We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2022
    • Upload Your Video
Home » UPS forecasts lower full-year earnings due to higher costs of holiday deliveries
newsworthy

UPS forecasts lower full-year earnings due to higher costs of holiday deliveries

January 17, 2014
DC Velocity Staff
No Comments

UPS Inc., the nation's largest transportation company, said today it will report lower-than-expected 2013 earnings due mostly to higher fourth-quarter costs associated with the unexpected surge in traffic close to the Christmas holiday.

Atlanta-based UPS, which previously forecast "diluted" earnings of between $4.65 and $4.85 per share for the year, said full-year diluted earnings are likely to come in at $4.57 a share. A diluted earnings per-share calculation is considered a "worst case" scenario that reflects the issuance of stock for all outstanding options, warrants, and convertible securities that would reduce earnings per share.

The announcement shed light on the company's challenges in meeting delivery commitments amid the shortest holiday shipping season in 11 years and a rush of online orders during the final two to three days before Christmas. On Dec. 23, UPS delivered more than 31 million packages, the most ever in one day and 13 percent more than the prior-year peak day. The 2013 peak day delivery volume was 7.5 percent higher than planned, UPS said. To cope with the crush, UPS said it hired 85,000 temporary seasonal employees, 30,000 more than planned.

UPS' fourth-quarter results were also impacted by a severe ice storm in early December that virtually paralyzed the critical Dallas-Fort Worth region. The storm forced UPS drivers en route with packages to pull off the road for several days. In addition, once the weather cleared some drivers were constrained by federal hours-of-service driver regulations and had to remain idle. Many local businesses were closed due to the storm, requiring UPS to return packages to local distribution points for subsequent re-deliveries. The company also dealt with intermittent power outages as ice-coated tree limbs fell on power lines.

UPS said in today's statement that it expects 2014 diluted earnings per share to grow by 10 to 15 percent, in line with its long-term targets. The company will release its 2013 results on Jan. 30.

Transportation Parcel & Postal Carriers
KEYWORDS UPS
  • Related Articles

    UPS warns of lower fourth-quarter earnings as high operating costs, subpar peak traffic take toll

    UPS projects lower-than-expected earnings in second quarter; multiple factors to blame

    higher prices mean lower costs?

Recent Articles by DC Velocity Staff

DHL expands pop-up store network

E-commerce delivery startup ShipX acquires east coast trucking fleet

Research finds more women in supply chain leadership roles

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Now's the time to be a logistics professional

  • Autonomous trucking firms launch partnerships with freight transportation providers

  • Demand for piece-picking robots gains steam

  • Report: Delivery expectations intensify

  • An inside look at the robotic revolution — and what it all means for you (Part II)

Now Playing on DCV-TV

4fbb31a9 f7bf 4e1f b64f f0a3e195ef0f

Cubework alleviates e-commerce logistics challenges w/ flexible warehouse options

DCV-TV 4: Viewer Contributed
E-commerce firms, small and medium enterprises (SME), and e-tailers of all sizes have been hit hard by pandemic-driven supply chain and logistics issues. Online shopping demand is at an all-time high, and never before have last-mile logistics and warehousing been more important. But actually securing affordable and...

FEATURED WHITE PAPERS

  • Guide to Proven Warehouse Solutions

  • Five common misconceptions about running a private fleet

  • Optimize AS/RS With Advanced Warehouse Execution Software

  • The Value of Genuine Parts and Service

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2022. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing