UPS reported a net loss of $1.7 billion in the fourth quarter of 2012, falling $2.5 billion from a profit of $725 million in the fourth quarter of 2011.
The net loss was largely tied to a $3 billion non-cash charge related to company-sponsored pension and retiree benefit plans. Excluding the charge, UPS would have had a profit of about $1.3 billion.
Quarterly revenue was $14.6 billion, up 2.9 percent from $14.2 billion in the same quarter the previous year. Domestic revenue rose by 3.0 percent year-over-year to $8.9 billion, international revenue increased by 1.5 percent to $3.2 billion and supply chain and freight improved by 4.0 percent to $2.4 billion.
For the quarter, UPS delivered 18.8 million packages per day, an increase of 2.9 percent compared with the prior-year period. The company delivered more than 500 million packages, including almost 28 million on its peak day, which were both record highs.
For the full year of 2012, net income was $807 million, plummeting 78.8 percent from $3.8 billion in 2011.
Yearly revenue was $54.1 billion, rising 1.9 percent from $53.1 billion in 2011. Domestic revenue rose by 3.6 percent year-over-year to $32.9 billion and supply chain and freight revenue inched up 0.1 percent to $9.1 billion, while international revenue dropped by 1.0 percent to $12.1 billion.
UPS delivered more than 4 billion packages in 2012.
“Economic growth for 2013 is expected to be below long-term trends,” said Kurt Kuehn, the company’s CFO, in a written statement.