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UPS (UPS) - Get Free Report missed market expectations for the fourth quarter, it announced Tuesday, after pension charges hurt profit across all its segments, prompting the shares to drop ahead of the market opening in New York.

The Atlanta-based package delivery company said it lost 27 cents a share on sales of $16.931 billion for the three months ended in December. Adjusted earnings per share, which exclude the impact from the mark-to-market pension charges, came to $1.63, shy of the market consensus of $1.69.

"The investments in Orion and automation provided benefits during the quarter," said Chief Financial Officer Richard Peretz. "However, bottom-line results were challenged by a shift in product mix and the continued softness in industrial production. Strong growth, combined with our network investments, provide UPS with great opportunities for many years to come."

UPS shares had dropped 3.4% in premarket trading after closing at $117.03 in New York on Monday.

Operating profit dropped in all of UPS's segments, mainly due to the pension charges. Excluding such charges, revenue and operating profit advanced for both the U.S. domestic and international segments, but the supply chain and freight segments suffered a profit drop despite top-line growth.

For 2017, UPS expects diluted earnings per share of between $5.80 and $6.10 a share.