Cash Position

For the nine months ending Sept. 30, UPS generated free cash flow in excess of $3.6 billion. The company repurchased 18.5 million shares for approximately $1.4 billion and paid dividends totaling $1.6 billion, a 9.6% increase per share over the prior year.

Capitalizing on credit market conditions, during the quarter UPS issued $1.75 billion of debt. Proceeds will be used to pay notes that mature in January 2013. The company ended the period with $9.0 billion in cash and marketable securities. The primary uses of these funds will be the acquisition of TNT Express and debt repayment.
       

Adjusted
   

 

U.S. Domestic Package

3Q 2012

3Q 2012

3Q 2011
Revenue $7.86 B

 

$7.77 B
Operating profit $129 M $1,025 M $1,046 M
Operating margin 1.6 % 13.0 % 13.5 %
Average volume per day 13.2 M 12.7 M

U.S. Domestic revenue increased $94 million over the prior-year period, driven by a 3.7% gain in daily package volume. Adjusted operating profit declined $21 million, impacted negatively by one less operating day and the timing of the fuel surcharge.

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