Bangkok--Feb 3--Ogilvy Public Relations Worldwide
UPS Thailand reported more than 40% growth in export volume for the fourth quarter of 2005, and nearly 40% in YTD growth compared to the same period in 2004. UPS Thailand’s continued growth is in line with UPS’s operations across Asia Pacific, which recorded nearly 20% growth in export volume for the fourth quarter.
Globally, led by a strong 21.5% gain in worldwide revenue, UPS reported net income of $1.05 billion and a 25% increase in diluted earnings per share for the fourth quarter.
For the full year, adjusted earnings per share climbed 19.7% and the company generated $3.5 billion in free cash flow. The 12-month period also produced record volume with UPS delivering 3.75 billion packages in 2005, or an average of 14.8 million per day.
"UPS Thailand's performance in 2005 has been exceptional," said Halim Selamat, Managing Director of UPS Thailand. "Our momentum accelerated during each quarter of 2005 and achieved a superb growth volume of more than 40% in Q4. We look forward to more progress in 2006."
For the quarter ended Dec. 31, 2005, global volume increased 7.9% to a record 16.8 million packages per day. That equates to an additional 1.2 million packages delivered per day. U.S. volume grew 6.2% in total, paced by an 8.5% increase in deferred air volume coupled with a 6.3% increase in Next Day Air? packages. Average daily ground volume in the U.S. rose 5.9%. U.S. volume gains in the fourth quarter were the highest experienced by the company in several years.
Internationally, average daily package volume rose 25.1% to 1.8 million a day. Export volume was again strong with a 15.4% increase reflecting significant gains across all regions of the world.
Revenue for the fourth quarter climbed 21.5% to $11.95 billion, including the impact of acquisitions. Consolidated operating profit increased 42.1% to $1.71 billion. Adjusting fourth quarter 2004 results for an aircraft impairment charge and a charge to pension expense, operating profit jumped 24.3%.
Highlights by segment for the fourth quarter included:
U.S. domestic package revenue grew 8.9% during the period to $7.82 billion. Boosted by a strong holiday season, all products experienced strong volume growth. Excluding the impact of the 2004 aircraft impairment and pension charges, operating profit rose 21.9% to $1.24 billion. Pricing remained firm. The U.S. segment’s operating margin increased to 15.8%.
International package revenue increased 18.3% to $2.22 billion. Excluding the impact of the 2004 aircraft impairment charge, operating profit climbed 25.3% to $431 million. Export volume grew 15.4% with double-digit growth across Asia, Europe and the U.S. International domestic volume climbed 31.7% aided by acquisitions in Europe during the year. The international operating margin increased to 19.4%.
Revenue for the supply chain and freight segment jumped 146% to $1.91 billion, reflecting the positive impacts of both the Menlo Worldwide Forwarding and Overnite acquisitions. Operating profit climbed 139% to $43 million. Revenue at Overnite for its first full quarter as part of UPS totaled $483 million.
For the full year ended Dec. 31, 2005, diluted earnings per share totaled $3.47 compared to $2.93 per diluted share in 2004. Adjusting for the effects of the impairment and pension charges and tax credits recorded in 2004, diluted earnings per share increased 19.7%, up from $2.90 in 2004. This was at the high end of the company’s 18-to-20% anticipated growth range, the second consecutive year of nearly a 20% gain in adjusted earnings. Revenue increased 16.4% to a record $42.6 billion while operating profit rose 23.1% to $6.14 billion. Net income for 2005 totaled $3.87 billion, up 16.1% compared to the $3.33 billion reported in 2004. Adjusting 2004’s amounts for the effects of the items described above, operating profit increased by 19% and net income was up 17.2%.
“The year was one of significant growth, margin expansion and excellent cash flow,” said Chief Financial Officer Scott Davis. “We’re optimistic about 2006 and confident in our ability to continue producing the type of consistent earnings growth for which we’re known. We will continue to invest in all three of our businesses and execute strategies in each segment that will enable us to capitalize on the growth in global commerce.”
For the first quarter of 2006, UPS is projecting diluted earnings per share in a range of $0.85 to $0.89 compared to the $0.78 reported during the prior-year period. For the full year of 2006, Davis reiterated UPS’s expectation of an increase in diluted earnings per share of 11-to-16%, consistent with the company’s historical compound annual growth rate.
UPS is the world’s largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries
and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at UPS.com.
Issued on behalf of : UPS Thailand
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