Strong 4th quarter for UPS

In UPS Q4 financial results for 2019, it has reported strong volume growth in the US Domestic segment. Export volumes were slightly down.

In the 4th Quarter:

– Average daily volumes exceeded 26.6 million packages, an increase of 7.5%.

– The volume growth boosted consolidated revenues by 3.6% to $20.6 billion.

– Adjusted operating profit grew by 13.7%.

“Our network improvements from transformation enabled UPS to embrace a surge in demand for air products while at the same time generate productivity improvements and positive operating leverage,” said David Abney, UPS chairman and CEO.  “Looking to 2020, we will continue to adapt to the changing environment, strengthen our network and create new solutions to support our strategic growth initiatives and help our customers grow and compete.”

UPS transformation initiatives including increased automated capacity and new aircraft positioned the firm to handle volume growth throughout the quarter. Across all products, UPS saw volume growth of 9%. Amazon and other major e-commerce players helped drive the volume increases.

“We processed record volume during the quarter as customers took full advantage of the capabilities of our integrated network and broad portfolio of solutions,” said Abney.  “Given the tremendous opportunities ahead, we have elected to implement SMB initiatives now to speed up our network and broaden our weekend operations, actions that will improve our competitiveness and generate growth.”