UPS reports strong annual growth

International delivery company UPS has reported that its total revenue for Q4 of 2015 was USD $16.1bn. This was up very slightly on Q4 2104 because revenue growth, according to UPS, “was slowed by currency translations and lower fuel surcharges”.

On a currency neutral basis, revenues were actually up 2.4% compared to the same period last year. The company posted adjusted diluted earnings per share of USD $1.57 per share for the quarter, a 26% increase on Q4, 2014. For the full year UPS gave adjusted diluted earnings per share of USD $5.43, an increase of 14% year on year.

All of the three business segments, Domestic Package, International Package and Supply Chain & Freight increased their operating margins and all saw double digit profit growth in the last quarter.

David Abney, UPS CEO said, “Our flexible integrated network, close collaboration with customers and the extraordinary efforts of UPSers enabled us to achieve great service and record financial performance this quarter. This year’s results build on our multi-year strategy to deliver improved shareowner value.”

In terms of delivery, the company delivered 1.3bn packages in the 4th quarter, an increase of 1.8% against the same period last year. Across the whole year the company delivered 4.7bn packages, up 2.1% year on year. In the peak season alone UPS managed to deliver 612m packages.

“Strong demand from ecommerce shippers contributed to a 2.4% increase in average daily shipments,” said UPS. “Deferred Air products soared 15% and Next Day Air was up 10% over the same period last year.  UPS completed deliveries to more than 1.9m new addresses during December, demonstrating the growing influence of online retail.

“Adjusted operating profit increased $209 million, or more than 18% over the fourth-quarter 2014 adjusted results.”

“International adjusted operating profit was up 16%, to $624 m, in the fourth quarter, led by strong performance in Europe,” said UPS. ” Disciplined pricing, favourable customer and product mix, combined with improved operational performance, drove increased profitability.  For the first time, the International segment surpassed $2 b in annual adjusted operating profit.”