UPS revenue grows 5.5% in Q4 of 2016

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UPS revenue has increased 5.5 per cent in the fourth quarter to $16.9 billion, with strong growth for domestic and international packages.

US domestic package revenue grew 6.3 per cent to $10.9 billion, of which next day air was up 4.2 per cent to $1.8 billion.

International package revenue was up five per cent to $3.3 billion, with export revenue growing seven per cent to $2.5 billion.

UPS chairman and chief executive officer, David Abney says: “Revenue and volume growth accelerated for UPS during the holiday season and we provided high service levels for our customers.”

“The International segment delivered another extraordinary performance, while the U.S. managed through considerable changes in product mix.  Our strategies and initiatives are creating long-term value for both UPS customers and shareowners.”

Describing the outlook, chief financial officer, Richard Peretz says: “The investments in ORION and automation provided benefits during the quarter.”

“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.”

Revenue for the year was up 4.4 per cent to $60.9 billion, with US domestic growth of 4.2 per cent to $38.3 billion, and international was up 1.7 per cent to $12.3 billion.

Supply chain & freight also registered growth of 8.3 per cent to $10.2 billion.