UPS reports a 21 percent jump in revenue as online shopping surges.
United Parcel Service reported a 21 percent increase in sales, with sales of about $ 24.9 billion in the final three months of last year, driven by a supercharged online holiday shopping season.
The company’s chief executive, Carole Tomé, said in a statement, “Our financial performance in the fourth quarter exceeded our expectations, and I would like to thank all UPS-ers for their extraordinary efforts to deliver industry-leading service through the holidays.” Thank you. “
Shortly after the epidemic began, Ms. Tome, who works at the company, is creating a “better, not bigger” strategy aimed at improving profits on package volumes. Excluding pension costs and a tax charge related to the sale of UPS freight, the company’s profit per share increased to $ 1.94 in the fourth quarter from $ 2.94 a year earlier, surpassing analyst estimates. The company’s share price was over 3.5 percent in premarket trading, but declined after the market opened.
Despite causing initial disruption, the epidemic accelerated online shopping, raising the company’s average daily package volume to 24.6 million, a 13 percent increase from 2019. Excluding one-time costs, profit was also 9.5 percent for 2020. , About 7.2 billion dollars.
The company declined to give forecasts for this year citing uncertainty due to the epidemic.