A truncated holiday peak season, higher costs driven by record online shopping, and bad weather will impact earnings for 2013 at United Parcel Service (UPS).
“Full-year 2013 adjusted diluted earnings per share are expected to be $4.57, below the previously provided guidance of $4.65 to $4.85,” said the package delivery company, the world’s biggest.
The Atlanta-based company anticipates fourth-quarter 2013 diluted earnings per share of $1.25.
Results were undermined by a compressed peak season, coupled with higher operational costs as a result of an unprecedented level of online shopping that included a surge of last-minute orders.
“UPS took extraordinary measures deploying additional equipment and people. For example, the company utilized 85,000 temporary employees, 30,000 more than planned,” it said, adding that weather disturbances in December weighed in on results, too.
On December 23, UPS delivered more than 31 million packages, the most ever and 13 percent over the prior-year peak day. This year’s highest delivery day occurred six days later than expected and was 7.5 percent greater than planned.
Despite the disappointing fourth-quarter performance, the company said it expects full-year 2014 diluted earnings per share to meet long-term targets of 10 percent to 15 percent growth over 2013 adjusted results.
The company will disclose full-year 2013 earnings on January 30, 2014.
Photo: IntelFreePress
