Buoyed by the first-ever profit on its international operations, United Parcel Service turned in a stellar performance in 1998.
The Atlanta-based parcel carrier earned $1.7 billion on revenue of $24.8 billion, compared with net income of $909 million on revenue of $22.4 billion in 1997.
A threatened pilots’ strike at rival Federal Express gave UPS a boost in the fourth quarter, although a company spokesman said the effect of that labor unrest could not be quantified.
“There was an impact,” said Norman Black, manager of media relations. “Many, many customers made alternative arrangements and started sending us volume when it looked like there was going to be a pilots’ strike at FedEx.”
UPS said revenue climbed 8.6% to $6.66 billion and net income surged 37.3% to $482 million in the three months that ended Dec. 31. Next Day Air volume was up 14.1% for the year.
Except for losses in its international business, the company’s 1997 results reflected the impact of a 15-day strike.
Black said ground package volume in the fourth quarter of 1998 was “essentially flat,” compared with the same period in 1997, and is still down compared with the 1996 pre-strike fourth quarter.
“We have not recovered fully from the effects of the Teamsters strike,” he said. “We’re getting close, but we’re still down.”
For the full story, see the March 1 print edition of Transport Topics. Subscribe today.
1027
