UPS (UPS) is adding surcharges to residential packages.

The company made the move due to disappointing financial results this holiday season. UPS’ fourth quarter was below expectations.

UPS had a fourth-quarter net profit of $1.15 billion, a 2% decline from the year-ago period. CEO David Abney said the charges will implemented over several years.

The company’s 2015 earnings are expected to be in the range of $5.05 to $5.30 per share–well within analysts’ expectations.

“These pricing strategies will be designed to ensure we are properly compensated for the value we provide,” Abney said.

UPS stock is up 0.44% Tuesday.

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