Shipper Profits Tumble

Shipper profits tumble

Still smarting from heavy shipping delays last December, UPS is taking steps to ensure that it doesn’t have a repeat occurrence this fall.

In its latest financial report on the first six months of this year issued on July 29, UPS announced that it would increase investment in improved capacity and accelerate deployment of routing software, among other investments, by $175 million.

Also in the report, the company recorded an after-tax liability of $665 million to transfer certain Teamster employee post-retirement liabilities to defined contribution healthcare plans. The additional expenses contributed to a 57 percent drop in net income from the previous year to $1.36 billion.

While the additional expenses had an adverse impact on net income, UPS realized a healthy increase in its domestic shipping operations with a gain of $644 million or 3.9 percent. Average domestic daily volume increased by 785,000 or 5.8 percent, however the average domestic revenue per piece decreased by 1.8 percent.

Though the company warned investors of reduced earnings through the remainder of the year, it also stated that these expenses will “provide financial benefits for years to come.”



  1. Anonymous

     /  August 16, 2014

    ups is still doing better than the p.o. …

  2. Jonn

     /  August 18, 2014

    UPS has an advantage. They don’t have to delivery to every address in the US. The PO does.

  3. grannybunny

     /  August 18, 2014

    They can keep their defined contribution healthcare plans.

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