United Parcel Service (UPS) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $239 million, or $ 0.27 a share in the quarter, against a net profit of $1,331 million, or $1.48 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $1,434 million, or $1.63 a share compared with $1,410 million or $1.57 a share, a year ago.
Revenue during the quarter grew 5.46 percent to $16,931 million from $16,054 million in the previous year period. Operating margin for the quarter stood at negative 2.53 percent as compared to a positive 12.78 percent for the previous year period.
Operating loss for the quarter was $428 million, compared with an operating income of $2,051 million in the previous year period.
However, the adjusted operating income for the quarter stood at $2,223 million compared to $2,169 million in the prior year period.
"Revenue and volume growth accelerated for UPS during the holiday season and we provided high service levels for our customers," said David Abney, UPS chairman and chief executive officer. "The International segment delivered another extraordinary performance, while the U.S. managed through considerable changes in product mix. Our strategies and initiatives are creating long-term value for both UPS customers and shareowners."
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $5.80 to $6.10, the company expects diluted earnings per share to be $0.30 on adjusted basis.
Operating cash flow declinesUnited Parcel Service has generated cash of $6,473 million from operating activities during the year, down 12.88 percent or $957 million, when compared with the last year. The company has spent $2,566 million cash to meet investing activities during the year as against cash outgo of $5,309 million in the last year.
The company has spent $3,140 million cash to carry out financing activities during the year as against cash outgo of $1,565 million in the last year period.
Cash and cash equivalents stood at $746 million as on Dec. 31, 2016, up 69.93 percent or $307 million from $439 million on Dec. 31, 2015.
Working capital drops significantly
United Parcel Service has witnessed a decline in the working capital over the last year. It stood at $1,533 million as at Dec. 31, 2016, down 38.97 percent or $979 million from $2,512 million on Dec. 31, 2015. Current ratio was at 1.13 as on Dec. 31, 2016, down from 1.23 on Dec. 31, 2015.
Debt moves upUnited Parcel Service has witnessed an increase in total debt over the last one year. It stood at $12,394 million as on Dec. 31, 2016, up 9.53 percent or $1,078 million from $11,316 million on Dec. 31, 2015. Total debt was 30.68 percent of total assets as on Dec. 31, 2016, compared with 29.54 percent on Dec. 31, 2015. Debt to equity ratio was at 28.89 as on Dec. 31, 2016, up from 4.54 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
