UPS reported higher operating costs in the fourth quarter of 2013, attributing the spike to weather troubles that led to excess spending domestically.
"The increased volume put a strain on our network, causing delays. In response, UPS deployed additional people and equipment, placing a greater emphasis on service than cost," stated Chief Executive Officer and Chairman Scott Davis. "UPS will make the necessary investments and operational improvements to ensure we meet the needs of the marketplace."
UPS’ fourth-quarter revenue increased by 4.2 percent to $9.3 billion. Daily package volume also increased by 5.6 percent.
UPS reported its average daily package volume rose 6 percent, as deliveries in December shot up by 20 percent.
The company said it delivered 20 million packages a day in the fourth quarter, with total yearly shipments increasing by 3.9 percent, year over year, to 4.3 billion.
In addition, UPS said it will repurchase $2.7 billion worth of UPS shares in 2014.
"While the year ended on a challenging note, we are confident in our ability to adapt, and we expect much better results in 2014," stated Kurt Kuehn, chief financial officer.