UPS Takes $2.58 Bln. 4Q Loss on Pension Charge
UPS Inc. said Wednesday it lost $2.58 billion in the fourth quarter, primarily due to a big charge to exit a union pension plan.
UPS lost $2.58 billion, or $2.46 per share, compared with a fourth-quarter profit the previous year of $1.13 billion, or $1.04 per share.
The pension plan charge was a $6.1 billion payment to withdraw 45,000 of its employees from the Central States Pension Plan and shift them to another plan, the company said.
Adjusted earnings per share for the quarter rose 8.7%, or $1.13 per share, UPS said. Revenue rose 6% to $13.4 billion.
Less-than-truckload revenue rose 12.2% to $525 million, with 7.8% shipment growth, UPS said.
For the full year, UPS earned $447 million, or 42 cents per share, compared with a profit of $4.2 billion, or $3.86, in 2006. Revenue rose to $49.7 billion, from $47.6 billion the previous year.
“We anticipate the first quarter will be the most difficult of the year, due to lower profitability from an early Easter and additional interest expense not yet offset by labor contract benefits,” said Chief Financial Officer Kurt Kuehn.
He said UPS expects its first-quarter earnings per share to be 94 cents to 98 cents, and its earnings for the full year to be between $4.30 and $4.50 per share.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.
