United Parcel Service Inc.'s revenue jumped 21% year over year in the fourth quarter of 2020, but its GAAP loss widened significantly over the same period as the package delivery giant incurred charges totaling $5.6 billion.
UPS reported a fourth-quarter 2020 net loss of $3.26 billion, or a loss of $3.75 per share, compared with a net loss of $106 million, or a loss of 12 cents per share, in the same period in 2019.
The company said its GAAP results were impacted by a $5.6 billion charge, which includes a $4.9 billion pension charge, a $114 million after-tax transformation charge and a $545 million after-tax impairment charge in relation to the sale of its freight division.
Excluding special items, UPS posted fourth-quarter adjusted net income of $2.33 billion, or $2.66 per share, up from $1.84 billion, or $2.11 per share, a year earlier. The S&P Capital IQ consensus normalized EPS estimate for the quarter was $2.14.
Fourth-quarter revenue climbed 21% year over year to $24.90 billion from $20.57 billion. All three business segments recorded higher sales, led by the supply chain and freight unit with 29% growth.
Full-year revenue rose to $84.63 billion in 2020 from $74.09 billion in 2019, while annual adjusted EPS grew to $8.23 from $7.53 over the same period.
UPS did not provide earnings guidance for 2021, citing the uncertainty surrounding the coronavirus pandemic.