UPS Reports Lower 1Q, Citing Bad Weather, Higher Expenses

Transport Topics
April 24, 2014

UPS Inc. reported lower first-quarter income from a year ago, citing severe weather and higher expenses.

The parcel delivery company’s net income declined to $911 million, or 98 cents a share, from $1.04 billion, or $1.08, a year ago.

Revenue rose 2.6% to $13.8 billion and operating expenses rose 3.5% to $12.3 billion.

“Much of the U.S. economy was negatively affected by the severe weather conditions in the first quarter,” which resulted in lower operating results, Chairman and CEO Scott Davis said in a statement.

The UPS supply chain and freight unit’s operating profit rose 3.5% to $148 million, led by gains in its forwarding and distribution units.

Less-than-truckload unit UPS Freight’s revenue rose slightly on a 3.1% increase in LTL revenue per hundredweight, although tonnage and operating profit were lower, also due to severe winter weather.

Domestic package operating profit slipped 14.6% to $927 million. Revenue rose 2.6% to $8.5 billion, and daily volume improved 4.2%, led by UPS SurePost and UPS Second Day Air.

International package operating profit growth was 24% to $438 million. The prior-year period reflected a $39 million charge due to its attempted acquisition of TNT. International segment revenue rose 5% to $3.13 billion.

UPS is “encouraged by the positive trends in our business and expects the remainder of the year to perform as we originally guided,” Chief Financial Officer Kurt Kuehn said in a statement.

But Kuehn added that “due to the challenging start” of the year, the company is forecasting its full-year earnings per share to be $5.05 to $5.30, at the low end of its forecast range.

UPS is ranked No. 1 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.


Be the first to comment

Please check your e-mail for a link to activate your account.
Get Advice Join TDU Donate

Recent News

Kim Schultz Speaks Out at Women's Conference

In a speech to the Women’s Conference, IBT Vice President Kim Schultz spoke out on the need for more women’s leadership in the Teamsters. In response, some Hoffa supporters booed and walked out. Most attendees listened, applauded and thanked Kim for speaking out. Read the speech and judge it for yourself.

Happy Birthday!—TDU Turns 41 Today

On this day in 1976, a small group of courageous Teamsters met in Kent, Ohio, to form Teamsters for a Democratic Union (TDU).

View More News Posts