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.

Get Advice Join TDU Donate

Recent News

TDU Convention, October 1-3 in Chicago

Make your plans to be at the TDU Convention, October 1-3, at the Crowne Plaza Hotel near the Chicago O’Hare Airport. Our Convention will wrap up one day before the ballots are mailed for the IBT election. Register online or contact TDU to register.

IBT Convention Footage and Highlights

Recordings of the complete 2021 IBT Convention are available here for any member to view.  The convention was held June 22-23-24, 2021 online, with some 1600 elected delegates participating and voting. 

View More News Posts