UPS Q4 Earnings: Surge In Operating Expenses Was Expected

GAAP earnings per share suffered from mark-to-market pension adjustments, to reach $0.49, compared to $1.25 in 2013. UPS' poor performance comes as a result of higher than expected operating expenses incurred in order to cater to the growing volumes of e-commerce packages. We believe that going forward, the surge in operating expenses due to seasonal e-commerce volumes may be countered by changes in UPS' pricing mechanisms.