UPS freezes top salaries, releases Q4 results
UPS today announced a fourth quarter profit of $254 million. However, because sales dropped 5.2%, the company also said it was freezing management salaries and suspending its match for 401(k) plans.
UPS reported adjusted diluted earnings per share of 83 cents for the fourth quarter, a 22% decline from the $1.07 adjusted diluted earnings per share for the same period last year.
"The severe decline in economic activity around the world resulted in sharply lower package and freight volumes for UPS," said Chairman and CEO Scott Davis in a statement. "Consequently, we're making the tough decisions necessary to adapt our enterprise to today's realities. This includes changes in organizational structure, compensation and network configuration."
For the fourth quarter, package volume declined 3.7%, to 1 billion pieces, on 5% lower revenue. For the full year, the company delivered 3.9 billion packages, an average of 15.5 million per day. Consolidated revenue increased 3.6% to $51.5 billion.
For the full year, UPS posted adjusted operating profit of $6 billion and adjusted diluted earnings per share of $3.50, within the range the company provided mid-year.