UPS sees revenues and profits increase as vaccine operations get underway

UPS posted increased revenues and operating profits in the fourth quarter of 2020 last year, as it started to transport coronavirus vaccines around the globe in the same period.

The company’s fourth-quarter 2020 consolidated revenue increased to $24.9bn, a 21% increase from the same period 2019.

Adjusted net income was $2.3bn, 26.4% above the same period in 2019, while the adjusted operating profit was $2.3bn, up 7.4% on a year earlier.

Looking at the company’s divisional outcomes for the fourth quarter of last year, the company’s best-performing sector was the US Domestic Segment, which posted a 17.4% year-on-year revenue increase to $15.8bn. Adjusted operating profit increased 16.1% to $1.2bn.

This outcome was “led by growth from small- and medium-sized businesses”, the company said.

UPS’ International Segment achieved a 26.8% year-on-year increase in revenues, “led by Asia and Europe”, to $4.8bn. It also achieved a 43.6% year-on-year increase in adjusted operating profit to $1.1bn.

The company’s Supply Chain and Freight Segment posted a 29% year-on-year revenue increase to $4.4bn. It also posted a 26.3% year-on-year increase in adjusted operating profit, to $331m.

UPS said this was due to “strong market demand in nearly all businesses including freight forwarding out of Asia and UPS Healthcare”.

For the full year of 2020, UPS achieved a 14.2% year-on-year increase in revenue to $84.6bn and a 7% increase in adjusted operating profit to $8.7bn.

Carol Tomé, chief executive of UPS, commented: “Our financial performance in the fourth quarter exceeded our expectations, and I thank all UPSers for their extraordinary efforts to deliver industry-leading service through the holidays.

“I’d also like to thank our customers who worked with us during this challenging year. As we look past 2020 into the new year, we are optimistic. During the fourth quarter, we began transporting Covid-19 vaccines and we stand ready to deliver hope and health to people around the world.”

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