than we had anticipated," said UPS chairman and CEO Scott Davis. "The company demonstrated its ability to manage effectively in changing market conditions. UPS has emerged from the worst recession in decades leaner, more focused and better positioned to take advantage of increased global trade."