UPS sees double digit profit growth

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UPS saw profits increase by 12.2 per cent in 2015 to $4.9 billion, with all business areas boasting large operating profit rises.

For 2015, international packages saw the largest operating profit increase, up 14.5 per cent to $2.2 billion. US domestic packages saw the smallest rise in operating profits, up 7.1 per cent to $4.8 billion, while supply chain and freight increased by 8.1 per cent to $776 million.

In the fourth quarter, net income increased by 23.2 per cent to $1.4 billion. US domestic saw operating profits rise by 18.4 per cent to $1.3 billion, international packages rose by 16.4 per cent to $624 million and supply chain and freight increased by 11.2 per cent to $199 million.

UPS chief executive officer, David Abney says: “Our flexible integrated network, close collaboration with customers and the extraordinary efforts of UPSers enabled us to achieve great service and record financial performance this quarter. This year’s results build on our multi-year strategy to deliver improved shareholder value.”

This came despite revenue growing only marginally, increasing by 0.2 per cent for the year to $58.3 billion, and up one per cent in the fourth quarter to $16.1 billion. For the year, US domestic revenue rose by 2.5 per cent to $36.7 billion, international packages fell by 6.5 per cent to $12.1 billion, and supply chain and freight was up by 0.8 per cent to $9.4 billion.

Fourth quarter US domestic revenue rose by 2.6 per cent to $10.3 billion, international packages dropped by 7.3 per cent to $3.2 billion, and supply chain and freight increased by six per cent to $2.6 billion.

UPS chief financial officer, Richard Peretz says: “This was the fourth consecutive quarter that UPS exceeded our financial expectations. Our business generated strong results in 2015. While we face uncertain macro-economic conditions, we are continuing to invest for profitable growth.”