February 3, 2010, 12:00 AM

UPS package volume in the U.S. declined 2% in Q4, but grew 3% globally

UPS reported a 3% decline in revenue but said net earnings nearly tripled thanks to growth in its international business and lower fuel costs.

Parcel delivery company United Parcel Service of America Inc. reported its overall package volume rose 1.4% in fourth quarter versus a year ago, though U.S. volume was down 2%. While revenue was down 3% in the quarter, the company registered a 198% rise in net earnings thanks to growth in its international business and lower fuel costs. Even with the volume pickup in Q4, the company’s delivery volume for the year was down 3%.

For Q4 UPS reported:

     

  • Package volume rose 1.4% to 1.1 billion pieces while average package volume per day was unchanged at 17.3 million packages.
  • During the holiday season, global volume exceeded 22 million packages on eight days, including two days that exceeded 24 million packages.
  • UPS experienced more delivery volume than in 2008 on each of the seven days before Christmas.
  • Revenue of $12.4 billion vs. $12.7 billion a year ago, a 2% decline.
  • Net income of $757 million vs. $254 million a year ago.

 

For 2009, UPS reported:

     

  • Average daily package volume of 15.1 million vs. 15.5 million a year ago, a 3% decline.
  • Revenue of $45.3 billion vs. $51.5 billion a year earlier, a 12% drop.
  • Net income of $1.39 billion vs. $2.75 billion a year earlier, a 49% decline.

 

For the year, U.S. next day air package volume was down 17% vs. a year ago-averaging 5.45 million per day compared with 6.56 million the prior year-while the average next day air package cost shippers $18.00, down 18% from $21.95 a year ago.

UPS’s U.S. package operation reported for Q4:

     

  • Average daily volume of 14.86 million vs. 15.15 million, a 2% decline.
  • Revenue of $7.55 billion vs. $7.99 billion a year ago, a 6% drop.
  • Net income of $764 million vs. $932 million a year ago, an 18% decline.

 

UPS’s International package operation reported for Q4:

     

  • Average daily volume of 2.4 million vs. 2.2 million, a 9% rise.
  • Revenue of $2.79 billion vs. $2.64 billion a year ago, up 6%.
  • Net income of $467 million vs. $366 million, up 28%.

 

“UPS has emerged from the worst recession in decades leaner, more focused and better positioned to take advantage of increased global trade,” says CEO D. Scott Davis.

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