UPS forecast confirms e-commerce growth

A compressed shopping season coupled with the continued growth of e-commerce has UPS forecasting that peak season daily package volumes will grow by 8%.

UPS said it expects December 16 to be its highest volume day of the year with package pick-up expected to total 34 million. To put the growth of e-commerce in perspective, UPS said this year it expects there will be five delivery days within the peak season when package volume exceeds its busiest day last year. For example, after December 16, UPS said its next busiest volume day is expected to be Cyber Monday, December 2, when package volumes are forecast to total 32 million. Volumes on Tuesday, December 17 are forecast to be 29 million.

"We have seen year-over-year how e-commerce and the growing trend of mobile commerce continues to shape how consumers shop," said Alan Gershenhorn , UPS chief sales and marketing officer. "Our suite of solutions is uniquely positioned to help our e-commerce customers meet the changing consumer demands."

The holiday shipping forecast was also mentioned by UPS CFO Kurt Kuehn when the third quarter results were release on Friday.

"Third quarter results were strong and in line with our expectations. Looking to the fourth quarter, although some major retailers have expressed caution about holiday spending, they still expect robust online sales,” Kuehn said. "The late Thanksgiving creates a compressed peak season, which presents some operating challenges. Nonetheless, we are confident in UPS's ability to successfully deliver the holidays.”

The company reiterated it full year profit forecast which calls for earnings per share of $4.65 to $4.85, a 3% to 7% increase over 2012.