UPS takes $1.8B pension hit
Adjusted earnings were in line with expectations
United Parcel Service lost money at the end of 2019 and forecast lower earnings this year than analysts expected, sending shares lower.
The Atlanta-based shipping and logistics giant lost $106 million, or 12 cents a share, after taking a $1.8 billion hit related to its pension plan. The losses came despite revenue climbing 3.6 percent to $20.57 billion. Adjusted earnings of $2.11 a share were in line with estimates.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UPS | UNITED PARCEL SERVICE INC. | 131.37 | -0.72 | -0.55% |
“Our network improvements from transformation enabled UPS to embrace a surge in demand for air products while at the same time generate productivity improvements,” CEO David Abney said in a statement.
UPS said its average daily volume exceeded 26.6 million packages, up 7.5 percent from the year before as high demand for air deliveries in the U.S. provided a boost.
Total U.S. volume rose by 9 percent, driven by faster e-commerce deliveries. Revenue from the company's U.S. business grew 6.5 percent year-over-year to $13.41 billion.
Meanwhile, international revenue slipped 1.8 percent to $3.76 billion amid weakness in the United Kingdom, where the country's exit from the European Union is clouding the economic outlook.
Looking ahead, UPS sees adjusted earnings of $7.76 to $8.06 a share, missing the $8.07 that analysts surveyed by Refinitiv were expecting.
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UPS shares fell 1.1 percent year-to-date through Wednesday, lagging the S&P 500's 1.3 percent gain.