For 2009, UPS posted an adjusted operating profit of $4 billion. Reported operating profit was $3.8 billion, on revenues of $45.3 billion (down 12%).
According to chairman & CEO Scott Davis, UPS ended 2009 on a high note, which is partly attributed to a stronger than anticipated peak holiday shipping period. Furthermore, the network changes implemented throughout the year helped the company to emergedfrom the worst recession in decades leaner, more focused and better positioned to take advantage of increased global trade.
For the fourth quarter, UPS achieved an operating profit of $1.26 billion (Q4 2008: $803m), on revenues of $12.38 billion (Q4 2008: $12.7bn). Package volume was up 1.4%.
The company's Domestic Package segment posted an operating profit of $764 million (Q4 2008: $932m), on revenues of $7.55 billion (Q4 2008: $7.99bn).
UPS's International Package division's operating profit was up 27.6% to $467 million (Q4 2008: $366m), with revenue up 5.8% to $2.79 billion (Q4 2008: $2.64bn).
The company's Supply Chain & Freight segment posted an operating profit of $28 million (Q4 2008: operating loss $495m), on revenues of $2.03 billion (Q4 2008: $2.07bn).
Overall, revenue and operating profit were impacted by declines in global forwarding and UPS Freight.
Forwarding's operating margin was challenged by rapidly escalating transportation costs stemming from a surge in demand in a capacity-constrained environment out of Asia.
UPS Freight had a difficult fourth quarter, posting an operating loss for the quarter, although the Logistics business recorded an increase in revenue, driven by growth in the healthcare sector.
According to chief financial officer Kurt Kuehn, the company expects to substantially improve performance in 2010 by leveraging its extensive product portfolio and global network.
