United Parcel Service Inc on Thursday reported a fourth-quarter net profit that was hurt by additional costs from surging shipping volumes during the peak holiday period, and its shares fell more than 3 percent. The world's largest package delivery company had faced system bottlenecks and delayed deliveries in the peeriod leading up to Christmas Often seen as an indicator of US economic activity and consumer spending, UPS said revenue increased to $18.83 billion in the quarter from $16.93 billion a year earlier, above Wall Street expectations of $18.18 billion.
The Atlanta-based company said revenue at its core US domestic package service rose 8.4 percent to $11.84 billion on higher demand from online purchases. UPS posted fourth-quarter net income of $1.1 billion or $1.27 per share, compared with a year-earlier loss of $239 million, or 27 cents per share. Adjusted for one-time items, earnings per share of $1.67 edged past analysts' expectations of $1.66.
The company said changes to US tax laws benefited its results by 30 cents per share.
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