During the quarter, the company announced the ratification of a new five-year agreement with the International Brotherhood of Teamsters, eight months before expiration of the existing contract. As a result, $6.1 billion was paid to withdraw approximately 45,000 UPS employees from the Central States multi-employer pension plan and expensed to the U.S. Package segment in the quarter.
The fourth quarter produced solid growth in spite of a sluggish US economy. Consolidated average daily package volume reached a record level of 17.7 million pieces, an increase of 359,000 per day. Adjusted net income for the quarter benefited from a lower effective tax rate. For the full year, the Company delivered a record 3.97 billion packages, an average of 15.8 million per day. Consolidated revenue climbed 4.5% to US$49.7 billion.
In the Supply Chain and Freight division, fourth quarter revenue improved 7.8% and operating profit increased US$83.0 million over last year's results. Overall revenue reached US$2.22 billion as the operating margin reached 3.7%. In a challenging heavy freight environment, UPS Freight boosted revenue by 12.2% to US$525.0 million with less-than-truckload (LTL) shipments per day increasing 7.8%, well outpacing the market. In the Forwarding and Logistics unit, revenue increased 6.4% to US$1.57 billion.
For the full year, unaudited results show that Supply Chain & Freight revenues reached US$8.4 billion, up by 5.3% from 2006. Forwarding and Logistics revenues reached US$5.9 billion, up by 4.0%, as Freight revenues climbed 8.0% to US$2.1 billion.