Category: UPS News

United Parcel Service was sued by Kim Muniz, who said the delivery giant had discriminated against her when she was demoted from her position as division manager. A jury found for Muniz and awarded her about $27,000 — about $10k in lost earnings, $7,300 in medical expenses and just under $10k for her “economic loss.”

That’s not the bad part. Muniz sued for attorneys’ fees — and a federal court awarded her almost $700,000. In other words, Muniz was awarded legal fees that were more than 25 times the damages approved by the jury.

The financial results in the U.S. were negatively affected by the combination of a shortened peak shopping season and an unprecedented level of online shopping that included a surge of last-minute orders. In an effort to maintain service standards and commitments, UPS deployed additional equipment and people. For example, the company utilized 85,000 temporary employees, 30,000 more than planned. Also, December weather had an effect and hurt earnings results.

As an analyst, I’ll cut UPS some slack on lowering its guidance for its fourth-quarter EPS. Despite its fourth-quarter challenges and results, the company is confident of its 2014 outlook. UPS expects full-year 2014 diluted earnings per share to grow in line with its long term targets of 10% to 15%, compared to 2013 adjusted results. Further details will be provided when the company releases earnings on Jan. 30.

United Parcel Service’s failure to deliver thousands of packages in time for Christmas did more than disappoint online shoppers. It’s apparently going to disappoint investors as well.

“Despite fourth-quarter performance, the company is confident of its 2014 outlook,” UPS said. It expects profits to rise 10% to 15%

A federal judge last week ruled four former United Parcel Service employees couldn’t move forward with a wrongful termination lawsuit stemming from a series of stink bombs set off at the UPS depot near the Philadelphia International Airport.

“The Philadelphia airport has doubtless been the site of many indignities,” U.S. District Judge Felipe Restrepo wrote Thursday in a memorandum accompanying his order that dismissed the suit against UPS. “Travelers who battled security lines and boarding mobs in 2006 and 2007, though, likely remained oblivious to a different plague of that time: a rash of ‘stink bombs’ released at the UPS airport facility.”