United Parcel Service, Inc. (NYSE: UPS), the world’s largest package delivery company, released its fourth-quarter 2017 financial report today, reporting that revenue increased 11.2% for 4Q17 and 8% for full-year 2017, and the adjusted 4Q earnings per share is $1.67.
For the U.S. domestic segment of UPS, revenue increased $922 million, 8.4%, over 4Q 2016, driven by Deferred Air and Ground. The demand for UPS rose in the fourth quarter with volume growth of 5.7% and revenue of 9.3%. The international segment reported revenue growth of 13% driven by premium products and export shipment growth surged 16% per day. And revenue from supply chain and freight segment increased 21% over 4Q 2016.
“We achieved our 2017 adjusted earnings-per-share target through exceptionally strong revenue and yield growth, coupled with benefits from our network investments and portfolio initiatives,” said David Abney, UPS chairman and CEO.
However, the shares of UPS have slipped 7.18% to $118.16 because of the higher costs handling record package volumes in the U.S during the holidays. Moreover, the company offered a lighter 2018 earnings outlook and said it would spend more on capital spending than analysts expected. UPS is planning to spend $6.65 to $7 billion in capital spending – up from the 5.2 billion it spent last year, as it continues to invest in new technology, aircraft and automated capacity.