Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

UPS says 4Q profit will miss expectations because of snarled holiday shipping

In this Oct. 22, 2012 photo, a UPS driver drives after a delivery in North Andover, Mass. THE CANADIAN PRESS/AP, Elise Amendola

Enlarge Image

In this Oct. 22, 2012 photo, a UPS driver drives after a delivery in North Andover, Mass. THE CANADIAN PRESS/AP, Elise Amendola

ATLANTA - UPS said the rough holiday shipping season means its fourth-quarter profit will be smaller than expected.

The package courier said on Friday that it dealt with a "an unprecedented level of online shopping that included a surge of last-minute orders." Online shopping is good for UPS, but those last-minute orders snarled its system.

The company said it "took extraordinary measures deploying additional equipment and people," including hiring 30,000 more temporary workers than originally planned. Bad weather last month also hurt results.

It delivered 31 million packages on Dec. 23, a company record. But that peak was reached six days later than UPS had expected.

UPS has not said how many packages missed their delivery deadlines, but customers all over the country reported delays. Amazon.com offered shipping charge refunds and a $20 credit for some customers affected by UPS delays.

FedEx also acknowledged problems.

UPS said its fourth-quarter profit will be $1.25 per share. Analysts surveyed by FactSet had been expecting $1.43 per share. It said its full-year profit would be $4.57 per share, after issuing previous guidance of $4.65 to $4.85 per share.

Its shares dropped $2.59, or 2.6 per cent, to $97.90 in morning trading Friday.

UPS reports full results on Jan. 30.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Submit a Random Act of Kindness
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates