United Parcel Service lost money at the end of 2019 and forecast lower earnings this year than analysts expected, sending shares lower.
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The Atlanta-based shipping and logistics giant lost $106 million, or 12 cents a share, after taking a $1.8 billion hit related to its pension plan. The losses came despite revenue climbing 3.6 percent to $20.57 billion. Adjusted earnings of $2.11 a share were in line with estimates.
|UPS||UNITED PARCEL SERVICE INC.||172.10||-2.34||-1.34%|
“Our network improvements from transformation enabled UPS to embrace a surge in demand for air products while at the same time generate productivity improvements,” CEO David Abney said in a statement.
UPS said its average daily volume exceeded 26.6 million packages, up 7.5 percent from the year before as high demand for air deliveries in the U.S. provided a boost.
Total U.S. volume rose by 9 percent, driven by faster e-commerce deliveries. Revenue from the company's U.S. business grew 6.5 percent year-over-year to $13.41 billion.
Meanwhile, international revenue slipped 1.8 percent to $3.76 billion amid weakness in the United Kingdom, where the country's exit from the European Union is clouding the economic outlook.
Looking ahead, UPS sees adjusted earnings of $7.76 to $8.06 a share, missing the $8.07 that analysts surveyed by Refinitiv were expecting.
UPS shares fell 1.1 percent year-to-date through Wednesday, lagging the S&P 500's 1.3 percent gain.