UPS (NYSE:UPS) today announced second quarter 2012 diluted earnings per
share of $1.15, a 7.5 percent improvement over the 2011 adjusted results. U.S.
Domestic operating profit expanded $122 million or 12 percent over the
prior-year period. On a reported basis, diluted earnings per share
increased 5.5 percent and U.S. Domestic operating profit rose 14 percent.
"Increasing uncertainty in the United States, continuing weakness in
Asia exports and the debt crisis in Europe are impacting projections of
economic expansion," said Scott Davis, UPS chairman and CEO. "Throughout
its history, UPS has maintained its strength in all economic cycles and
we are making the adjustments necessary to respond to today's
challenging conditions."
During the quarter, UPS made several announcements regarding its
proposal to acquire TNT Express. Plans for financing the purchase were
disclosed in May and the formal Offer Memorandum was filed in June.
Earlier this month, the company announced it was moving to a Phase II
review as there are certain areas that the European Commission requires
more time to analyze.
UPS expects to close on the transaction during the fourth quarter.
Cash Position
For the six months ending June 30, UPS generated $3 billion in free cash
flow, an increase of more than $600 million over the same period last
year. Capital expenditures were $949 million. UPS repurchased 11.3
million shares for approximately $870 million and paid dividends
totaling $1.1 billion, a 9.6 percent increase per share over the prior year.
UPS ended the quarter with $7.3 billion in cash and marketable
securities as it prepares to complete the acquisition of TNT Express.
