This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

UPS International Profit Rebounds

Stocks in this article: UPS

We supplemented the presentation of our third quarter and year-to-date 2012 and 2011 operating profit, operating margin, pre-tax income, net income and earnings per share with similar measures that excluded the impact of certain transactions. In the third quarter of 2012, we recorded an $896 million pre-tax charge in the U.S. Domestic Package segment to establish a withdrawal liability related to the New England Teamsters and Trucking Industry Pension Fund. In the second quarter of 2011, we incurred gains and losses on certain real estate transactions, including a $15 million pre-tax loss for U.S. Domestic Package segment and a $48 million pre-tax gain in the Supply Chain & Freight segment. The underlying matters that produced these charges were unique, and we do not believe they are reflective of the types of charges that will affect future results. We believe these adjusted measures better enable shareowners to focus on period-over-period operating performance.

Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for GAAP operating profit, operating margin, net income and earnings per share, the most directly comparable GAAP financial measures. These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the preceding reconciliations to corresponding GAAP financial measures, provide a more complete understanding of our business. We strongly encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements, including statements regarding the intent, belief or current expectations of UPS and its management regarding the company's strategic directions, prospects and future results, involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, governmental regulations, our competitive environment, strikes, work stoppages and slowdowns, changes in aviation and motor fuel prices, cyclical and seasonal fluctuations in our operating results, and other risks discussed in the company's Form 10-K and other filings with the Securities and Exchange Commission, which discussions are incorporated herein by reference.

United Parcel Service, Inc.
Selected Financial Data - Third Quarter
(unaudited)
           
 
Three Months Ended
September 30,   Change
2012   2011   $     %

(amounts in millions, except per share data)

Statement of Income Data:
Revenue:
U.S. Domestic Package $ 7,861 $ 7,767 $ 94 1.2 %
International Package 2,943 3,057 (114 ) -3.7 %
Supply Chain & Freight   2,267       2,342       (75 ) -3.2 %
Total revenue 13,071 13,166 (95 ) -0.7 %
 
Operating expenses:
Compensation and benefits 7,577 6,647 930 14.0 %
Other   4,728       4,853       (125 ) -2.6 %
Total operating expenses 12,305 11,500 805 7.0 %
 
Operating profit:
U.S. Domestic Package 129 1,046 (917 ) -87.7 %
International Package 449 417 32 7.7 %
Supply Chain & Freight   188       203       (15 ) -7.4 %
Total operating profit 766 1,666 (900 ) -54.0 %
 
Other income (expense):
Investment income 6 16 (10 ) -62.5 %
Interest expense   (98 )     (84 )     (14 ) 16.7 %
Total other income (expense) (92 ) (68 ) (24 ) 35.3 %
         
Income before income taxes 674 1,598 (924 ) -57.8 %
 
Income tax expense 205 526 (321 ) -61.0 %
         
Net income $ 469     $ 1,072     $ (603 ) -56.3 %
 
Net income as a percentage of revenue 3.6 % 8.1 %
 
Per share amounts
Basic earnings per share $ 0.49 $ 1.10 $ (0.61 ) -55.5 %
Diluted earnings per share $ 0.48 $ 1.09 $ (0.61 ) -56.0 %
 
Weighted-average shares outstanding
Basic 961 977 (16 ) -1.6 %
Diluted 970 987 (17 ) -1.7 %
                     
As adjusted income data:
Operating profit:
U.S. Domestic Package (1) $ 1,025 $ 1,046 $ (21 ) -2.0 %
International Package 449 417 32 7.7 %
Supply Chain & Freight   188       203       (15 ) -7.4 %
Total operating profit 1,662 1,666 (4 ) -0.2 %
 
Income before income taxes (1) $ 1,570 $ 1,598 $ (28 ) -1.8 %
Net income (2) $ 1,028 $ 1,072 $ (44 ) -4.1 %
 
Basic earnings per share (2) $ 1.07 $ 1.10 $ (0.03 ) -2.7 %
Diluted earnings per share (2) $ 1.06 $ 1.09 $ (0.03 ) -2.8 %

(1) Third quarter 2012 operating profit and consolidated income before income taxes excluded the $896 million pre-tax charge from the withdrawal liability associated with restructuring a multiemployer pension plan in the U.S. Domestic Package segment.

6 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs